Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;

The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;

St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;

Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.

Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;

"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;

"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;

Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;

Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;

The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;

St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.

[smartcode_project_cta:default project_id=151826]

Joel Robinson

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.

Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.

The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.

The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.

Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.

[smartcode_project:default project_id=7574 project_image_fid=351654]

Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.

“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.

“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.

“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.

“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”

2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.

The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.

A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.

Sherpa acquires new site for second Brisbane apartment tower

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.

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

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

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

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

<html><body>
ANZ Banking Group will take a more cautious approach towards property borrowers' expenses from April.
ANZ is the final big bank to toughen rules on living expenses, in response to APRA concerns that banks have issued loans too easily.
Its note to mortgage brokers, ANZ said it would change the way living expenses were calculating home loan totals.
What the more prudent bank views as a "minimum" living expense will depend on the borrower's income, the number of dependants they have, and whether the application is for a joint or individual loan.
The changes, to take effect from April 4, Fairfax Media reported.
Mortgage brokers were advised on common scenarios, such as a hypothetical couple with two children wanting to buy a $500,000 investment property.
The slide pack says that due to the bank changing its estimate of such a couple's minimum living expenses, the maximum amount they could borrow would fall more than $50,000.
ANZ will also tighten assessments of overtime pay, bonuses and commissions. 
It will also lower its interest rate "buffer" – a rate that tests how borrowers would cope if interest rates rose.
"We regularly review our retail credit policies to ensure that lending remains prudent and aligned with risk appetite in light of the competitive, economic and regulatory environment," an ANZ spokesman said.
"For our customers, these changes are designed to ensure that we continue to assess any application for credit in a prudent way in view of their individual circumstances."
</body></html>

jchancellor-FAypfDUnLy

ANZ tightens lending rules for borrowers

<html><body>
Following on from <a href="/expert-insights/buying/no-pants-and-no-park-where-to-now-for-447-collins-street">Mark's article</a> on Planning Minister Wynne's rejection of CBUS Property's proposal for 477 Collins Street, I have decided to look at the case for the contentious Woods Bagot + SHoP designed scheme and add my two cents to the debate.

Firstly it's worth noting that the scheme as presented - albeit with some adjustments to setbacks - was ready to be submitted for assessment the week just after Planning Minister Wynne introduced interim planning controls for the Central City under the guise of Amendment C262. The previous proposal for a 297 metre single tower had already been knocked back by former Minister for Planning Matthew Guy under the former planning regime, sending CBUS and their design team back to the drawing board.

This despite the City of Melbourne providing support for the project on the grounds that it would introduce significant public space into the heart of the CBD, an extremely rare opportunity. Council acknowledged that they were unable to compete with developers in a bid to acquire land for much-needed CBD public space. It would cost council in the vicinity of $20 million just to purchase the site.

<blockquote>
The importance of the Yarra River as a key natural feature of Melbourne is acknowledged in State planning policy, the Melbourne Planning Scheme and the Planning Schemes of other relevant municipalities. The only basis upon which an exemption to the prohibition could possibly be contemplated is if there was a demonstrated public benefit which would outweigh such an impact on a natural asset of state significance.
<cite>City of Melbourne</cite>
</blockquote>

Following the Minister's refusal on the grounds of overshadowing Southbank, and in particular Queensbridge Square, the design team worked on developing the alternate scheme that had been presented as Option B, in parallel to the 297m Option A and addressed the concerns.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/447_collins_alternate_options.jpg" rel="gallery-all" title="Alternative Spire (left) and Bridge concept designs (right). Image courtesy SHoP / Woods Bagot"><img alt="" class="image-article-full-width-580px" height="269" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/447_collins_alternate_options.jpg?itok=aYGTCgoh" title="Alternative Spire (left) and Bridge concept designs (right). Image courtesy SHoP / Woods Bagot" width="580"></a>

<figcaption>Alternative Spire (left) and Bridge concept designs (right). Image courtesy SHoP / Woods Bagot</figcaption></figure>This took on the form of dual mixed use towers of 47-storeys and 165m linked by a skybridge not too dissimilar to the Option B design pictured above. The main point of difference being the relocation of the skybridge to the top of the two towers. Additionally the revised scheme provided 259 hotel suites and 315 apartments in addition to 68,364sqm of office space, 500sqm of retail space, and basement parking for 487 vehicles and 501 bicycles.

At ground level, a 2,000 sqm public space featuring a tree grove, promenade and an amphitheatre would greet pedestrians. It also no longer overshadowed Southbank between the key times of 11.00 am and 2.00 pm 22nd June.

The main point of contention this time around is Point 7 within Schedule 1 of the Capital City Zone, which following the introduction of the interim planning controls states:

<blockquote>
The construction of buildings and works which would cast any additional shadow across the north bank of the Yarra, 15 metres north from its edge… between 11.00 am and 2.00 pm from 22 March to 22 September is prohibited.
</blockquote>

Planning Minister Richard Wynne has previously stated that his powers on planning matters are discretionary and that developers could request exemptions to the interim rules if they could demonstrate their project would benefit the community. The development team had requested dispensation in order to facilitate the uniquely shaped development, with the hope of the project being the first proposal to receive a Ministerial waiver since the September implementation of the revised planning controls.

For mine 447 Collins Street stands out as a site to which these discretionary powers should be applied. The site occupies an entire city block in the heart of the Melbourne CBD, arguably characteristics of a "site of state significance" and one which should be exempt from the controls.

The proposal also would have complied with the previous planning controls and when coupled with the fact the scheme was ready to be lodged within days of the interim planning controls being introduced and considering there was no consultation or deadline enforced prior to the introduction it seems like a relatively unfair way to force a redesign.

An amnesty period of two weeks from the announcement should have been in place to allow developers and their design teams to complete and submit their applications.

In my opinion the benefit to the city of a new quality green space activated by retail and surrounding buildings far outweighs the negative impact of shadow to a stretch of Northbank which is generally undesirable and underutilised, largely as a result of the rail viaducts and bridges which cross the Yarra.

In addition to this I consider the architecture and form of the scheme to be of a high design standard particularly when considering the two offices which collaborated to produce the design. It's also worth remembering that CBUS Property undertook an invited design competition before appointing the architects, a clear appreciation of the importance of the site.

The $1 billion cost associated with the project also suggests this would have been anything but a standard run of the mill development.

The City of Melbourne's Future (Planning Committee) have also previously supported the revised scheme citing design merit and public space as the key factors towards approval:

<blockquote>
The key issues in relation to this amendment are built form, provision of publicly accessible space and overshadowing. The amendment enables the development of the site with a unique building that is generally acceptable in terms of its architecture, height, setbacks, tower separation, internal amenity and façade activation.

A significant amount of publicly accessible space is to be provided within the site which has good access to sunlight, will achieve comfortable wind conditions, incorporate (where applicable) landscaping with deep soil planting and provide true public street connections.

The proposal did comply with the sunlight to public spaces requirements prior to Amendment C262. The amendment is now prohibited because it casts additional shadow across the north bank of the Yarra (15 metres north from the Yarra River’s edge). The application documentation shadow analysis shows that the extent (length) of shadow is significantly reduced when compared with the previous amendment.
<cite>City of Melbourne Future Committee</cite>
</blockquote>

One of the biggest arguments I hear against the 447 Collins Street proposal is that it would set a precedent for other such proposals. For starters there aren't any other entire city blocks available for redevelopment along that stretch of Collins Street that could accommodate a large commercial and residential development and still provide a city park. If a developer is somehow able to consolidate a number of sites to do so and if a proposal demonstrates strong architectural merit then I don't consider that too big of an issue.

Lord Mayor Robert Doyle has also previously commented on this noting that "each (application) will have to be considered on its merits and, in fact, once you get one or two like this, it gets much harder in the future to argue that you should get an exemption." The key point here being that while planning controls are in place for a reason each application must be judged on its merits.

What implications the Minister's refusal of the scheme have for the site remain to be seen, but I hazard a guess the public open space may now possibly take on the form of a north-south laneway as a reduction in height will possibly mean greater building footprints. Perhaps a topic for another article…
</body></html>

Laurence Dragomir

The case for 447 Collins Street

<div>GUEST OBSERVER</div>

<div>&nbsp;</div>

<div>The Great Fire of London in 1666 destroyed a third of the city leaving more than 100,000 people homeless – and prompted King Charles II to issue a proclamation limiting future construction largely to brick and stone.</div>

<div>&nbsp;</div>

<div>For hundreds of years, modern building codes around the world reinforced the king’s approach, severely limiting the use of timber, particularly in multi-storey buildings, due to fear of fire.</div>

<div>&nbsp;</div>

<div>However, in recent years, there has been a resurgence of mid-rise timber buildings in Europe and North America. In the Canadian state of British Columbia, for example, a change to the building code in 2009 allowing for taller timber buildings has seen more than 330 building projects earmarked for construction in timber – and more than 80 projects completed or under construction.</div>

<div>&nbsp;</div>

<div>The resurgence has been enabled by a combination of growing awareness around the environmental and cost advantages of timber, and a willingness on the part of authorities to re-think the rules in the light of contemporary technology.</div>

<div>&nbsp;</div>

<div>At the time of the Great Fire, London did not have a fire brigade. Londoners, assisted by soldiers, had to fight the fire with buckets and fire hooks– and the most effective way to stop the spread of fire was to demolish houses and create a fire break.</div>

<div>&nbsp;</div>

<div>Today, not only do we have fire brigades, we also have automatic sprinkler systems, hose reels, portable fire extinguishers, smoke alarms, fire-protective grade plasterboard and cavity barriers, intumescent seals (door seals that expand in the event of fire to block smoke and hot gases)…</div>

<div>&nbsp;</div>

<div>This year, the Building Code of Australia 2016 will include a Deemed-to-Satisfy (DTS) approach for timber buildings of up to 25 metres in effective height – typically eight storeys – on the proviso that a raft of safety features such as those I’ve discussed are included. Mid-rise buildings constructed in&nbsp;fire-protected timber&nbsp;– combined with sprinkler systems – can provide fire safety standards that not only&nbsp;equal&nbsp;conventional alternatives, but&nbsp;exceed&nbsp;them.</div>

<div>&nbsp;</div>

<div>Modelling by EFT Consulting ahead of the code change suggests there would 83 per cent fewer fatalities and almost 70 per cent less property damage from fires in timber buildings conforming to the new DTS provisions, compared to conventional buildings – where no sprinklers are required.</div>

<div>&nbsp;</div>

<div>The new provisions require: timber walls be ‘sandwiched’ between layers of fire-protective grade plasterboard of the type used in high rise commercial buildings; fire hydrants, hose reels and portable fire extinguishers similar to those for conventional buildings; fire-resisting cavity barriers e.g. mineral wool; and a fire sprinkler system.</div>

<div>&nbsp;</div>

<div>The changes were approved by the Australian Building Codes Board technical committee that includes Engineers Australia, Australasian Fire and Emergency Service&nbsp;Authorities Council (state fire brigades), the Australian Institute of Architects, Master Builders Australia and the Housing Industry Association.</div>

<div>&nbsp;</div>

<div>Just as fear of fires can be easily addressed when you look at the facts, reassurance can also be offered on other genuinely-held concerns – and enable the property domestic building industry to achieve the cost savings associated with timber, which is estimated by&nbsp;AECOM&nbsp;at 10-20 per cent in an Australian setting, largely because of faster build times.</div>

<div>&nbsp;</div>

<div>Mid-rise timber buildings can be built on top of concrete ground floors, which, when combined with standard termite prevention measures such as barriers, traps and treatments, is sufficient to protect them; the designer of any mid-rise building – timber or not – needs to consider how to counteract a range of environmental hazards.</div>

<div>&nbsp;</div>

<div>Many people also don’t realise that mid-rise timber buildings are externally clad to protect them from water damage and extend their effective life well beyond the mandatory 50 years specified by authorities.</div>

<div>&nbsp;</div>

<div>Mid-rise timber apartment buildings offer domestic builders who are prepared to innovate and upskill their teams a wonderful opportunity to reach new markets on suburban sites which may not previously have been viable, to save on costs and to build in a much more environmentally friendly manner.</div>

<div>&nbsp;</div>

<div>Ric Sinclair is the Managing Director of Forest &amp; Wood Products Australia, an industry group which spearheaded a two-year consultation and research process ahead of the change to the Building Code of Australia.</div>

po-LsXgBTHBmX

Property 101: Dousing fire fears for mid-rise timber apartments

<html><body>
Melbourne’s construction boom is getting another boost with another $42 billion of projects set to commence within just two kilometres of Melbourne’s CBD, fuelling a second wave of local and international investment with investors from Europe, China, Singapore, Malaysia, the UK and the US attracted by the city's population growth and development pipeline, according to Savills.
The construction boom, which has produced a record 160 cranes on the skyline - mostly on new apartment towers to accommodate population growth and overseas students – will now see a whole new round of residential tower construction, new hotel construction on the back of a rise in tourist numbers, and at least $20 billion of major infrastructure projects including Melbourne Metro railway and Flinders Street station, hospital, road and sporting upgrades.
"The stimulus provided by all of this development and new infrastructure is driving a whole new level of investment in Melbourne in all sectors of the commercial property market including office and retail assets, subdivision land, car parks, shopping centres, hotels and development sites, and investor confidence in Melbourne is soaring as a result," said Savills’ state sales director Clinton Baxter. 
"Obviously, we’re experiencing a massive rush of capital into our market from interstate, China, Malaysia and Singapore, but the attraction of Melbourne has now spread globally with assets being sold to international interests from Canada, the Netherlands, UK, USA, India and New Zealand. We’ve also had investors out from Botswana, Indonesia, Germany, Russia, Vietnam, Korea and Japan scouring the Melbourne market for opportunities.
Savills’ analyst Mark Stafford said the apartment construction boom, already five years old, was set to escalate with a huge new round of apartment tower construction led by Australia 108 in Southbank, the 92-level Aurora development opposite Melbourne Central, and a further 20 plus apartment towers in excess of 200 metres in height already in pre-sales or early stages of development.
Hotel construction is also in full swing as local and international hotel operators scramble to take advantage of the record high room occupancy rates throughout the city, he said.
Stafford said the 110 projects totalling $42.035 billion and ranging from $25 million to $11 billion included:
<a href="/images/2016/03/30/melbourne1.jpg" target="_blank">Click to enlarge</a>
 <img src="/images/2016/03/30/melbourne1.jpg" alt="">
Baxter said the most significant drivers for international investors were Melbourne’s rapid population growth, its most liveable city status, and its nation-leading overseas student/education sector, while the combination of stable government and a relatively safe social environment were additional factors which added up to a very sound investment CV. 
The low Australian dollar was the icing on the cake, making the investment rationale extremely compelling, said Baxter.
He said after a slow start in the role, Victorian Planning Minister, Richard Wynne had also played a major role in rapidly restoring confidence in the development sector with a spate of major new apartment tower approvals throughout the CBD, Docklands, Fisherman’s Bend and Southbank amounting to several billion dollars of future development. 
"Inner Melbourne is maturing rapidly, Docklands is filling fast, our population is set to double to eight million by 2050, student and tourist numbers are rapidly trending upwards, tens of thousands of construction jobs are being created, which in turn fuels housing and retail spending, and all levels of government are actively promoting development in the inner urban area.
"We limited our assessment to larger projects within just two kilometres of Melbourne’s CBD. When you take into account all the projects throughout the whole metropolitan area, plus additional major infrastructure investment such as the Melbourne Airport and Port of Melbourne expansions, the weight of investment into Melbourne’s growth is absolutely enormous and extremely exciting for all market participants.
"Melbourne is firmly on the map for global investors, and with so much scheduled growth, we are already experiencing the emergence of a second wave of international investment.’’
</body></html>

jonathanchancellor-7SQnKwU6yx

Melbourne gears up for second construction wave: Savills

<html><body>
Hobart's commercial market is witnessing a number of hotel developments, including a 296-room project by Singapore-based Fragrance Group.
Describing the commercial market in the Tasmanian city as “selectively robust”, Raine &amp; Horne Commercial co-principal Leslie Simpson says there is "strong demand for some categories of commercial property and limited interest for other assets, which is probably similar to other cities around Australia”. 
Self-managed super funds are driving exceptional demand for passive investment stock, adds Simpson.
“These investors are happy to acquire assets that reflect yields below historic benchmarks for the Greater Hobart area,” he said. “Many will accept these returns based on the justification that they are still better than bank account earnings. However, this purchaser type is highly risk averse, with interest quickly diminishing if not supported by a strong lease covenant”.
According to Leslie, the more traditional investors in the Hobart market are still seeking higher, more traditional yields, often leaving a gap between vendor expectations and market interest for secondary investment stock with short term leases.
Retail, industrial and visitor accommodation properties are attracting significantly more interest than other forms of commercial real estate, according to Leslie.
“Tasmania’s impressive recent growth in both domestic and international visitor numbers has seen very strong market interest in visitor accommodation, particularly from Asian interests.
“We currently have three new hotels under construction in the Hobart CBD, and there are another four hotels either proposed or with permits subject to appeal."
</body></html>

prateek24-ezbwHMbNAk

Hobart commercial market is selectively strong: Raine & Horne

<html><body>
Private equity giant The Carlyle Group is one of the parties circling the theme park, marina, bowling centre and gym owner, Ardent Leisure. 
The Australian Financial Review's Street Talk column revealed that Carlyle's dealmakers are keeping a close eye on Ardent which fits the break-up and turnaround aspects of the private equity playbook. 
Ardent announced plans to offload its $110 million-odd d'Albora Marinas division last week, promising to direct funds for its Main Event bowling and entertainment centres. 
Ardent Leisure put its <a href="https://www.ardentleisure.com/our-brands/dalbora-marinas/" target="_blank">d’Albora Marinas business</a> up for sale last week, moving to shore up its balance sheet and focus on its Main Event family entertainment division.
d’Albora Marinas comprises seven high profile  marinas, including three in Sydney Harbour, two adjacent to the Melbourne CBD and a further two at the popular leisure destinations of Nelson Bay and Akuna Bay, north of Sydney. These locations represent over 1,300 berths, substantial water and land leases with development opportunities. 
d’Albora Marinas, the largest marina group in Australia, saw interim revenues fall 2.3 per cent in the company’s most recent results, with earnings before interest, tax, depreciation and amortisation sliding 8.6 per cent to $4.6 million over the six months through December.
Ardent said the sale of the marinas will “assist in accelerating the pace and development” of the Main Event business in the US, as the company bumped up the number of new centres it plans to open in the 2017 financial year to 11, up from a previously planned 8, bringing the total number of centres to 38 locations across 12 states.
“These decisions follow a period of review over the last six months and position the group as a premium family recreation and entertainment company,” chairman Neil Balnaves said.
“Deborah Thomas and the management team have commenced the process for the sale of d’Albora Marinas and the remainder of these initiatives will be implemented as a priority over the next 12 months,” Mr Balnaves said.
“In due course it is expected that, with the growth of the US assets outweighing that of the Australian businesses, the balance of the group’s assets and revenues will become more weighted to the US,” he said. 
</body></html>

Ardent Leisure's marinas for sale

<html><body>
<img src="/images/2016/03/30/Holdencapital_banner.jpg" alt="" width="646" height="136">
SPONSORED POST
This is a question faced by many developers as they find themselves inevitably stepping up to larger projects and the consequential demand on their equity resources. The answers are complex and can vary depending on many variables but let’s take a look at what each option offers
Firstly, lets be clear on the differences between debt and equity. Debt comes in many forms but essentially, it comprises funds that are lent at a proscribed interest rate which in a project scenario are usually but not always, capitalized as a cost of the project. Debt is typically but again not always, secured by a registered charge over the security property together with sponsor guarantees and in the final wash up, the lender’s repayment of capital, interest and fees take priority over those of the sponsor when apportioning the proceeds of sale. Clearly it is important to negotiate the best possible terms when committing to a debt position but at the end of the day, the golden rule tends to apply, he who has the gold, makes the rules.
Equity on the other hand is usually defined as the capital contribution provided by the sponsor of the project and any related parties. Equity can take the form of cash, services provided and any improvement in value derived from the revaluation of an asset as a consequence of a rezoning or similar.
Sponsor structures can take many different forms but for the purposes of this article we will treat partnerships the same as single traders (as do lenders), while Joint Ventures provide a structured arrangement enabling parties with differing skills and or capabilities to come together to undertake a project and share in the resulting profits. 
The manner in which debt and equity can be sourced and applied is almost limitless but lets take a look at the typical options available to a developer and consider the benefits.
The Debt Options:
Firstly, you need to be aware that the state of the market will often determine what is actually available. Simplistically, in a rising market, access to both debt and equity is typically more readily available and pricing is competitive. Traditional debt providers such as the banks and major funds chasing market share, will consider higher Loan to Cost/Value ratios, more competitive terms such as lower presale requirements and keenly priced interest margins and fees.
Alternatives such as mezzanine funding also become more prevalent in rising markets with participants providing funds to top up the capital stack in a project. Typically filling the gap between senior debt at say 75-80 percent up to 90-95 percent of the total project cost, the cost of Mezzanine can range from 20-25 percent p.a. but as the market gets hotter and depending on the level of risk, pricing can fall to as little as 14 percent.
While these funds may seem attractive, they are often accompanied by very tight and restrictive terms, which can result in the sponsor losing control of the project to the advantage of the mezzanine lender. Sponsors need to be aware that a Mezzanine partner is really just another lender albeit with more to lose that the senior debt provider and when the going gets tough, you potentially have two masters to satisfy rather than just one and neither is likely to have the same agenda as you.
A key point to remember is that in a rising market Mezzanine Lenders are attracted to a share of the upside and negotiate accordingly. In a falling market they will seek to cap their exposure and prioritise their returns at your expense. Conversely, you as the developer are looking to maximise the blue sky in the project or protect your downside as the case maybe.
“Stretch senior” debt is another option that is usually seen in stronger markets with some specialist lenders prepared to exceed the usual Major bank construction loan LCR’s of between 70-80 percent by lending up to 90 percent+ of LCR in return for a margin that reflects the associated risk, which might be some 3-4% above that charged by the banks, depending on their assessment of the project and sponsor risks.
In a falling or credit constrained market as we are currently experiencing, the traditional lenders tighten their terms and we see LCR’s firm to between 65-75% and the application of stricter presale requirements, typically with a minimum of 100% debt cover as a condition precedent. 
Joint Ventures:
The attraction of Joint Ventures is that they provide a multitude of structures that can be tailored to the developers needs and typically provide access to capital and expanded skill sets in return for a share of both the profit and the risk.
Like debt, Joint Venture funds are easier to secure in a rising market but even more importantly than with debt, the secret here is to find the right partner. While negotiating the right terms and a soundly drafted JV Agreement are critical (we will deal with this in a future article), the most important consideration is finding a partner who not only has complementary skills and capabilities to work with their own but also has the same goals and values in terms of their decision-making processes. This is a more challenging exercise that selecting the right debt or mezzanine partner but has the potential to be far more rewarding. 
The classic JV structure where the parties are equal in their contributions and profit entitlements are rare with most comprising of a party with the ideas/opportunities and the other with the capital and resources to make it happen or a similar permutation. As a result, in a rising market Joint Venture partners with capital are attracted by an increased share of the upside and negotiate accordingly, while in a falling market they will seek to cap their exposure and prioritise their returns at the expense of their partner or the lender. Conversely, the initiating developer is also self motivated and looking to give away as little as possible in their project which usually results in an increased downside in the event that they do not perform their obligations and for newcomers this inevitably ends in tears as they over estimate their own capabilities.
So, the question as regards more debt as opposed to equity is not simply one of cost. More importantly it is one of understanding your capabilities to deliver and being able to deal with the consequences if unforeseen forces result in a less than optimum outcome.
In the case of “more debt”, the developer needs to be aware that losing control to the lenders has a proportionally higher risk in terms of the financial consequences both in terms of the project and their personal fortunes. On the other hand the Joint Venture can reduce the downside risks from a capital exposure perspective but comes at the cost of having to give away a substantial portion of the projected profit.
So, there is no right or wrong answer here, the key question an under capitalized developer needs to ask themselves is what option best fits my situation, what is the downside if events outside my control mean that the project fails and can I live with the consequences of my decision?
 
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arrange construction finance and invest in projects through their equity fund, Queen Street INVEST. To discuss your project finance requirement please call (07) 3171 4200 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au/" target="_blank">here</a>.
</body></html>

Risk and Reward – Does more debt solve your problems or do you need a JV Partner? HoldenCAPITAL

<html><body>
The top sale of the week was a five bedroom beachside home at Bronte in Sydney's Eastern Suburbs, according to CoreLogic RP Data. 
The property, 1 Bronte Marine Drive, Bronte (above) sold for $8.5 million through Laing + Simmons  Double Bay 
Top ten sales
1 Bronte Marine Drive, Bronte, NSW  5 bed, 4 bath, 2 car house  $8,500,000  Laing + Simmons  Double Bay 
6 March Street, Bellevue Hill, NSW  4 bed, 1 bath, 2 car house  $5,265,000  Sotheby’s International Realty  Sydney 
602/14 Macleay Street,  Elizabeth Bay, NSW  3 bed, 2 bath, 2 car unit  $4,900,000 Richardson &amp; Wrench Elizabeth Bay/Potts Point 
22b Haughton Street,  Linley Point, NSW  4 bed, 3 bath, 2 car house  $4,350,000  John Ward Realty  Hunters Hill 
44 Wallis Parade,  North Bondi, NSW  4 bed, 2 bath, 4 car house  $4,275,000  Express Realty/  Raine &amp; Horne 
8 Kirkoswald Avenue,  Mosman, NSW  4 bed, 2 bath, 1 car house  $3,920,000  David Murphy  Real Estate 
53a Carlotta Road,  Double Bay, NSW  6 bed, 4 bath, 2 car house  $3,875,000  McGrath Estate Agents 
24 Northland Road,  Bellevue Hill, NSW  4 bed, 2 bath, 2 car house  $3,675,000  Goodyer Real Estate 
2/16 Thornton Street,  Darling Point, NSW  4 bed, 3 bath, 3 car house  $3,500,000  Sotheby’s International Realty Sydney 
10 Ocean Grove,  Collaroy, NSW  5 bed, 3 bath, 2 car house  $3,375,000  First National Caputo  Dee Why
</body></html>

mick.cee-iDmgDDAmu8

Bronte beach pad leads CoreLogic RP Data's top ten sales

<html><body>
The Royal Children’s Hospital secured $663,000 after Henley and Villawood Properties offered an auction property proceeds towards the hospital’s Good Friday Appeal.
<a href="https://www.youtube.com/watch?v=2-dDdw7D1Ek" target="_blank">The property</a> was at Villawood Properties’ Trillium community in Mickleham.
There was spirited bidding for the home at the no reserve auction where all proceeds were donated to the hospital.
This Easter marked the Good Friday Appeal's 86th year of contribution to the Royal Children's Hospital.
The Henley home that sold to the Elsikmani family brings to approximately $4.4 million the amount raised for the hospital through this initiative since Villawood Properties’ involvement began seven years ago. 
At over 48 squares, this property featured four bedrooms, three bathrooms, and living areas and outdoor alfresco - all appointed with the highest quality of fixtures and fittings.
The Trillium community has a residents only facility Club Trillium which features a fully equipped gym, heated 25 metre lap pool, tennis courts, community gardens as well as a function room. 
The Royal Children’s Hospital secured $646,000 last year after Henley and Villawood Properties offered an auction property proceeds towards the hospital’s Good Friday Appeal.
</body></html>

Villawood and Henley combine to raise funds for the Royal Children's Hospital Good Friday appeal

<html><body>
GUEST OBSERVER
Sydney buyers looking for a freestanding home are starting to be frozen out with the infiltration of apartments, and property experts are widely talking about unit prices dropping due to oversupply - but is this the only issue? This is just one problem but many others are being ignored. 
Exceptional market conditions in Sydney meant that apartments were significantly more affordable than houses for many buyers – last year especially – and as a result, many development applications were submitted for new apartment high rises. As a result, Sydney took over from Melbourne as the leading capital for apartment development and in July alone last year, the City of Sydney received more than 2,400 development applications, in what was quoted as a record high.
By 2018, the City of Sydney expects 8,000 new dwellings to be completed, while Green Square is expected to house more than 54,000 people by 2030<a name="x__ftnref3" href="https://outlook.office.com/OWA/?realm=propertyobserver.com.au#x__ftn3" title="">[3]</a>. Looking north of the bridge, St Leonards will have more than 500 new apartments by 2020.
“here’s an apartment boom but where is the foundation? If we look at supply and demand a year ago, apartments were in demand mainly because of the investor boom and many owner-occupiers were priced out of purchasing a family home. What I want to know is are we building the right course for the right horse?
Think about housing diversity five years ago and look at where we are heading by 2020, we’ll have a remarkable number of apartments by then. The size and scale of this issue is much bigger than we even realise and there’s a real lack of research around the implications on infrastructure, mental health and other future ramifications. 
This year, it’s been estimated that almost 45,000 apartments will be completed and settled in Sydney, Melbourne and Brisbane, with an additional 53,000 due for completion in 2017.
We are reverse engineering the supply and demand process and changing the behaviours of people as a result.
We are forcing buyers into considering apartments because the reality is that they have very little other option in a semi-affordable price range. We are starting to see some ill-effects from an oversupply of apartments such as rents falling for the first time in three years, as well as vacancy rates rising. A number of reports show that this is already happening but this is not the only issue. There are also huge socioeconomic issues that will arise from this boom.
A report on housing demand from NSW Planning and Environment predicted that Sydney will have an extra 1.6 million people by 2031, and more than 664,000 homes will be needed. It claims that the rise in single-person and couple-only households as well as an ageing population is driving the need for smaller dwellings. This report also revealed how the government would create housing diversity, which included studio flats (self-contained studio apartments that are established with a main house), smaller lot sizes (standard minimum lot size for high and low density areas), townhouses and terraces, and manor homes (four separately titled units within the same building). 
Although I acknowledge the findings in the report, I still believe that a lot of these apartments are being built to feed the investor boom as opposed to a spike in people looking for low maintenance properties. How are freestanding, detached homes not part of a housing diversity plan? We need to have more dialogue on this and think of more creative ways to build more townhouses or single house dwellings for a similar price as apartments – in a way that doesn’t skimp on build quality. Increasing population is a problem for everyone. Let’s not just build tower blocks at extortionate prices, let’s build dwellings that Australians are happy to come home to.
Five solutions for housing diversity that meets demand:
1. Increase ‘stepping stone’ homes. Currently, there is a very small pool of stepping stone properties available for buyers. I don’t understand how we expect people to go straight from a unit into a four-bedroom home if things continue on the same trajectory. Town planners really need to focus on building a bridge for buyers from their first property to their second property because the type of supply is not readily there. Terrace houses take up a lot of space and that’s why they’re not being built as much – but they’re a good example of a stepping stone property.
Likewise, if you look at people downsizing, which many baby boomers are in the midst of doing or considering, they might want something in between their four-to-five-bedroom family home and an apartment. Generally, at the end of the day, younger people live in tower blocks. After the kids have flown the nest, downsizers are usually only open to moving into a 16th floor shoebox with shared walls when it also comes with something as spectacular as harbour views.
Sydney’s Leppington is planning to introduce a contemporary equivalent to the Paddington and Surry Hills terrace-style houses as part of its redevelopment masterplan and I think this is a great example of forward thinking. Sure, the suburb is very much a blank canvas so they have the luxury of planning really thoughtfully and building for the future, but there’s no reason why other suburbs can’t plan for the future – they just have to be more creative about it.
2. An in-depth, socioeconomic study. 
A number of studies have been carried out to determine the happiness of people living in high rise apartment blocks, with one study in the UK revealing some alarming results, including that apartment living can increase your susceptibility to stress and your risk of developing mental health issues, and could even cause a relationship break-up. Furthermore, the study revealed that there are serious concerns for children brought up in apartments; children can suffer from hyperactivity, hostility and juvenile delinquency as a result. Not enough socioeconomic studies have gone into this on a local level and it’s absolutely something we need to explore.
Size is one thing but we also need to consider the emotional impact of living high up in the air. I understand the economics of the situation but I don’t think enough research goes into it. Yes, there’s demand but I think we should start building dwellings that people want to live in – not just because it’s the only option, price-wise. We have a responsibility for future generations to preserve the integrity and ambience of certain areas, and need to take a step back and look logically at this because the mental wellbeing of our community is also very important.
3. More emphasis on planning for the future of our city. 
You can’t just rezone an area for fun. While it’s true that people work longer hours, are information rich and have fewer children, that can’t be translated directly into them wanting smaller dwellings. Residents of family-centric areas are getting together to oppose the rezoning of their suburbs, and we saw just one example of this in the inner-west suburb of Hurlstone Park earlier this year. 
You have to ask why units are being built in family-belt areas to create more diversity from a demographic point of view. People often move to these suburbs for a more peaceful or quieter life, so why are some councils now trying to entice youth into the area? Most young people want to live in a vibrant suburb with all the trimmings, which makes living away from inner-city areas less appealing to them. I think the Federal Government is putting pressure on the NSW State Government to meet various quotas which trickles down to the councils and that’s how we arrived here – building for today but not for tomorrow. 
4. Assess implications on surrounding infrastructure. 
I applaud the government for getting the big ticket items right such as public transport and widening of motorways, but they need to work further on local transport and roads, as well as schools, shops and other infrastructure essential for these new high-density communities. What new apartment developments are going to do is put a lot of stress on small intersections and I’m not sure if we are looking at the full impact on society. Are we still surveying roads and measuring traffic flow like we used to in soon-to-be affected intersections every morning and afternoon? If we’re not, we certainly should be. 
5. Incorporating vertical forests into more developments. 
My concern with apartments is how the lack of greenery negatively impacts residents’ wellbeing. It’s been scientifically proven that green is a calming colour and nature is a calming influence and I think it’s crucial for apartment blocks. Large-scale, inner-city urban renewal projects are really thinking creatively about how they can incorporate plant life. Central Park in Chippendale is a great example, with vertical gardens and surrounding parkland, and developments at Green Square as well as Barangaroo are also focused on incorporating greenery. The developers aren’t doing it just because it looks good, they’re doing it because it’s essential to keeping residents happy.
DOUGLAS DRISCOLL is CEO of real estate agency <a href="https://www.starrpartners.com.au/" target="_blank">Starr Partners</a>.
</body></html>

Latest Expert Insights

Parcel delivery is joining the apartment amenity checklist

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

Parcel delivery is joining the apartment amenity checklist

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News