<p>A full-scale Sky Homes prototype apartment for <a href="https://www.apartments.com.au/new-apartments/zeste-at-the-orchards-norwest-104-fairway-drive-norwest-nsw-2153">Zeste</a> has been opened by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a>, offering buyers a look at the final residential release within The Orchards masterplan in <a href="https://www.apartments.com.au/developments/norwest-nsw-2153">Norwest</a>.</p>

<p>The prototype launch coincides with buyer demand for larger apartment living continuing across Sydney’s Hills District.</p>

<p>David Lee, Sales Manager, Apartment &amp; Mixed-Use Developments at Sekisui House Australia said it was evident from the preceding four stages at The Orchards that a large number of buyers were local owner occupiers or downsizers specifically looking for oversized apartments with additional living spaces.</p>

<p>“The majority of buyers prefer to touch, feel and physically sight a full-scale completed apartment, rather than imagining the living spaces from floor plans," Lee says.</p>

<p>"The prototype apartment provides greater clarity and buyer confidence. We expect this will increase sales momentum for Zeste and the Sky Homes in particular.”</p>

<p>[smartcode_project:default project_id=150510 project_image_fid=351878]</p>

<p>Positioned within Stage 5’s Zeste project, the Sky Homes form part of the final opportunity to purchase within the award-winning master-planned community, which will ultimately deliver approximately 1,300 apartments.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, Zeste comprises two residential buildings, Essence and Eden, providing 209 apartments surrounded by extensive landscaping, resort-style amenities and community spaces.</p>

<p>Ben Pomroy, Principal at Rothelowman said Zeste explores a reinvention of the traditional house, in the orchard, synthesising the nostalgic story of the orchard homestead of yesteryear with a contemporary aesthetic inspired by the landscape.</p>

<p>“Natural light and ventilation are key to the design, contributing to a higher quality of life at the human scale. Across all Rothelowman projects, our ethos of ‘a generous eye for life’ drives our consideration of the human experience as the central point of focus of our design process.”</p>

<p>Pomroy says a&nbsp;notable design element is the cathedral glass light boxes incorporated in the joinery, inspired by the idea of wandering the orchard homestead with a lantern in hand, something familiar and nostalgic.</p>

<p>"We took this narrative and gave it a contemporary twist that is both beautiful and functional, creating unique features that unify the kitchen and bathrooms design.”</p>

<p>[smartcode_project:default project_id=150510 project_image_fid=351874]</p>

<p>In addition to the two residential buildings, Zeste comprises a single-story community amenity pavilion nestled in the landscape between Essence and Eden.</p>

<p>“The communal pavilion is a distinctive feature designed to foster a deep sense of community, with nature at its heart," Pomroy added.</p>

<p>"Whether it is watching the football grand final or hosting a family BBQ, the pavilion is designed as a place where residents can create memorable moments with friends, family and neighbours.</p>

<p>Since launching Essence, the first building within Zeste, buyer demand has remained strong with more than 30 per cent of residences already sold. Sky Homes have accounted for nearly 40 per cent of all sales achieved since launch.</p>

<p>“Purchasers are responding positively to the oversized layouts, diverse apartment configurations and the vast range of community facilities that will be available at completion,”David Lee noted.</p>

<p>Zeste Sky Homes represent approximately 35 per cent of the entire Stage 5 offering and are available across both Essence and the yet-to-launch Eden building. Prices for the Sky Homes range from $1,135,000 with one car space through to $1,500,000 for two car spaces.</p>

<p>Apartments across the broader Zeste release start from approximately $715,000, with generous floorplans ranging from 59 to 144sqm. Select residences also feature integrated ‘Max’ spaces, designed to function as flexible areas for home offices, children’s playrooms or additional storage.</p>

<p>Zeste also continues Sekisui House Australia’s sustainability partnership with Altogether Group, delivering integrated water, power and data services alongside passive design initiatives including cross-ventilation, landscaping and water features.</p>

<p>Early purchasers are currently able to access a selection of premium upgrade options, with VIP buyers receiving one complimentary upgrade package. A 2.5 per cent deposit is available for a short time.</p>

<p>Sekisui recently commenced its pre-construction phase. They are expecting an early 2028 completion of Zeste.</p>

<p>[smartcode_project_cta:default project_id=150510]</p>


Joel Robinson

Zeste Sky Homes prototype opens as buyer demand surges for oversized apartment living

<p>Having recently announced its entry into the booming Gold Coast new apartment market with <a href="https://www.apartments.com.au/new-apartments/aere-chevron-island-18-20-mawarra-street-surfers-paradise-qld-4217">Aere Chevron Island</a>, developer Martello™ is offering generous stamp duty savings for buyers before June 30.</p>

<p>Martello™ says the incentive creates a more accessible entry into premium apartment living.</p>

<p>"While incentives in property are nothing new, today’s stamp duty contributions arrive at a particularly important moment," the developer says.</p>

<p>"Buyers are not only seeking quality homes and strong locations; they are also looking for smarter financial entry points. Reducing or offsetting stamp duty can represent tens of thousands of dollars in savings - funds that can instead be directed toward furnishing a home, reducing mortgage pressure, or simply providing peace of mind during the transition into ownership."</p>

<p>[smartcode_project:default project_id=143932 project_image_fid=367517]</p>

<p>Aere is one of the more boutique new developments on Chevron Island, with just 33 apartments across 18 storeys on Mawarra Street</p>

<p data-end="695" data-start="463">The developer has placed a strong emphasis on wellness, briefing architecture firm Raunik Design to embed this philosophy into the project.</p>

<p data-end="1094" data-start="697"><a href="https://www.apartments.com.au/developers/martello">Martello™</a>&nbsp;has positioned Aere as a continuation of its human-centric development approach, with a focus extending beyond amenity to the fundamentals of layout, natural light, and spatial planning.</p>

<p data-end="1094" data-start="697">[smartcode_project:default project_id=143932 project_image_fid=368446]</p>

<p data-end="1094" data-start="697">To bring a heightened level of confidence to the project, <a href="https://www.apartments.com.au/developers/martello">Martello™</a>&nbsp;has already appointed Promax Construction to build the tower. They are expected to start construction in the coming months.</p>

<p>Martello™ says that in any market cycle, confidence matters.</p>

<p>"Buyers who may have been waiting on the sidelines are now reassessing their timing as developers and vendors introduce meaningful incentives designed to support decision-making. For owner-occupiers, it creates an opportunity to secure a premium residence with reduced upfront costs. For investors, it can improve the overall acquisition equation at a time when rental demand remains exceptionally strong across many key markets."</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=143932 project_image_fid=367507]</p>

<p>Aere offers a mix of two-, three-, and four-bedroom apartments, the latter of which occupy half a flor. These layouts prioritise separation between living and sleeping zones, along with increased privacy and storage, features more commonly associated with detached housing than traditional apartment product.</p>

<p data-end="2059" data-start="1790">Aere’s private resident amenity spaces centre on wellness. A rooftop level will incorporate a heated swimming pool, sauna and spa, alongside a residents’ lounge, dining areas and barbecue spaces, while additional shared facilities throughout the building include a gym and yoga area.</p>

<p>[smartcode_project:default project_id=143932 project_image_fid=367515]</p>

<p>&nbsp;</p>

<p>"What we are seeing now is a market that rewards readiness," Martello added.</p>

<p>"Buyers who are informed, financially prepared, and willing to act decisively are finding opportunities that may not exist once conditions shift again. Incentives such as stamp duty contributions are typically limited in duration and allocation, particularly within tightly held developments where demand remains high.</p>

<p>&nbsp;</p>

<p><em>Offer available on selected residences at Aere Chevron Island only. Stamp duty contribution provided by the developer at settlement and cannot be exchanged for cash or combined with any other offer unless approved by the developer. Offer valid for contracts signed on or before 30 June 2026. The developer reserves the right to amend or withdraw the offer at any time without notice. Terms and conditions apply.</em></p>

<p><em>[smartcode_project_cta:default project_id=143932]</em></p>


Martello™ offers limited time stamp duty concessions at Aere Chevron Island

<p data-end="200" data-start="0">New development specialists Lachlan Cottee and Ben Dalgleish have unveiled their new development firm, Dalcott, following several successful projects delivered under the Pyco banner across the region.</p>

<p data-end="376" data-start="202">Pyco is currently delivering Atelier in nearby West End, Nouveau in Albion, and Onde at Kirra, its debut Gold Coast apartment development in the booming Kirra Beach precinct.</p>

<p data-end="583" data-is-last-node="" data-is-only-node="" data-start="378">Its first plans under the new Dalcott banner are in South Brisbane, which has been Brisbane’s most enquired-on suburb so far in 2026, while neighbouring West End has also continued to record strong demand.</p>

<p data-end="1091" data-start="626">The developer already has approval for an 11-storey building with 65 apartments on Browning Street, however has recently acquired the adjoining 910 sqm site at the rear, creating a combined 2,746 sqm footprint that will now allow for two 11-storey buildings with 92 large-scale apartments, a configuration Cottee and Dalgleish have focused on across their local portfolio.</p>

<p data-end="1244" data-start="1093">The project, known as <a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a>, will comprise 84 three-bedroom apartments, 16 of which will include an additional multipurpose room, and just eight two-bedroom residences.</p>

<p data-end="1383" data-start="1246">DAH Architecture has led the design of Marrone, which will include more than 330 sqm of communal open space and rooftop recreation areas.</p>

<p data-end="1383" data-start="1246"><img alt="Marrone" data-entity-type="file" data-entity-uuid="7eeea1a0-be23-47c8-80fb-3409428241fd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-21%20at%209.36.38%E2%80%AFAM.png?VersionId=pZW7o.tB7oJovYCRIFSxrZbMr6QdpHy." /></p>

<p data-end="1473" data-start="1385">Cottee told Apartments.com.au the project reflects a gap in Brisbane’s apartment market.</p>

<p data-end="1571" data-start="1475">"It is an area we know well with Atelier, another development which focuses on large apartments, less than 300 metres away," Cottee says.</p>

<p data-end="1824" data-start="1573">"There's limited supply of large-scale apartments of this size in a single building in Brisbane. The majority of apartments in this category are in considerably smaller buildings, on the water, and are only really accessible to the deepest of pockets.</p>

<p data-end="1953" data-start="1826">"Marrone will offer the same size and scale, but with greater amenity and at a much more realistic price point for the market."</p>

<p data-end="2256" data-start="1955">The architectural approach reflects the continued evolution of South Brisbane’s higher-density residential character. Renders show a heavily landscaped façade composition with curved balconies, textured brickwork, deep recesses, and integrated planting aimed at softening the scale of the twin towers.</p>

<p data-end="2486" data-start="2258">The revised proposal builds on the design narrative established in the original scheme. In the earlier submission, Gatehouse Architects described the project as a continuation of Browning Street’s long-term urban transformation.</p>

<p data-end="2691" data-start="2488">“The proposal echoes the spirit of early developments like Watson Terrace (built in 1888), by contributing to the growth and diversification of the local population,” the original design statement noted.</p>

<p data-end="2918" data-start="2693">“Just as Watson Terrace played a role in the area’s early gentrification, this development continues that trajectory, delivering contemporary housing that addresses the evolving needs of South Brisbane’s expanding community.”</p>

<p data-end="3297" data-start="3024">The updated proposal, designed by DAH Architecture, spans a 2,746 sqm corner site with frontages to Browning and O’Connell Streets. The development will comprise two 11-storey residential buildings delivering 92 apartments, replacing the previously proposed 65-unit scheme.</p>

<p data-end="3673" data-start="3299">The apartment mix has shifted further toward larger owner-occupier residences, continuing Dalcott’s established strategy across South East Queensland. The plans include 68 three-bedroom apartments, 16 three-bedroom apartments with multipurpose rooms, and eight two-bedroom residences. Two basement levels will provide 142 car spaces, alongside bicycle parking for 115 bikes.</p>

<p data-end="3950" data-start="3675">The larger Marrone proposal arrives amid sustained redevelopment momentum across South Brisbane and the wider Kurilpa precinct, where developers are increasingly targeting owner-occupiers seeking larger apartments close to the CBD, cultural precincts, and riverfront amenity.</p>

<p data-end="4211" data-start="3952">The site sits within walking distance of South Bank, the Queensland Performing Arts Centre, Brisbane State High School, and several major transport connections, while nearby Fish Lane and West End continue to drive demand for higher-end inner-city apartments.</p>

<p data-end="4458" data-is-last-node="" data-is-only-node="" data-start="4213">Cottee is expecting Marrone to launch around August with Realm Projects.</p>


Exclusive: Dalcott doubles down on South Brisbane with twin-tower Marrone plans

<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:9894702f-d5ab-4186-930d-8f794421c3c4-0" data-turn-id-container="request-WEB:9894702f-d5ab-4186-930d-8f794421c3c4-0" dir="auto">
<p data-end="437" data-start="182"><a href="https://www.apartments.com.au/developers/doma-group">DOMA Group</a> has unveiled plans for Newcastle Quay, a major waterfront precinct set to reshape Newcastle’s harbourfront and further cement the city’s evolution into one of Australia’s fastest-growing urban destinations.</p>

<p data-end="707" data-start="439">Positioned on a prominent site within the Honeysuckle Precinct, Newcastle Quay will span both sides of Honeysuckle Drive, connecting directly to the Foreshore Promenade and sitting within walking distance of Newcastle Interchange.</p>

<p data-end="1068" data-start="709">The mixed-use precinct is planned to include around 1,000 apartments, more than 28,000 sqm of commercial office space, 6,000 sqm of retail, and a 180-room hotel anchored by a 500-seat conference and exhibition centre, a move expected to significantly lift Newcastle’s ability to attract major business and tourism events.</p>
</section>

<p><img alt="DOMA Group unveil Newcastle’s future with transformative Newcastle Quay Precinct" data-entity-type="file" data-entity-uuid="0642ca09-67cc-4920-8a7e-d18df9729b4e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/%3D.png?VersionId=CnDmZxQnOV5LN0ePu7jaFBXC9tPGTrWm" /></p>

<p data-end="1381" data-start="1070">The proposal builds on DOMA’s growing Newcastle pipeline, where the developer has already delivered 866 apartments and more than 19,000 sqm of commercial and retail space since entering the market in 2013. A further $2 billion pipeline is also in the works across the city.</p>

<p data-end="1756" data-start="1383">The masterplan and executive architecture are led by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, with building concepts developed alongside Stewart Architecture, Architecture AND and Curious Practice, and landscape design by <a href="https://www.apartments.com.au/landscape-architect/turf-design">Turf Design Studio</a>. More than 11,000 sqm of open space is planned, including a new waterfront park known as Honeysuckle Green, upgrades to Tree of Knowledge Park, and new pedestrian and cycling links throughout the precinct.</p>

<p data-end="2022" data-start="1758">At the centre of the development will be the heritage-listed Wickham School of Arts, which DOMA plans to reposition as the civic and cultural heart of the precinct through restaurants, bars, events and public gathering spaces.</p>

<p data-end="2254" data-start="2024">The broader vision is to create a genuine day-to-night precinct, blending residential, hospitality, retail, commercial and cultural uses in a way Newcastle has yet to experience at this scale.</p>

<p data-end="2407" data-start="2256">DOMA Group Managing Director Jure Domazet said the aim was to create a precinct that becomes synonymous with Newcastle itself.</p>

<p data-end="2644" data-start="2409">“Our vision is to create a precinct that not only delivers high-quality commercial, residential, and cultural spaces, but also defines Newcastle’s waterfront for generations to come,” Domazet said.</p>

<p data-end="2752" data-start="2646">DOMA’s Chris Farrington said the project would fundamentally change how Newcastle is perceived nationally.</p>

<p data-end="2868" data-start="2754">“Newcastle Quay is more than a waterfront precinct, it is a national announcement for this city,” Farrington said.</p>

<p data-end="3111" data-start="2870">“A world-class Conference and Exhibition Centre will open Newcastle and the Hunter Region to a national and international audience for the first time, delivering something this city has long deserved.”</p>

<p data-end="3360" data-is-last-node="" data-is-only-node="" data-start="3113">The project is expected to generate more than 4,000 full-time equivalent jobs and act as a major economic driver for the Hunter region through tourism, business events, hospitality and commercial investment.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>Minister for Planning and Public Spaces Paul Scully said the final parcel of harbourfront land will be a "true mixed-use precinct destination that includes housing, hospitality and entertainment, commercial spaces, retail, economic and social outcomes."</p>


DOMA Group unveils 1,000-apartment Newcastle Quay precinct

<p data-end="262" data-start="143">ASX-listed developer Stockland is continuing to ramp up its return to the apartment market.</p>

<p data-end="451" data-start="264">In late 2024, <a href="https://www.apartments.com.au/developers/stockland">Stockland</a> announced it would resume apartment development after a 13-year absence, launching with Stanton Place in Rosebery, a 144-apartment project now under construction.</p>

<p data-end="560" data-start="453">Last week, the developer unveiled plans alongside the NSW Government for a <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-nsw-gov-unveils-plans-for-3-300-home-waterloo-south-renewal">3,300-home precinct in Waterloo</a>.</p>

<p data-end="797" data-is-last-node="" data-is-only-node="" data-start="562">Now, Stockland has shifted its focus in St Leonards, lodging a State Significant Development Application (SSDA) to replace an approved 42-storey office tower with a 52-storey residential development comprising more than 500 apartments.</p>

<p><img alt="Stockland" data-entity-type="file" data-entity-uuid="8979095e-9072-432b-a7da-58b180cf994d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-20%20at%204.27.36%E2%80%AFPM.png?VersionId=_jbRXYOafCSHjwsz.yQCNIymMyCj8zkF" /></p>

<p>An existing 14-storey commercial office building would make way for a 264.5-metre tower designed by <a href="https://www.apartments.com.au/architects/bates-smart">Bates Smart</a>. The project would deliver 538 apartments, including 30 affordable housing units, alongside retail and commercial uses at the podium and ground plane.</p>

<p>It will rise from&nbsp;<a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">601 Pacific Highway</a>, a prominent 2,844 sqm triangular site adjoining Mitchell Plaza and fronting Pacific Highway.</p>

<p>The development is being pursued under the Housing Delivery Authority pathway after Stockland’s proposal was declared State Significant Development earlier this year.</p>

<p><img alt="First look: Stockland plans 52-storey mixed-use tower with 538 apartments in St Leonards" data-entity-type="file" data-entity-uuid="67f40f35-0458-47ab-80c0-a4e98a31838a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%201.png?VersionId=rxXe3njr.auuGDuiR0k42uI8Zr4K.gZA" /></p>

<p>The apartment mix includes 217 one-bedroom apartments, 191 two-bedroom apartments, 122 three-bedroom apartments, and eight four-bedroom residences. Six basement levels would accommodate 300 car spaces, bicycle parking, loading areas, and building services.</p>

<p>Bates Smart said the project has been shaped around a series of urban design principles intended to improve the pedestrian experience and respond to the evolving character of St Leonards.</p>

<p>“With a boundary length of almost 75m along Pacific Highway and 70m along Atchison Street to the north, complying simply with the LEP envelope and required setbacks would result in a very wide tower form on the skyline,” the architects noted in the Design Report.</p>

<p>“We propose breaking the tower form into two defined volumes rather than a singular form.”</p>

<p>The podium has similarly been articulated into separate forms to reduce perceived bulk and create a finer-grain response to Mitchell Plaza and Atchison Street. Retail tenancies would activate the lower levels, while commercial space is proposed across the podium floors.</p>

<p><img alt="First look: Stockland plans 52-storey mixed-use tower with 538 apartments in St Leonards" data-entity-type="file" data-entity-uuid="90149990-0551-40d2-bd48-14b69a015d12" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%202.png?VersionId=MJC2KIIWFvU9FPGr3IVq09gkRN_gX3m8" /></p>

<p>The design also places a significant emphasis on communal amenity and environmental performance. Residents would have access to landscaped terraces, wellness areas, flexible workspaces, and rooftop communal facilities, while the all-electric building is targeting an average 7-star NatHERS rating. Bates Smart said the project incorporates passive design measures including natural ventilation, integrated shading, and lightweight façade systems.</p>

<p>Planning documents note the site is around 350 metres from St Leonards Station and 400 metres from the metro entrance, placing it within one of Sydney’s most connected emerging residential precincts.</p>

<p>The project arrives amid a wave of large-scale redevelopment proposals reshaping the St Leonards and Crows Nest skyline. Several nearby sites have recently been approved, lodged, or declared under the Housing Delivery Authority pathway as the precinct absorbs significant residential density uplift tied to transit-oriented development policies.</p>

<p><img alt="Stockland" data-entity-type="file" data-entity-uuid="7805bd7c-dfd7-4b35-8e15-ec4a8bf8e61b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-20%20at%204.27.26%E2%80%AFPM.png?VersionId=iY12K2m2bQ6EeDnshqfZC9rbLx_oEugP" /></p>

<p>Bates Smart’s report describes St Leonards as transitioning away from its historical commercial identity toward a more mixed-use urban environment.</p>

<p>“In recent years, the character of St Leonards has started to evolve, driven by new development trends along the Pacific Highway corridor,” the report said.</p>

<p>“These projects have increasingly focused on residential accommodation, marking a shift from its purely commercial roots.”</p>

<p>Sekisui House Australia is currently selling Waterstone down near Newlands Park, in a pocket being branded "St Leonards South." Hyecorp recently completed Audrey in the same pocket.</p>


First look: Stockland plans 52-storey, 538-apartment St Leonards tower

<p>Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.</p>

<p>They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;</p>

<p>Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.</p>

<p>They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" /></p>

<p>Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor</p>

<p>Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" /></p>

<p>Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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<p><span style="line-height: 1.3em;"><span>This week’s preliminary clearance rate of 70.7% across a total of 2,064 reported auctions represents the third lowest clearance rate so far this year across the combined capital cities, down further from last week when the final clearance rate was recorded at 71.2%. </span></span></p>
<p><span style="line-height: 1.3em;"><span>It will be interesting to see if there is any upwards revision as the remaining results are reported. There were 2,493 capital city auctions held this week, compared to 2,654 last week and 2,530 at the same time last year. Over the past eight weeks, this is the fourth week where more than 2,400 auctions have been held across the combined capitals, while over the same 8 week period one year ago, there was only one week where this volume of auctions was seen.</span> </span></p>
<p><a href="/images/2015/09/21/20150921-Capital-city.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><img src="/images/2015/09/21/20150921-Capital-city.jpg" alt="" width="845" height="635"></p>
<p><strong>Melbourne’s</strong><span> preliminary clearance rate this week is 73.3 per cent, down from 74.3 per cent the previous week and higher than one year ago, when 72.1 per cent of auctions were successful. 1,091 residential properties went to auction in Melbourne this week, showing volumes are slightly lower than over the previous week (1,189) and one year ago (1,221). This week, Melbourne’s strongest performing sub-region was the Outer East, where 78.4 per cent of the 74 reported auctions were sold. On the other end of the scale was the Mornington Peninsula, where a lower 60.6 per cent of the 33 reported auctions cleared.</span></p>
<p><a href="/images/2015/09/21/20150921-Melbourne.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/21/20150921-Melbourne.jpg" alt="" width="912" height="611"></span></p>
<p> </p>
<p><span>In </span><strong>Sydney</strong><span>, there has been little change after recording the lowest clearance rate for the year over the previous week at 73.1 per cent, with preliminary results showing a clearance rate of 73.2 per cent. Sydney’s auction market has consistently been performing at a level lower than the strengths seen at the start of the year, when, for 22 consecutive weeks, the clearance rate for the city was above the 80 per cent mark. In saying that, the number of auctions held across the city has been trending up, with 1,008 auctions held this week and 1,075 last week. One year ago, Sydney’s auction clearance rate was 78 per cent across 883 auctions. The North Sydney and Hornsby sub-region had the highest volume of auctions this week, with 183 held and a preliminary clearance rate of 76.8 per cent.</span></p>
<p><a href="/images/2015/09/21/20150921-Sydney.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/21/20150921-Sydney.jpg" alt="" width="820" height="554"></p>
<p><span>Across </span><strong>Brisbane</strong><span>, 108 auctions results have been reported this week, with 52.8 per cent successful. This week, 144 auctions were held across the city, compared to 179 last week, when the clearance rate was 50.3 per cent and 154 at the same time last year, when the clearance rate was significantly lower, at 38.9 per cent. 29 </span><strong>Gold</strong><span> </span><strong>Coast</strong><span> auction results have been reported so far this week, with a preliminary clearance rate of 41.4 per cent.</span></p>
<p><a href="/images/2015/09/21/20150921-Brisbane.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/21/20150921-Brisbane.jpg" alt="" width="821" height="551"></span></p>
<p> </p>
<p><strong>Adelaide’s</strong><span> preliminary clearance rate was 71.4 per cent this week, up from 62.4 per cent the previous week and 68.4 per cent last year. The number of auctions held across the city increased on a week-on-week basis, from 89 last week to 99 this week, while Adelaide’s auction market was busier at the same time last year (129).</span></p>
<p><span>Click to enlarge</span></p>
<p><span><img src="/images/2015/09/21/20150921-Adelaide.jpg" alt="" width="800" height="545"></span></p>
<p> </p>
<p>30 <strong>Perth</strong> auctions were held this week with a preliminary clearance rate of 37.5 per cent, compared to 54.2 per cent the previous week and 51.2 per cent one year ago.</p>
<p>There were 116 auctions across <strong>Canberra</strong> this week, compared to 79 last week and 80 one year ago. Preliminary results show that 57.0 per cent of reported results were successful this week, down from 65.2 per cent last week and 58.2 per cent one year ago.</p>
<p>So far this week, 4 of the 5 <strong>Tasmanian</strong> auctions have been reported, with only 1 successful result.</p>
</div>
</div>
</div>
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smiller-vwPjRHTkST

More than 2,000 auctions held across combined capital cities: CoreLogic RP Data's Shana Miller

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<p>Commercial property sales in Chatswood, north of Sydney's CBD, have risen over the past three months with 30 sales recorded for the most recent quarter for a total value of $75.4 million, according to CoreLogic RP Data.</p>
<p>CoreLogic RP Data's latest Cityscope recorded 23 sales to June 2015 for a total value of $39.4 million bringing the 12-month total to $358.3 million, down from the $610.3 million sold over the same time last year.</p>
<p><a href="/images/2015/09/18/Pulse-CHSalesGrid-580x414.gif" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/18/Pulse-CHSalesGrid-580x414.gif" alt=""></p>
<p> </p>
<p><strong>Recent standout sales in Chatswood include:</strong></p>
<ul>
<li>425 Victoria Avenue, Chatswood, a two storey brick commercial building with a net lettable area of 793 sqm was bought at auction for $25 million</li>
<li>407 Pacific Highway, Artarmon, a four storey building and a five storey building with 2 basement levels of car parking, net lettable area is 6,083 sqm was bought for $16.1 million. The sale represented an initial yield of 8.5% on a passing income of $1.36 million (net) including incentives</li>
<li>66-76 Dickson Avenue, Artarmon, a three storey office building with a three-level car parking, building area is 5,025 sqm was bought for $7.65 million.</li>
</ul>
<p><strong>Properties for sale in Chatswood in September 2015 include:</strong></p>
<ul>
<li>Zenith Centre Tower A and Zenith Centre Tower B, at 821 Pacific Highway, Chatswood, a twin A-grade complex with 43,400 sqm of office space and 900 sqm of retail space, it also includes a 250 seat community theatre for sale by international expressions of interest through Savills and CBRE</li>
<li>Lot 4, 7 Railway Street, Chatswood, a 164 sqm commercial suite on level one, lot 5, 7 Railway Street, Chatswood, a 170 sqm commercial suite on level two, lot 16, 7 Railway Street, Chatswood, a 173 sqm commercial suite on level 2 and lot 59, 7 Railway Street, Chatswood, a 13 sqm car space on basement level one in Era Apartment for sale in one line through Colliers International</li>
<li>18-26 Dickson Avenue, Artarmon, a three storey office building with container access and a high-clearance warehouse with building area of 2,362 sqm for sale through CBRE North Sydney.</li>
</ul>
<p><a href="/images/2015/09/18/Pulse-CHSalesChart.gif" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/18/Pulse-CHSalesChart.gif" alt=""></p>
<p><strong>Significant leasing opportunities in Chatswood in September 2015 include:</strong></p>
<ul>
<li>Solitaire at 12 Help Street, Chatswood has office space ranging from 250 sqm to 4,000 sqm for lease through JLL North Sydney and Cadigal Office Leasing North Sydney</li>
<li>475 Victoria Avenue, Chatswood has office space ranging from 400 sqm to 9,000 sqm for lease through Cadigal Office Leasing and Colliers International North Sydney</li>
<li>33 Herbert Street, St Leonards has office space ranging from 300 sqm to 1,999 sqm for lease through Knight Frank North Sydney</li>
<li>7-9 George Place, Artarmon has office/warehouse space of 1,092 sqm for lease through Sutton Anderson.</li>
</ul>
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mick.cee-iDmgDDAmu8

Chatswood commercial sales top $75 million in quarter: CoreLogic RP Data

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<p>For years now I have contemplated how an investment banker would run the Australian economy and now we are about to find out with Malcolm Turnbull taking over the reigns as prime minister.</p>
<p>Straight after the news broke I posted a message on Mr Turnbull’s Facebook page – “Congratulations on becoming Prime Minister of Australia.If I can ask you to do one thing – could you please appoint Kelly O’Dwyer as Housing minister. It’s rather embarrassing that the Australian government does not have a Minister for this important portfolio.”</p>
<p>There are major dark clouds forming and what we might expect is being discussed by a few, and if we are proven correct this will be a major storm that will reverberate across Australia. The problem started back in 2008 when the then prime minister Kevin Rudd and his treasurer Wayne Swan changed the ratio permitting foreign buyers to purchase off the plan in Australia. The ratio was adjusted from 50 per cent to 100 per cent (which is where it currently sits) at that time I wrote that such a move was fraught with danger.</p>
<p>Take Sydney for example, where tens of thousands of new apartments have been sold off – the – plan, there now are grave concerns that the foreign buyers will walk away from the deposits and won’t settle. With interest we should be watching the stock market in China which has lost approximately 40 per cent in the last three months, where when we see stock market corrections money is then diverted into real estate – this time around this may not be the case. Then we see that volatility on the global equity markets in August was the highest since 2011.</p>
<p>The first signs of cracking in the residential market will be, when these new developments are completed, how many apartments that were sold off the plan are immediately placed back on the market. BIS Shrapnel recently reported that NSW is set to become Australia’s top home builder in 2016, having overtaken Victoria which has held this position since early 2000.</p>
<p>Should the foreign buyers spook then the new construction will in all probability come to a grinding halt where history shows prices start falling significantly due to an oversupply on the markets. Thanks to the overseas buyer ratio being doubled this spells double trouble, given what we have seen with the real estate investment markets has been unprecedented. Historically we have absolutely no measures on what may happen aside from expecting the worst.</p>
<p>We also see that APRA’s policy initiatives are now cooling the markets which may need some urgent critiquing given that if the property markets cool too quickly this will spook the foreign buyers in to a frenzy of defaults.</p>
<p>On the flip side we have the Australian government via the Australian Taxation Office (ATO) forensically examining all property transactions for existing homes that may have been illegally acquired – I predict this will be huge. There is approximately another 6 weeks left of the amnesty period before the ATO starts prosecuting.</p>
<p>Thus far this crackdown on illegal purchases has more than doubled to over 500 investigations and that’s before the amnesty period ends – predominately at this stage the ATO is relying on public tip offs. Treasurer Joe Hockey let the cat out of the bag this week when he commented “So we are getting on with the job of enforcing the laws. There has been no enforcement and no successful order for at least the last 20 years. But we have taken this decision to ensure that there is integrity in the foreign investment regime and that those people who unlawfully hold Australian residential real estate are caught.”</p>
<p>Going by that one must be thinking that this investigation is so huge that they are now looking back 20 years – which would lead to an unprecedented number of divestment orders in 2016. Should we see the off – the – plan investors defaulting it would not be smart for the integrity of Australian property prices to also run divestment orders on existing dwellings.</p>
<p>Another point that needs raising is that NSW is doing the major lifting in terms of the Australian economy as this is the hub for economic momentum. The Reserve Bank of Australia, APRA, ATO, lenders and elected politicians need to immediately start consulting property developers and industry specialists and start drawing up a battle plan.</p>
<p>Until a clearer picture is presented foreign ownership rates from 100 per cent need to be cut hard. So that’s why Malcolm Turnbull needs to appoint a Housing minister next Monday as he/she will have plenty of work to do given I see the property markets now on a “High Alert”.</p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 64</p>
<p>• Number of houses on the market last week – 56</p>
<p>• Number of houses on the market this week – 52</p>
<p>• Number of apartments on the market this time last year – 44</p>
<p>• Number of apartments on the market last week – 49</p>
<p>• Number of apartments on the market this week – 51</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year –10</p>
<p>• Number of houses on the market last week – 6</p>
<p>• Number of houses on the market this week – 7</p>
<p>• Number of apartments on the market this time last year – 16</p>
<p>• Number of apartments on the market last week – 20</p>
<p>• Number of apartments on the market this week – 22</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 7</p>
<p>• Number of houses on the market last week – 2</p>
<p>•Number of houses on the market this week – 3</p>
<p>• Number of apartments on the market this time last year– 33</p>
<p>• Number of apartments on the market last week – 37</p>
<p>• Number of apartments on the market this week – 29</p>
<p> </p>
<p><em><span>ROBERT SIMEON</span> is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000. </em></p>
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jchancellor-FAypfDUnLy

Are foreign buyers about to ‘short’ our residential markets? Robert Simeon

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<div>A stunning research note from Cameron Kusher of <em>CoreLogic-RP Data</em> which revealed that while median vacant land prices continued to rise very strongly in Australian capital cities over the past year, regional land prices fell by -3.4% to $156,500.</div>
<div> </div>
<div>In particular land values in Sydney (+16.6%) and Melbourne (+14.5%) have exploded over the past year.<br><br>
</div>
<div>And while demand for housing is presently low in Western Australia, median land prices in Perth continued to escalate very significantly (+10.3%), which in turn will force up the cost of new housing. Today, Sydney and Perth have the most expensive land prices in Australia. </div>
<div> </div>
<div>Unlike in the capital cities regional lot sizes have actually expanded by +8.3% over the past year according to Kusher, making the decline in median land prices all the more notable.</div>
<div> </div>
<div>Driven by rapid expansion in household debt regional property prices had a relatively strong run in the lead up to the financial crisis, but this trend has evidently now slowed.<br><br>While a 750sqm lot in a capital city 25 years ago would have cost you $50,000 according to Kusher, today it would set you back $417,800...and rising.</div>
<div>
<br>Regional land values are therefore reportedly some 39% cheaper than in the capital cities, the largest such differential in since 1990.</div>
<div> </div>
<div>Interestingly over the long haul land prices have appreciated at a very similar percentage annual rate between capital cities and the regions.</div>
<div> </div>
<div>This implies in turn that the best performing property types have been those with a high percentage land value.</div>
<div> </div>
<div>More remote properties - where the land component comprises only a small part of the asset value - remain cheap precisely because the value is all in the <em>building, </em>and not the land.</div>
<div> </div>
<div>"Location, location, location" as the old mantra goes.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Why is this happening?</span></strong></div>
<div> </div>
<div>Why are regional prices not keeping pace? And particularly why has this become the case now?</div>
<div> </div>
<div>This is a complex question, but a major reason for the strength in capital city land values is likely to be the restricted supply of new land made available for development in the congested capital cities where population growth and therefore underlying demand is strong.</div>
<div> </div>
<div>Regional population growth has been considerably weaker ex-Queensland, and there is generally speaking more land available for development.</div>
<div> </div>
<div>Since the financial crisis there has been another key driver for the larger capitals: jobs growth. </div>
<div> </div>
<div>The ABS released its Detailed Labour Force figures for August 2015 today which underscored some important trends.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Cities creating jobs</span></strong></div>
<div> </div>
<div>While regional employment in the two most populous states was growing reasonably robustly until the financial crisis, regional employment growth has now slowed, with the mining capex cliff now adding to the drag in some regions.</div>
<div> </div>
<div><a href="/images/2015/09/18/LF3.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/09/18/LF3.jpg" alt=""></div>
<div> </div>
<div>
<div>Looking below at cumulative employment growth since Febuary 2007, we can see why both Sydney and Melbourne have been labelled by the Reserve Bank as "self-sustaining job magnets", creating +350,000 new jobs apiece.</div>
<div> </div>
<div>The combined cities and towns of regional New South Wales has created a fair level of new employment (+100,000), particularly in the Hunter, Newcastle and the Illawarra. </div>
<div> </div>
<div>However, over the same time period regional Victoria has by comparison created almost no additional employment (+10,000) on a net basis.</div>
<div> </div>
<div><a href="/images/2015/09/18/LF2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/09/18/LF2.jpg" alt=""></div>
<div> </div>
<div>
<div class="separator">An unfortunate corrollary of this is while there was always a level of frictional unemployment in the lead up to 2007, there had at times been a job for almost everyone who wanted one.</div>
<div class="separator"> </div>
<div class="separator">Sadly this is no longer the case, and regional unemployment in particular has been pulsing higher. </div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2015/09/18/LF8.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><img src="/images/2015/09/18/LF8.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator">
<div class="separator"><strong><span style="text-decoration: underline;">Employment growth</span></strong></div>
<div class="separator"> </div>
<div class="separator">Not dissimilarly while Greater Brisbane has now added +23,000 jobs over the year to August 2015, regional Queensland employment has declined by -27,000, though there may be some debate over the "quality" of new jobs created. </div>
<div class="separator"> </div>
<div class="separator">While some revisions have been made to population assumptions relating to Western Australia, total employment in Perth has continued to rise modestly.</div>
<div class="separator"> </div>
<div class="separator">Unfortunately total employment in Adelaide has declined over the past <strong><span style="text-decoration: underline;">five</span></strong> years (-2,700), with more challenges in the pipeline in the manufacturing space and rising unemployment.</div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2015/09/18/LF4.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><img src="/images/2015/09/18/LF4.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator">
<strong><span style="text-decoration: underline;">Unemployment rates</span></strong><br><br><div>Smoothing the volatile monthly unemployment readings below on a rolling annual basis we can see that Greater Sydney remains the best placed economy, the unusual labour market of Darwin aside.</div>
<div> </div>
<div>New South Wales also has the lowest level of mortgage delinquency rates according the latest figures from Moody's.</div>
<div> </div>
<div>Furthermore, unemployment rates are now trending down in Greater Brisbane, Melbourne and Hobart.</div>
<br><span>On the other hand, unemployment is clearly rising in Perth and Adelaide.</span>
</div>
<div class="separator"><span> </span></div>
<div class="separator"><a href="/images/2015/09/18/LF5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div class="separator"><span> </span></div>
<div class="separator"><span><img src="/images/2015/09/18/LF5.jpg" alt=""></span></div>
<div class="separator"> </div>
<div class="separator"> </div>
<div class="separator"><span>Adelaide is now recording an unemployment rate reading of 7.9 per cent which is dragging up the 12 month moving average.</span></div>
<div class="separator"><span> </span></div>
<div class="separator"><a href="/images/2015/09/18/LF7.jpg" target="_blank"><span>Click to enlarge</span></a></div>
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<div class="separator"><span><img src="/images/2015/09/18/LF7.jpg" alt=""></span></div>
<div class="separator"> </div>
<div class="separator"> </div>
<div class="separator">
<div>On the other hand Greater Brisbane has now recorded two surprisingly low readings of just 5.2 per cent over the last three months.</div>
<div> </div>
<div>Realistically the true unemployment rate in Greater Brisbane is higher than that, but nevertheless this is heartening to see for the Queensland capital. </div>
<div> </div>
<div><a href="/images/2015/09/18/LF6.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/09/18/LF6.jpg" alt=""></div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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pwargent-M4siyDbqQY

Regional land prices are falling: Pete Wargent

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<p><span style="line-height: 1.3em;">You’ve found what you think is a brilliant development site.  Now it’s time to jump on that roller coaster and start the ride of your life as you commence the analysis process.  Will the project be feasible?  What is feasible anyway?  </span></p>
<p>Feasible is really another word for “is it going to be financially worth it for you to spend your time, energy, money, blood, sweat and tears developing this site?”</p>
<p>Some advice I can give you about property investing and anyone in property will also tell you, to stay emotionally unattached to the property, as this is where bad decisions can be made. I have seen it many times and this is where it can all come undone.</p>
<p>Firstly, it’s important to determine your development strategy and your investing criteria prior to looking for a development site.  Your strategy may include:</p>
<ul>
<li>Land Subdivision</li>
<li>Renovate an existing dwelling</li>
<li>Dual occupancy or low density development</li>
<li>Renovate an existing dwelling and build new villas/units also on the land</li>
<li>Medium density development</li>
<li>All of the above</li>
</ul>
<p>Your budget will help to determine your development strategy. A simple land subdivision will be less costly (but not necessarily quicker) than a larger villa/unit development for instance. </p>
<p>As part of your strategy, you will need to think about what profit margin you would feel comfortable making from a development.   You may have heard about the ‘20% profit margin’ rule for developers?   Once all development costs are taken from the potential sale result of the properties, (when selling the properties) there will be a 20% profit margin.  Personally, I don’t always work back from a certain profit margin as I find this restrictive.  </p>
<p>Most Property Bloom clients are looking to boost their portfolios, create some equity and hold the new properties long term, so we also need to meet other criteria such as rental returns and depreciation benefits on completion.  </p>
<p>To determine the feasibility of a site, you will need to:</p>
<ul>
<li>Talk to an accountant who specialises in property and one who preferably develops property themselves as they can advise you on the best structure or entity to purchase under and explain the tax implications when developing such as GST and CGT.  </li>
<li>Meet with a finance broker or a bank to determine your budget and the best loan structure for your development.  It’s important to choose a lender that offers construction loans for more than one dwelling and find out what their lending criteria is around this i.e. not all residential lenders will lend to you for a four unit site for instance.  Check interest rates on these loans.</li>
<li>Meet with solicitor to determine their costs. They will check for restrictive covenants or easements that may affect the land. They will also make sure services are available and connected especially if you are developing in a new area as well as finalising the deal for you.</li>
<li>Read the local Development Control Plan (DCP) and Local Environment Plan (LEP) and speak with your council’s town planner to find out DA and CC (Construction Certificate) fees and charges. </li>
<li>Meet with an architect and builder to determine what you can build on the site and estimated construction costs.  Some builders offer standard designs which will save you design fees.  If they do this, then they will be familiar with the local planning requirements.  If you are not happy with a standard design, engage a local architect to design specifically for the site. Get a quote.</li>
<li>A surveyor will give you advice on the subdivision process and estimate costs relating to the subdivision including sewer extension and service connection costs.  </li>
<li>If you are time poor and/or inexperienced, then factor in a cost to use a project manager. The cost can be taken up in the depreciation schedule and you will save a lot of time.</li>
<li>Talk to real estate agents to determine the value of your development and rental returns on completion and their management costs if you are holding as this will have huge impact on the success of the feasibility.  It's important to take current market conditions into account.</li>
<li>Research other costs such as Stamp Duty and if there are any government grants applicable that  may offset some of the stamp duty, insurance costs and interest/holding costs.</li>
</ul>
<p>The aim is to keep the above costs to a minimum so you will receive a higher profit margin. At Property Bloom we have negotiated discounts with all our suppliers, builders and consultants. Even our preferred property managers give our clients a discounted management fee, so if you can do the same, you'll make a good saving.  </p>
<p>Compile a spread sheet for the costs or there are software programs available to help you with this process.</p>
<p>The more development sites you assess, the quicker you'll understand which ones are feasible and which ones just don't stack up. Have fun and enjoy the ride!</p>
<p><span style="line-height: 1.3em;"><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em> </span></p>
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jochivers-wq5Bp59R5a

Is that development project feasible? Jo Chivers

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<p><span>Yuhu Group Australia has announced its settlement on a commercial property in North Sydney for $59 million.</span></p>
<p>The 15-storey block at <a href="https://www.realcommercial.com.au/property-offices-nsw-north+sydney-500854103" target="_blank">20 Berry Street</a>, close to the Greenwood Plaza Shopping Centre and the North Sydney train station, occupies three prominent street frontages.</p>
<p><span>The freehold building of 9723.3 sqm sits on 1391 sqm of land, and with several recent upgrades, boasts an impressive foyer with a newly refurbished café/restaurant, excellent natural light, expansive harbour and district views from the upper levels, and has parking for 110 vehicles.</span></p>
<p><span>The complex is currently 100% leased with major global infrastructure consultants SMEC occupying 49% of net lettable area (NLA) until 2023.</span></p>
<p><span>Other tenants include financial, IT and childcare services.</span></p>
<p><span>Knight Frank noted the leased net income is $4.4 million per annum with an estimated weighted average lease expiry (WALE) by income of 5.42 years.</span></p>
<p><span>“Because of its highly convenient and desirable location, ready access to outstanding transport, recreational and education facilities as well as it vibrant commercial and residential sectors, we see this North Sydney purchase as a sound investment in securing long-term growth,” said Yuhu Group founder and chairman Xiangmo Huang.</span></p>
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Yuhu Group confirms settlement of $59m building in North Sydney‏

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<p>SPONSORED POST</p>
<p>Following continuing pressure by APRA on the major banks to ensure that they comply with their obligations under the Basil III accord, the banks recently reacted by reducing their appetite for construction lending, dramatically reigning in their marketing to developers and in some instances actually reducing the level of staff in their relationship management teams. </p>
<p>This conflict between their requirements to satisfy capital adequacy levels under the accord coupled with their need to improve their return on shareholding to remain competitive with their peers has created a significant problem for many of their developer clientele. </p>
<p>To achieve their objectives, the banks have raised the bar for developers in terms of their condition precedent requirements, reduced gearing levels and increased their pricing on debt, effectively implementing a flight to quality and leaving many of the their traditional but more marginal clients in terms of credit strength, looking for alternative funding sources.</p>
<p>This has resulted in a significant shift in the construction lending landscape with some developers quickly adjusting to the need to re-focus their attention on where they source their debt and its not just the smaller more marginalised developers who are making changes. <span style="line-height: 1.3em;"> </span></p>
<p>HoldenCAPITAL is currently settling an average of more than 1 transaction per week but recently there has been a noticeable change in the ratio between the traditional bank sourced debt and those alternative funding options now being opted for by developers who don’t want to miss a market opportunity just because their banks have their own problems. </p>
<p>In FY15 we settled 64% of our deals with the major banks but this has quickly changed with 62% of the $300mil of project debt settling between now and Christmas likely to be set with alternative funding sources.</p>
<p>Through managing the tender process on behalf of its clients, HoldenCAPITAL has been at the forefront of both the bank and non-bank markets and can quickly identify where a client can secure the best outcome for their project needs.  He says that the majors are still a strong force in the sector but there are very real alternatives emerging as strong contenders for new projects. </p>
<p>While there are additional costs associated with these alternative funding sources rising up to the meet the market demand, these alternatives do offer their own distinctly different benefits to developers who do not want to be restricted in their ability to meet identified market opportunities due to the constraints placed on their traditional bank which have no direct relevance to their market sector. </p>
<p>By way of example, non-bank money can cost as low as 9-10% per annum, which, which when compared to the traditional bank cost (if it was available) on a medium sized projects of say 30 product, would add as little as ~$170,000 or 10% variance on normal finance costs to a project with a total cost of $6M. </p>
<p>What this alternative product does offer the developer is the potential for significant savings in other areas such as the opportunity to commence the project without the need for pre-sales. It also allows the developer to lock in a construction price and minimise escalation risk as well as the benefit of selling product which has a more certain delivery date, rather than the more speculative "off the plan" route required to satisfy the banks pre-sale requirements. This in turn gives the developer the edge when selling any completed residual stock, which will be competing with stock still under construction by those competitors who chose the pre-sale option.</p>
<p>The changing landscape in the construction finance arena has also given rise to an increase in private investors looking to invest in development opportunities. With the uncertainties surrounding the investments in shares, reduced superfund returns and tightening investment yield in investment property, investment in well structured and risk mitigated developments was providing investors with a very attractive alternative. We currently manage over $70mil of private investor funds and the enquiry from new investors is getting more frequent. </p>
<p>So what is the future for construction lending? There is no doubt that many of these changes have been seen before but the reality facing the banks is that many of the revisions driving how they participate in the construction market are permanent rather than the cyclical as in the past and as such, it would appear that the rise of the alternative lenders is more than a passing fad and could represent a real paradigm shift in this sector.</p>
<p><em>This article was written by Dan Holden of <em>bespoke construction finance firm </em>HoldenCAPITAL. To discuss your project finance requirement please call (07) 3171 4200 or <a href="https://www.holdencapital.com.au" target="_blank">click here</a>.</em></p>
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Banks tightening developer credit heralds rise of alternate funding options: HoldenCAPITAL

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<p>Shopping centre managers now have a less positive on future trading prospects than six months ago according to the JLL Retail Survey.</p>
<p>In February, 63% of respondents to JLL's Retail Survey said they expected some turnover growth in the year ahead, however in August this had dropped to 51%.</p>
<p><span style="line-height: 1.3em;">JLL’s head of property and Asset management Australia, Richard Fennell, said one of the concerns being highlighted by centre managers as impacting their turnover performance going forward related to competition from new or upgraded centres.</span></p>
<p>“On the positive side, the potential impact of online retailing has consistently reduced as a factor in future trading prospects," he said.</p>
<p>"While there is some pressure on sectors of the market from overseas online retailers, it is not seen as a major concern for smaller convenience based centres.</p>
<p>“The main sources of online sales in the grocery sector are the bricks and mortar supermarkets, with sales still reflected through their bricks and mortar stores."</p>
<p><a href="/images/2015/09/17/Screen%20Shot%202015-09-17%20at%203.21.10%20PM.png" target="_blank">Click to enlarge</a></p>
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<p><span>Completions by Centre Type, 2011-17 </span></p>
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<p>JLL strategic consulting director David Snoswell said t<span style="line-height: 1.3em;">he vacancy rate for sub-regionals declined from 2.8% in December 2014 to 2.2% in June 2015 – the lowest reading since September 2013. </span></p>
<p><span style="line-height: 1.3em;">"The average vacancy rate across neighbourhood centres was 3.9% - the first time the reading has dipped below 4%,” he said.</span></p>
<p> <span style="line-height: 1.3em;">“While tenant enquiry levels were weaker in the latest survey compared to the February result, the actual result is only the fourth positive reading from the 13 surveys that have been conducted since 2011 and is a marked improvement compared to the negative sentiment throughout 2013. </span></p>
<p><span style="line-height: 1.3em;">"Tenant enquiry remained positive for the third survey in a row with a net balance of 5%; a relatively good result given that eight of the first nine surveys had negative readings.”</span></p>
<p><a href="/images/2015/09/17/Screen%20Shot%202015-09-17%20at%203.22.55%20PM.png" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></p>
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<p><span>Turnover Outlook </span><span>– </span><span>Next 12 Months </span></p>
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<p><span style="line-height: 1.3em;"><img src="/images/2015/09/17/Screen%20Shot%202015-09-17%20at%203.22.55%20PM.png" alt=""></span></p>
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Retail turnover growth drops in August: Jones Lang LaSalle

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<p><span>Last week, the auction clearance rate across the combined capital cities was 71.2%, the lowest weekly clearance rate since February this year, however it was the fifth busiest week for auctions so far this year (2,654). </span></p>
<p><span>To put this into perspective based on reported results, last week an estimated 1,890 homes were sold as a result of an auction campaign across the nation’s capital cities. This week, CoreLogic RP Data is tracking just shy of 2,600 auctions, showing the number of homes being taken to auction remains relatively steady.</span></p>
<p><span>This week, Melbourne is expected to host 1,120 auctions, followed closely by Sydney with 1,068. Last week, across both cities the clearance rates fell on a week-on-week basis, down to 74.3% for Melbourne and 73.1% for Sydney. This result for Sydney was the lowest recorded so far this year; however, it still represented the second strongest result across any other capital city market.</span></p>
<p><span>Across Adelaide, auction volumes will rise this week, up from 89 last week to 101 this week. In Canberra, 124 auctions are scheduled this week, compared to a lower 79 last week. Meanwhile, auction volumes remain relatively steady in Perth, down slightly from 35 last week to 32 over<br> the current week.</span></p>
<p><span>Brisbane is expecting 149 auctions this week, compared to 179 last week and 154 at the same time last year.</span></p>
<p><span>The busiest suburb for auctions across Australia this week is located in Sydney, with 19 Mosman auctions to be held. Mount Waverley (Vic) and Reservoir (Vic) both have 18 residential auctions this week. </span></p>
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Combined capital cities record lowest clearance rate since February: CoreLogic RP Data's Shana Miller

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<p><span>Australian Catholic University has purchased a 13-storey office tower at 33 Berry Street North Sydney for an undisclosed sum through an off market expressions of interest campaign.</span></p>
<p><span>Located on the corner of Pacific Highway and Berry Street, the office was purchased to meet increasing numbers of students and teachers.</span></p>
<p><span>Colliers International’s Henry Burke said the property is fully leased and has a mixed use zoning.</span></p>
<p><span>“After owning the property for more than 20 years, the vendor is sad to see it sold but knew that the timing was right to move on, particularly given the strong lease profile and flexible zoning on offer to purchasers” he said.</span></p>
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