<a href="/new-apartments/park-modern-south-melbourne-1-middleton-lane-vic-3205">Park Modern</a> isn’t just a project for Tim Price - it’s a passion piece.&nbsp;

Located in South Melbourne’s prestigious Domain precinct, the development represents years of planning, site amalgamation, and deep connection to place.

I recently had the opportunity to sit&nbsp;down with Tim Price, Founder and Director of <a href="/developers/time-place">Time &amp; Place</a>, to explore the vision and design ethos behind Park Modern—an ambitious new $500 million mixed-use development overlooking Melbourne’s iconic Botanic Gardens.

<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/45wmGXBHsI8?si=x3XdnycJ0nNbNteT" title="YouTube video player" width="560"></iframe>

Price says the team is "very excited about this one."

“As a business, we have been investing in both the real estate design and the development of this for about five to six years," Price says.

Park Modern, which will home 243 apartments, sits on a prize 2,398 sqm block bordering&nbsp;Dorcas Street, Wells Street, and Middleton Lane. Importantly, it integrates residential amenity with retail, wellness, and community connection.

<img alt="Park Modern" data-entity-type="file" data-entity-uuid="859906cc-bb07-404b-a891-70fb1afb7f3f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-06-24%20at%202.12.50%E2%80%AFPM.png?VersionId=adAJ9uUY2ZST94I6TxRe1VU8fS46PLp6" />

“The Domain precinct of Melbourne is a special place from a residential point of view,” Price notes.

“I feel like I know this area really, really well… you’ve actually got to work through exactly what it is that people are really going to be interested in living in.”

A distinctive feature of Time &amp; Place’s design process is how Price envisions future residents by placing himself in different life stages. This mindset helps shape a product that is both aspirational and grounded in real-life usability.

<img alt="Time &amp; Place" data-entity-type="file" data-entity-uuid="6196209c-1e5d-4a18-b4ef-79041cf4d510" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TIME11625_Park%20Modern_EL01_Superman%20View%20to%20CBD.jpg?VersionId=F3HaCqN_OmAr57RjxByvkWJy0hHUND8F" />

“There’s a large portion of the building which is designed for an owner-occupier. That’s not always about downsizing. Sometimes it’s just about creating a space which is easily maintained, lock up and leave, reflecting people’s aspirations,” he says.

The building design reflects this philosophy with generous living areas, big dining spaces for entertainers, and open terraces—elements that cater to the “sticky” nature of long-term residents. He compared the design by Bates Smart to The Melburnian, a nearby St Kilda Road landmark designed by Bates Smart.

“If you look at the turnover in The Melburnian building… they’re very sticky. People love living there. It’s a combination of the quality of the building and also the location.”

<img alt="Time" data-entity-type="file" data-entity-uuid="f536bdee-0a63-4bb9-8648-4be2a6f49d8e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TIME11625_Park%20Modern_EL03_3Bed%20Residences%20Balcony%20Level%204%20-%2017.jpg?VersionId=df9c0elD7xrZn0oEnWJT4z1TAYVCMBeG" />

&nbsp;

Park Modern will feature two sculptural towers joined by a central garden bridge, resting on a podium. This layout not only maximises view lines to the park and the bay, but also reinforces a “village-style” living concept—where connectivity, wellness, and walkability are prioritised.

In keeping with post-pandemic living priorities, the ground floor of Park Modern will dedicate space to wellness and flexibility. Instead of traditional large-format pools, the development will feature plunge pools, magnesium pools, Finnish saunas, and daybeds. There’s also a co-working space and a studio offering for pilates and cardio workouts.

“We’ve got an element which is really dedicated to wellness… really focusing on if we were living in this space and enjoying the benefits of adjacency to areas to run and exercise.”

The entrance experience, too, is designed to impress, pulling in elements of the gardens through beautiful landscaping, concierge service, and a thoughtfully integrated porte-cochère.

With sales set to commence later in 2025 and construction to follow, Park Modern is poised to become a defining project for Time &amp; Place and for Melbourne’s city fringe.

[smartcode_project_cta:default project_id=138453]

Michael Bird

Inside Park Modern, South Melbourne: Five minutes with Time & Place Founder Tim Price

The Southern Gold Coast continues to attract buyers seeking sun and surf, especially downsizers and lifestyle-driven investors shifting away from traditional beachfront palaces toward more approachable, flexible apartment living.&nbsp;

In Market Insights EP 97, Apartments.com.au CEO Mike Bird sits down with <a href="/project-marketer/srq-projects">SRQ</a>’s Nicholas Clydsdale to unpack this transformation, why demand is soaring in places like Rainbow Bay, and how developers are navigating a more measured but still highly competitive market.

<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/EnQKE8rDgNw?si=jiuP4tUafnO0WTNX" title="YouTube video player" width="560"></iframe>

Clydsdale says the post-COVID real estate wave reshaped both buyer behaviour and developer strategies in Southeast Queensland.

“What we saw was that the prime beachfront market was very well serviced,” he explains. “A lot of developers from the south, along with a lot of interstate migrants, decided to bring forward their retirement plan or alter their lifestyle. They wanted to live on the beach in the Gold Coast.”

But now, the focus has shifted toward “A-minus” product—still beach-adjacent but more accessible in price.

“We’re seeing a real resurgence in the A-minus market,” Clydsdale says. These are typically two or three-bedroom residences, ideal for buyers who want flexibility.

“It’s a lock and leave holiday home, but they might also want to let it out in a holiday-let style business.”

[smartcode_project:default project_id=109905 project_image_fid=209094]

SRQ’s work with Brisbane-based developer <a href="/developers/chapter-two">Chapter Two</a> on the <a href="/new-apartments/holm-rainbow-bay-44-50-eden-avenue-coolangatta">Holm Rainbow Bay</a> project illustrates how developers are responding to the market’s evolving preferences.

The project was launched around two and a half years ago, at a time there were no builders.

"The market was quite chaotic," Clydsdale recalls.

Instead of pushing ahead under pressure, Chapter Two and SRQ paused the release, reframed the project, and later re-entered the market. Six months after starting construction, the project is now over 80 per cent sold.

Holm consists of 87 two and three-bedroom apartments and a handful of four-bedroom townhouses, designed by Plus Architecture.

Crowning the 12-level building will be a residents' club featuring a 25-metre rooftop pool, spa, sauna, steam room, yoga deck, outdoor dining area with barbecue facilities, and a fire pit.

Additional features will include a gymnasium, a work-from-home area, a library, and a function room.

[smartcode_project:default project_id=109905 project_image_fid=209099]

Another emerging trend, Clydsdale says, is longer-term planning from buyers. Rather than making immediate moves, many are purchasing apartments off-the-plan with two to three-year completion horizons.

“What we've seen is a specific trend in the last six months is buyers - whether they're in Brisbane, Sydney, or Victoria - come up and do two or three holidays and hone in on the area. Rather than going the whole hog and selling the house, they'll buy a two-bedroom or a smaller three-bedroom apartment and look forward to take delivery in two or three years."

These buyers often retain their existing homes while gradually preparing for a future relocation to Southeast Queensland. For some, the timeline from purchase to full relocation may stretch to a decade.

Clydsdale highlights southern coastal areas such as Burleigh, Palm Beach, Coolangatta, and Rainbow Bay, as well as northern New South Wales towns like Kingscliff and Cabarita, as current areas of strong buyer interest.

He adds that projects in the range of 20 to 150 apartments are striking the right balance.

“From a buyer’s point of view, it's not just investment stock. They’re more livable. But also from a delivery point of view and a risk point of view for a buyer, there are a lot more builders out there in that project size. There's a lot more certainty of delivery and of quality.”

SRQ's next project to launch is <a href="/new-apartments/the-frederick-2265-2267-gold-coast-highway-mermaid-beach-qld-4218">The Frederick at Nobbys Beach</a>&nbsp;by <a href="/developers/big-projects">Big Projects</a>.

[smartcode_project_cta:default project_id=109905]

“What we've seen is a specific trend in the last six months is buyers - whether they're in Brisbane, Sydney, or Victoria - come up and do two or three holidays and hone in on the area," Clydsdale says

Gold Coast buyers starting to think longer-term: Five minutes with SRQ Projects Director Nick Clydsdale

There arguably hasn’t been as much national—or even international—fanfare for a Gold Coast apartment development as there has been for the recent launch of <a href="/new-apartments/pescado-palm-beach-228-230-jefferson-lane-palm-beach-qld-4221">Pescado</a> in Palm Beach.

The project is being undertaken by international DJ Paul Fisher and his wife Chloe. The couple, who have just launched YLB Property Development, intend to make the two-level penthouse their base when they’re back in Australia.

The remaining six levels will each comprise a full-floor apartment, set behind a striking curved facade by locals BDA Architecture.

Beyond the fanfare of the launch, genuine interest in the apartments has been strong, according to <a href="/project-marketer/pezet-matheson">Pezet Matheson</a> Managing Director Jayde Pezet.

"Buyers may have been alerted to the project because of the broader-than-usual media coverage it received at launch, but genuine buyers look beyond that and recognise the level of finish and detail," Pezet says.

While enquiries have come from both local and interstate buyers, it's locals who are showing the most interest.

"Everyone on the Gold Coast loves Palm Beach, and Jefferson Lane is the best street in the suburb," Pezet says.

I recently caught up with Jayde to discuss the project in more detail.

<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/GNGegaz6UDQ?si=Qgrs2mQ1GVRGyNtC" title="YouTube video player" width="560"></iframe>

“With this project being so important to Paul and Chloe, and being what they refer to as their forever home, they’ve looked at it and gone, ‘We are going to make this project within code.’”

The result is a low-density, high-amenity development that emphasises lifestyle and spatial quality rather than volume.

Each of the six full-floor residences spans around 325 sqm and have three bedrooms, an MPR, ocean-facing balconies, and interiors inspired by the Fishers' global travels.

All residences have access to a suite of wellness-focused communal spaces, including a pool, gym, and cold plunge facilities - features reflective of the Fishers’ personal lifestyle, which Pezet describes as “heavily wellness-oriented.”

“They're both incredibly into wellness - they eat super clean, they exercise, they ice bath - and you'll see that as a reflection in the project's amenity but also in the way they live their life,” he said.

[smartcode_project:default project_id=149651 project_image_fid=342046]

With prices ranging from $5.25 million to $7.1 million, Pescado is targeting a narrow but clearly defined buyer pool.

"We've still had an incredible amount of interest from baby boomers, but there have been younger people that have been inquiring also," said Pezet.

[smartcode_project_cta:default project_id=149651]

Each of the six full-floor residences spans around 325 sqm and have three bedrooms, an MPR, ocean-facing balconies, and interiors inspired by the Fishers' global travels

A "passion project" not to be repeated: Inside DJ Fisher's Pescado Palm Beach with Jayde Pezet

South East Queensland builder-developer <a href="/developers/gardner-vaughan-group">Gardner Vaughan Group</a> (GVG) is creating a new mixed-use village in its native Nundah, a suburb they’ve called home for decades.

Close to their heart, GVG called on community feedback during the planning and design phase of what will not only be a rare opportunity to live in a brand new apartment with doorstep retail and hospitality venues, but also their future home, as they plan to relocate their current Union Street office into the development.

The new project, <a href="/new-apartments/danby-lane-nundah-village-5-danby-lane-nundah-qld-4012">Danby Lane</a>, named after its location just across from Nundah Village shopping mall, will bring 84 one, two, and three-bedroom apartments to the heart of Nundah.

To find out more about Danby Lane, I caught up with GVG Director Sam Gardner to chat about the project.

<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/ThaxGiZS5Yw?si=9N-62LCAn2NTNt5j" title="YouTube video player" width="560"></iframe>

From the outset, Gardner made it clear that Danby Lane was about more than bricks and mortar — it was about trust.

“Nundah’s probably got one of the strongest communities we've ever encountered,” Gardner said. “They like to be included or brought along on the journey of things like this.”

[smartcode_project:default project_id=112531 project_image_fid=320117]

Gardner described a three-year process of community engagement prior to construction, including face-to-face consultations and on-site information stalls.

“There is and remains a negative connotation behind development,” Gardner said. “There is this sense that the developer is bullying their way in, taking a piece of land and making a huge amount of profit on it. We really wanted to change that perception in Nundah.”

It’s a strategy that appears to have worked. While Nundah residents have previously voiced strong opposition to new developments in the area, Danby Lane progressed with community support.

[smartcode_project:default project_id=112531 project_image_fid=340186]

&nbsp;

“We're quite proud that we've become the builder-developer of choice in Nundah,” Gardner said. “Our headquarters is currently in another building we developed 10 years ago.”

At street level, Danby Lane will include six retail and commercial tenancies. GVG is actively working to attract operators that will complement the existing neighbourhood offer.

“One of the main things we target in these sites is the walkability score, the convenience,” Gardner said. “We are doing a lot of work in the design of the retail space at the bottom of Danby to get some more slow-down restaurants included.”

[smartcode_project:default project_id=112531 project_image_fid=320114]

This aligns with broader trends in suburban intensification, where residential density is paired with retail amenity and improved public interface.

With 84 residential apartments atop two levels of commercial and retail space, Danby Lane is designed with a mix of buyers in mind.

GVG reports interest from a range of buyer groups, particularly downsizers and local residents seeking to remain in the area without the upkeep of a standalone home.

“We're looking at people who don't necessarily want to move out of the area that they love,” Gardner said.

[smartcode_project:default project_id=112531 project_image_fid=340133]

The location is also attracting buyers who travel frequently.

“Being in between the Brisbane CBD and the airport really has a good opportunity there to target people who travel a lot. We have received a number of leads and people interested in buying for that reason,” he noted.

[smartcode_project:default project_id=112531 project_image_fid=340194]

Danby Lane marks the latest in a series of developments by Gardner Vaughan Group across South East Queensland.

Construction of Danby Lane is now underway, with completion anticipated in 2027.

[smartcode_project_cta:default project_id=112531]

From the outset, GVG Director Sam Gardner made it clear that Danby Lane was about more than bricks and mortar — it was about trust.

Why Danby Lane in Nundah is more than just a project for Gardner Vaughan Group: Five minutes with Sam Gardner

The Allan Labor Government will deliver more homes for young people, families and downsizers around 50 train stations and tram stops in Melbourne’s inner suburbs.

In an expansion of the Government’s Activity Centre program, Premier Jacinta Allan and Minister for Planning Sonya Kilkenny visited Middle Brighton Station today to announce the station will form the heart of one of 50 new ‘train and tram zone’ Activity Centres to help deliver more than 300,000 additional homes across Melbourne by 2051.

The new ‘train and tram zones’ encourage more homes around high-frequency train lines – with the first 25 announced today focusing on stations that benefit from the Metro Tunnel and the well-serviced Frankston, Sandringham, Belgrave/Lilydale and Glen Waverley Lines.

Premier Jacinta Allan&nbsp;said building more homes around 50 inner-suburban train stations means young people have more opportunity to rent or buy a place that’s directly connected to public transport.

“I know it won’t fix everything, but it will deliver more homes and new life to inner suburbs that are full of jobs, transport and services – where young buyers and renters are currently locked out.”

[smartcode_project:default project_id=12457 project_image_fid=217233]

Melbourne’s train network has completely transformed over the last 10 years, with more services, more than 50 new or upgraded stations, 84 level crossings gone for good, more to go – and the Metro Tunnel on its way next year.

<ul>
	<li>Seven centres connected to the new Metro Tunnel will enjoy a service boost on new trains – Carnegie, Hughesdale, Murrumbeena, Oakleigh, Middle Footscray, West Footscray and Tottenham Stations. 
	&nbsp;</li>
	<li>Six centres along the Belgrave/Lilydale Line (and the existing Camberwell and Ringwood activity centres) benefit from 5-minute peak services: Hawthorn, Glenferrie, Auburn, Blackburn, Nunawading and Mitcham Stations. 
	&nbsp;</li>
	<li>On the Frankston Line, four centres are located at Toorak, Hawksburn, Armadale and Malvern Stations. All level crossings on this line will go, and trains will return to the City Loop when the Metro Tunnel opens. 
	&nbsp;</li>
	<li>On the Sandringham Line, where eight trains per hour run during peak times, four centres are located at North Brighton, Middle Brighton, Hampton and Sandringham Stations. 
	&nbsp;</li>
	<li>On the Glen Waverley line, where nine trains per hour run during peak times, centres are located at Tooronga Station, Darling Station, plus a combined centre covering both Gardiner and Glen Iris Stations. 
	&nbsp;</li>
	<li>One centre, Toorak Village, is a built-up area along the Route 58 tram. This centre plus Middle Footscray are classified as smaller ‘neighbourhood activity centres’ to plan for more modest growth.</li>
</ul>

The locations for the remaining 25 of 50 ‘train and tram zone’ Activity Centres will be announced in late 2024 with the release of Plan For Victoria – a comprehensive plan to support the future of every community in the state.

[smartcode_project:default project_id=112375 project_image_fid=250357]

All but one of the first 25 of 50 centres are based directly on train stations and all are serviced by trains, following community feedback on the 10 draft Activity Centre Plans emphasising the importance of transport connections.

The 25 centres will be delivered in two tranches over the next 12 months, with timelines to be communicated clearly. The process for all 50 new centres is likely to be complete by 2026.

The 50 new centres add to the 10 initial Activity Centres in Broadmeadows, Camberwell, Chadstone, Epping, Frankston, Moorabbin, Niddrie, North Essendon, Preston and Ringwood – but the plans won’t be the same, because every community is different.

"Activity Centre planning is about building more opportunities and better communities by setting clear expectations for long-term growth, giving the community a say early, and streamlining planning to unblock home building," the VIC Government stated.

"Overall, the vision for train and tram zones is for taller buildings in the immediate ‘core’ at the station, with gentler, scaled height limits and more low-rise apartments and townhouses alongside existing houses in the walkable catchments surrounding."

&nbsp;

The Activity Centre Pilot Program was announced in Victoria’s Housing Statement. Alongside delivering 13,300 new social and affordable homes, and Australia’s largest housing project – the Suburban Rail Loop and its six housing precincts.

Minister for Planning, Sonya Kilkenny, said the program is planning for Melbourne's future.

“This isn’t about overnight change – this is about incremental change that sets Victoria up for the next generation, so we can have more opportunities for young people and better communities for everyone," Kilkenny said.

“Many of these communities have never had a formal plan for their future before, and this process will enhance what’s special about these suburbs while delivering more homes near transport, shops, schools, services and parks.”

The Allan Government has also just announced it is <a href="/news/vic/vic-government-slashes-stamp-duty-for-off-the-plan-property-buyers-savings-available-immediately-oct-2024">removing stamp duty in full for off the plan buyers for 12 months</a>.

Joel Robinson

50 new ‘train and tram zone’ activity centres to encourage new apartment development across Melbourne

Is now the best time to purchase an off the plan apartment?

Recent data released from CBRE suggests new apartments are set to get more expensive, with CBRE forecasting prices could jump by as much as 20 per cent by the end of 2026.

CBRE is forecasting build prices are forecast to grow 23 per cent by 2026, as supply tightens to around 45 per cent below pre-pandemic completion rates over the next five years.

CBRE’s Pacific Head of Research Sameer Chopra said newly built apartments are commanding a premium price compared to older stock.&nbsp;

“These premiums are justified by changing consumer expectations around amenities, like building security, lift access, flooring to rooftop gardens and gyms, which typically come with newer builds,” Chopra said.

New one-bedroom apartments are delivering a 16 per cent premium compared to older apartments, new two-bedroom apartments are at a 30 per cent premium, and it’s 45 per cent increase for newly built three-bedroom apartments.&nbsp;

Urban.com.au CEO, Mike Bird, says we are seeing the gap between off the plan and established units continue to grow.

"Historically there hasn't been much backwards movement in the cost structure that drives new apartment pricing, so that suggests the only way the market can unlock the supply is by the price of established growing through increase lending capacity driven by the upcoming rate cut cycle."

<img alt="Premium for new build apartments" data-entity-type="file" data-entity-uuid="65399013-dea0-4b8c-b2a3-180126e3701d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Chart%20-%20premium%20for%20new%20built%20apartments.jpg?VersionId=6oTGh4Z4BAskXgYCJa1jRWZ7_Zu1ip64" />

The report forecasts rents will grow by 25 per cent ($170 per week) between 2024 and 2029 across 59 suburbs in Australian capital cities. By 2029 it’s predicted the rent for a two-bedroom apartment will exceed $600 per week across 90 per cent of precincts.

<h2>The Supply Factor</h2>

CBRE’s Apartment Vacancy and Rent Outlook 2H 2024 estimates over the next 10 years, demand for housing is expected to benefit from a combination of population growth (+3.9 million), employment growth (+2.6 million) and rising income (+$36,000).

In terms of supply, delivery of new apartments is expected to be around 50,000 per year from 2025 to 2029, but population growth is expected to require an apartment supply of approximately 75,000 per year to avoid further falls in vacancy.&nbsp;

In Sydney, apartment delivery is expected to average 12,100 per year from 2025 to 2029, well below the 30,000 average demand for housing stock per year. In the next three years, city-wide vacancy is expected to fall from 2.2 per cent to 1.5 per cent.

Apartment delivery in Melbourne is expected to average 8,700 per annum over 2025-2029, nearly 35 per cent below Sydney, however demand for housing stock is likely to average 37,000 per year over the next five years. The supply and demand inbalance should continue to drive down city-wide vacancy rates from 1.8 per cent to 1.4 per cent, CBRE suggests.

Brisbane's demand for housing stock is likely to average 18,000 per year, but apartment delivery is only expected to be 4,200 per year which should drive vacancy rates from 1.5 per cent to 0.9 per cent.

<h2>The Demand Factor</h2>

CBRE's Q3 2024 Residential Valuer Insights revealed that 43 per cent expect apartment value growth over the next 12 months, with the highest conviction in Perth and Brisbane metro.

<img alt="Demand" data-entity-type="file" data-entity-uuid="87b363ed-083e-468e-968b-5970e70a9fb4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202024-10-10%20at%209.51.23%E2%80%AFAM.png?VersionId=RUJC0rPMEnFYZ2U7USz83Uh.6k9hqAPq" />

CBRE's forecast suggest 60 per cent of new supply purchases will be from owner-occupiers. Over the past 25 years, the demographic has comprised 64 per cent of all purchases.

They say that of the investor market, they see a growing share moving across to institutional build-to-rent sector, which will comprises around 22 per cent of new apartment supply, or 11,000 per year, by 2029.

Urban.com.au CEO, Mike Bird, says we are seeing the gap between off the plan and established units continue to grow, but a the rate cut cycle will change that


New apartment prices could jump 20 per cent by 2026 as supply forecasts tighten - is now the time to invest off the plan?

A difficult apartment development environment across Australia will mean under-supply levels worsen over the next few years and this lack of available stock will force buyers into the pre-commitment market and to pay more for off-the-plan apartments to compensate for higher construction costs.

That's the view from real estate services firm JLL, whose Apartment Market Overview: Australia Q1 2024 Report found apartment supply levels were already falling well short of underlying demand and the situation will only worsen as demand continues to rise and supply stays moderate.

Leigh Warner, JLL’s Head of Residential Research – Australia, said there are many factors supporting growth in apartment demand across Australia.

“Affordability is now being stretched in all our major cities. While it has been the case for a long time that buyers would have to start their housing journey and often stay in an apartment longer in <a href="/new-apartments/sydney-nsw">Sydney</a> because of affordability, the rest of the country is rapidly catching up and this is boosting underlying demand for apartments relative to the past,” Warner said.

“But this trend is being accelerated by current borrowing conditions. Borrowing capacity for most buyers has dropped enormously over the past 18 months and with dwelling prices continuing to rise over this period it has pushed detached houses well beyond the capacity of most first home buyers and indeed many investors.”&nbsp;

Despite positive underlying demand trends, we are building fewer apartments rather than more and conditions remain tough for developers, JLL’s Head of Residential Development Valuations, Bill Fatouros, says.

“Developers have faced one hurdle after another over recent years,” Fatouros said.

“First it was the dramatic slowing of domestic and foreign investor demand denting off-the-plan sales, then we had COVID hit and just as demand prospects improved recently, construction costs sky-rocketed and dented project feasibilities. But at some point, the worm has to turn quickly. There is now very little existing apartment stock available for sale and this means buyers will have no option but to buy off-the-plan and to pay the higher prices required to justify higher build costs."

JLL’s report notes that this is already happening at the higher end of the market for luxury boutique projects where downsizers have continued to drive strong demand.

“Downsizers have generally already done very well out of the housing market and the large amounts of equity they have accumulated means rising interest rates have not had the same impacts,&nbsp;Fatouros added.

Downsizers have been discerning buyers willing to pay the higher prices necessary to compensate for higher build costs in order to secure exactly what they want.

“We firmly believe it is inevitable that the same will happen across the broader apartment market and that a jump in pricing will have to happen to make mass-market projects viable. The recent acceleration in existing apartment price growth in many markets suggests this is getting closer to fruition."

<h2>Affordability the only constraint on rental growth</h2>

JLL’s report also highlights that with very little mass-market apartment stock being developed, there will not be any real supply relief for the already tight rental market where vacancy is already sitting at around one per cent across Australia.

“There are more Build-to-Rent (BTR) completions due over the next few years, particularly in <a href="/new-apartments/melbourne-vic">Melbourne</a>, but the numbers are still small compared to the drop in the overall apartment supply level and it will do very little to alleviate rental market pressures – even in Melbourne,” Warner said.

“The only real constraint we can see on rental growth over the foreseeable future is affordability. This is already being tested in some markets and we are already seeing tentative evidence of a slowing from the break-neck speed of the last few years. But over the medium-term we expect wage growth to become the speed limit for rental growth."

Supported by ongoing low supply levels, apartment pre-sales rates can do little else but rise strongly the next few years


Apartment pre-sales and prices set to rise: JLL

Prices in the Gold Coast off the plan apartment market will continue to increase over the next 12 months, Charter Keck Cramer forecast.

Charter Keck Cramer said in their <a href="/developments/gold-coast-qld">Gold Coast</a> State of the Market H2 2023 that until conditions stabilise and improve in the building sector, prices have to go up.

"Many recently launched projects are achieving strong sales and pricing results, especially those <a href="/news/qld/city-beat-march-2024-what-is-happening-in-the-gold-coast-off-the-plan-apartment-market">associated with well regarded builders</a>," the report read.

"A notable proportion of purchaser demand has come from interstate (predominantly NSW and VIC) given the lifestyle attraction and lower relative price points of the Gold Coast."

They noted that importantly in this cycle, foreign buyer activity has remained subdued which is very different to previous cycles which were underpinned by significant overseas buyer activity.

They said relative&nbsp;to other Australian cities in 2023, the Gold Coast’s apartment market showed more positive signs through robust sales and continued pricing growth. They added however that it is not without some key risks and challenges primarily in the building and construction space.

&nbsp;

<h2>Gold Coast Build Environment</h2>

Build costs and delivery times are a critical issue and risk for the Gold Coast market, CKC says, adding that some mainstream projects have become financially unviable due to the increase in labour and material costs.

"Many active projects are beachside and targeting premium price points and therefore new dwellings at the more affordable end of the scale are limited," CKC says.

"Infrastructure investment has turbo charged the cost of materials and labour, helping to position these as a key risk to the supply-side response. Paired with the cost of debt, the prospect of projects taking 50% longer to complete than pre-pandemic is eroding the feasibility of many projects in the pipeline and placing them on pause."

CKC says even&nbsp;on smaller projects, the stringent level of due diligence being undertaken by lenders towards builders is impacting the pace of funding.

<h2>Gold Coast Supply Metrics</h2>

In 2023 there were a total of 1,000 apartments launched to market, considerably lower than the 2,100 per annum average over the past decade.

The City Fringe and Central City Regions were the most active, accounting for 34 per cent and 30 per cent of launches.

Commencements in Gold Coast remained strong in 2023, bucking the trend of many cities across Australia.

In 2023, construction commenced on 2,100 apartments, a slight decrease than 2022 but well above the 10-year average of 1,900. Gold Coast’s City Fringe Region was the most active, accounting for more than 50 per cent of commencements.

<img alt="Supply" data-entity-type="file" data-entity-uuid="4f4c1c4c-4f28-468b-bbb6-3a9059e81ce5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202024-03-12%20at%2010.23.05%20am.png?VersionId=nJvkKGyg1i79Z0_UZD.rUzNNIJVzAFvv" />

In 2023, Gold Coast recorded 1,500 apartment completions, slightly higher than in 2022.

CKC says the coming 12 months will set a new peak for apartment supply in Gold Coast, with 2,700 apartments under construction and due to complete during 2024. That would mark a 46 per cent increase on the previous peak during 2020.

There is a total of 4,100 apartments currently under construction or being marketed and due to be complete between 2025-2026, however, a proportion of marketed projects are likely to be delayed given elevated project costs.

"While the increased completions forecast for the next 12-24 months poses an element of settlement risk (particularly for larger apartment schemes), strong recent price growth and low levels of foreign buyers has offset much of this risk. Furthermore, the low volume of residual stock within projects approaching completion poses little threat to those currently being marketed or soon to launched."

<img alt="GC" data-entity-type="file" data-entity-uuid="e3e7f0fe-35e7-4c15-8541-15f25e99ce46" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202024-03-12%20at%2010.23.52%20am.png?VersionId=Bf0848SkFZJU7kIBgxzY9lwPCqrSCC3W" />

<h2>2024 Property Outlook</h2>

CKC's analysis&nbsp;suggests that established stock will need to continue to reprice upwards.

"This will be followed by recently completed stock after which new off the plan stock will quickly reprice upwards across the market which offers the most affordable price points."

CKC's analysis of the Gold Coast’s housing market shows that the price gap between detached houses and established units is 44 per cent, a decline from 60 per cent over the past two years as demand has continued to funnel into the more affordable unit market.

"The Gold Coast has one of the most expensive housing markets in Australia and, quite simply, buyers need to make trade-offs should they wish to enter the for sale market with greater demand driven into the BTS apartment market."

&nbsp;

Gold Coast off the plan apartment market prices to continue to grow: Charter Keck Cramer

Iwan Sunito Unveils Vision for One Global Capital's Future Developments

In a recent interview with Apartments.com.au, Mike Bird sat down with Iwan Sunito, the CEO and founder of <a href="/developers/one-global-capital">One Global Capital</a>, to delve into the company's impressive background and its exciting vision for the future.

While <a href="/developers/one-global-capital">One Global Capita</a>l may seem like a new player, it's the rebranded face of Crown Group, a family office that has already delivered $4 billion worth of developments.

&lt;p&gt;&lt;iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/RKUijhaQ1-E?si=DFNp_PISd90TSNIJ" title="YouTube video player" width="560"&gt;&lt;/iframe&gt;&lt;/p&gt;

Background and Rebranding

Sunito clarified that <a href="/developers/one-global-capital">One Global Capital</a> is the fresh identity chosen to present his family office, formerly known as Crown International Investment. The rebranding, which took place in 2023, aligns with the philosophy of "One Vision, Infinite Possibilities", emphasising the global reach of the company. Sunito highlighted the intention to continue the legacy of successful projects, pushing boundaries in 2023 and beyond.

Upcoming Projects

With an impressive portfolio of almost $1.5 billion worth of developments in planning, <a href="/developers/one-global-capital">One Global Capital</a> is set to make its mark quickly on the Sydney off the plan apartment market. Sunito shared details about two major projects – a $1 billion, 300-apartment development in Macquarie Park and a groundbreaking $1.2 billion project in Chatswood. The latter is expected to be the largest of its kind, featuring an extraordinary design that aligns with <a href="/developers/one-global-capital">One Global Capital'</a>s commitment to excellence.

Target Audience and Urban Living Trends

Sunito discussed the evolving trend of urban living, noting that more people are gravitating towards city living. <a href="/developers/one-global-capital">One Global Capital </a>aims to tap into the local and global buyer markets. Sunito explained that they are targeting residents who seek high-rise living with extensive amenities, catering to both local buyers and the influx of migrants contributing to Australia's population growth.

Signature Amenity and Thoughtful Design

A key focus for One Global Capital has always been thoughtful design. Sunito, an architect by background, stressed the importance of creating an experience of space that goes beyond technology and style. He emphasised the need for buildings to be world-class, with an iconic and timeless design. Sunito shared the joy of seeing people positively respond to their buildings, reinforcing the psychological and physiological impact of well-designed structures.

The Future Vision

Looking ahead, Sunito expressed his commitment to pushing the boundaries of design, emphasising that great architecture contributes to a legacy beyond profitability. He highlighted the psychological value of buildings, noting that they should be designed to withstand the test of time and become iconic landmarks.

In closing, Sunito shared his excitement about the future, where One Global Capital is set to go public in the next five years. The company's focus remains on creating a green city for the future, reflecting their passion, purpose, and commitment to being more than just developers.

&nbsp;

Stay tuned for <a href="/developers/one-global-capital">One Global Capital</a>'s transformative projects, where innovation and care converge to shape the urban landscape.

In a recent interview with Urban.com.au, Mike Bird sat down with Iwan Sunito, the CEO and founder of One Global Capital, to delve into the company's impressive background and its exciting vision for the future. While One Global Capital may seem like a new player, it's the rebranded face of Crown International Investment, a family office that has already delivered $4 billion worth of developments.

Iwan Sunito unveils vision for One Global Capital's future apartment developments

In an exclusive interview, Apartments.com.au CEO Mike Bird sits down with Daniel Clarke, General Manager at Sherpa Property Group, to delve into the fascinating journey of Nexus, the sixth project under the renowned Perspective brand. Initially approved as a 14-level building, the project faced a twist when the courts overturned the decision. However, Clarke shares how this setback became an opportunity for redesign, resulting in what they believe is the best code-accessible development.

&lt;p&gt;&lt;iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/vTRw2CJauWI?si=XQSO5QL8qhCchg6c" title="YouTube video player" width="560"&gt;&lt;/iframe&gt;&lt;/p&gt;

[smartcode_project_cta:default project_id=108324]

Clarke expresses his excitement about the redesigned project, emphasising its enhanced functionality and aesthetic appeal. The article highlights the positive response from existing buyers, who, despite the project's initial hiccups, have shown confidence in Sherpa Property Group's commitment to delivering an exceptional product.

[smartcode_project:default project_id=108324 project_image_fid=232460]

As the conversation unfolds, Clarke sheds light on the buyer demographic, emphasising the spaciousness of the apartments, which range up to 200 square meters. The mix includes three to four-bedroom units, attracting a local market, down-sizers, and even interest from interstate buyers, particularly from Sydney and Melbourne.

The article concludes with insights into Sherpa Property Group's development philosophy under the Perspective brand. With a focus on the "less is more" approach, Clarke explains how their design strategy evolved based on feedback and interest generated by earlier projects. The Perspective brand's consistent emphasis on larger, more livable spaces resonates with buyers and reflects the company's commitment to creating unique and appealing coastal living experiences.

[smartcode_project:default project_id=108324 project_image_fid=232523]

Prospective buyers are encouraged to explore the recently finished display suite at Perspective on Albatross, showcasing the company's commitment to quality and innovative design. The interview offers a unique perspective on Sherpa Property Group's approach, providing potential buyers with valuable insights into the developer's track record and commitment to delivering outstanding coastal living experiences.

[smartcode_project_cta:default project_id=108324]

[smartcode_project:default project_id=108324 project_image_fid=231829]

&nbsp;

Join us in this insightful interview with Daniel Clarke, the General Manager at Sherpa Property Group, as he discusses the exciting journey of the Nexus project, the sixth under the Perspective brand.

Market Insights

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News