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>.

The prototype launch coincides with buyer demand for larger apartment living continuing across Sydney’s Hills District.

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.

“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.

"The prototype apartment provides greater clarity and buyer confidence. We expect this will increase sales momentum for Zeste and the Sky Homes in particular.”

[smartcode_project:default project_id=150510 project_image_fid=351878]

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.

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.

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.

“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.”

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.

"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.”

[smartcode_project:default project_id=150510 project_image_fid=351874]

In addition to the two residential buildings, Zeste comprises a single-story community amenity pavilion nestled in the landscape between Essence and Eden.

“The communal pavilion is a distinctive feature designed to foster a deep sense of community, with nature at its heart," Pomroy added.

"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.

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.

“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.

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.

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.

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.

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.

Sekisui recently commenced its pre-construction phase. They are expecting an early 2028 completion of Zeste.

[smartcode_project_cta:default project_id=150510]

Joel Robinson

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

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.

Martello™ says the incentive creates a more accessible entry into premium apartment living.

"While incentives in property are nothing new, today’s stamp duty contributions arrive at a particularly important moment," the developer says.

"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."

[smartcode_project:default project_id=143932 project_image_fid=367517]

Aere is one of the more boutique new developments on Chevron Island, with just 33 apartments across 18 storeys on Mawarra Street

The developer has placed a strong emphasis on wellness, briefing architecture firm Raunik Design to embed this philosophy into the project.

<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.

[smartcode_project:default project_id=143932 project_image_fid=368446]

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.

Martello™ says that in any market cycle, confidence matters.

"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."

&nbsp;

[smartcode_project:default project_id=143932 project_image_fid=367507]

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.

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.

[smartcode_project:default project_id=143932 project_image_fid=367515]

&nbsp;

"What we are seeing now is a market that rewards readiness," Martello added.

"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.

&nbsp;

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.

[smartcode_project_cta:default project_id=143932]

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

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.

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.

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.

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.

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.

DAH Architecture has led the design of Marrone, which will include more than 330 sqm of communal open space and rooftop recreation areas.

<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." />

Cottee told Apartments.com.au the project reflects a gap in Brisbane’s apartment market.

"It is an area we know well with Atelier, another development which focuses on large apartments, less than 300 metres away," Cottee says.

"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.

"Marrone will offer the same size and scale, but with greater amenity and at a much more realistic price point for the market."

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.

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.

“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.

“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.”

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.

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.

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.

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.

Cottee is expecting Marrone to launch around August with Realm Projects.

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

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<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.

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.

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.
</section>

<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" />

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.

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.

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.

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.

DOMA Group Managing Director Jure Domazet said the aim was to create a precinct that becomes synonymous with Newcastle itself.

“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.

DOMA’s Chris Farrington said the project would fundamentally change how Newcastle is perceived nationally.

“Newcastle Quay is more than a waterfront precinct, it is a national announcement for this city,” Farrington said.

“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.”

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.

&nbsp;

&nbsp;

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."

DOMA Group unveils 1,000-apartment Newcastle Quay precinct

ASX-listed developer Stockland is continuing to ramp up its return to the apartment market.

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.

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>.

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.

<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" />

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.

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.

The development is being pursued under the Housing Delivery Authority pathway after Stockland’s proposal was declared State Significant Development earlier this year.

<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" />

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.

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.

“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.

“We propose breaking the tower form into two defined volumes rather than a singular form.”

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.

<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" />

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.

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.

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.

<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" />

Bates Smart’s report describes St Leonards as transitioning away from its historical commercial identity toward a more mixed-use urban environment.

“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.

“These projects have increasingly focused on residential accommodation, marking a shift from its purely commercial roots.”

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.

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

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.

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;

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.

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.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<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" />

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

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.

<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" />

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.<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" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

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;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

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

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A development application has been made for Melville's Garden City Shopping Centre to increase the retail outlet from 72,000 square metres to approximately 120,000 square metres.
The expansion and redevelopment of the Perth shopping centre by AMP Capital is worth $750 million and would be completed 2019, subject to approval.
The development application is at City of Melville Council and Garden City until September 2015.
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jonathanchancellor-7SQnKwU6yx

$750m redevelopment proposal for Perth's Garden City

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Potential investors around Adelaide are warned not to look for short term capital gain and instead concentrate on paying the right price in the right area.
The Herron Todd White July 2015 Month in Review said those looking to buy in the $500,000 price range should concentrate on inner suburban areas close to amenities above anything else.
A townhouse, cottage or unit worth $500,000 within the eastern and southern suburbs would be a more desirable location, the report noted.
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mick.cee-iDmgDDAmu8

Adelaide investors should look past the short term: HTW

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This week I had the opportunity to run the numbers on an eleven unit development project. 
Normally, Property Bloom clients ask us to source lower density developments such as dual occupancies or three to four unit developments.  Whilst crunching the numbers on this big boy, I started to wonder how many smaller projects we'd need to complete to achieve a similar financial outcome. The answer surprised me. 
What do you need to consider when looking at a medium density development project?  
By the way, density is a measurement used to work out how many dwelling can be built within a particular zoning. In NSW, a medium density zone is defined as 20-40 dwellings per hectare.
1. Finance. Investors can be afraid of jumping from a residential loan to a commercial/development funding and believe that banks will generally lend on three-four unit projects under residential lending. There are a few myths around this. If you have a good relationship manager at your bank, your finances are in good order and you present a larger project to them in a professional way, they will consider it. Also, people assume the commercial funding is going to be more expensive and it can be, but there are lenders out there with very competitive rates. It's imperative to use an experience commercial financier when seeking these loans.  
2. Risk. Generally larger development projects are assumed to carry more risk. Assessment of risk is different for everyone but it really comes down to the bottom line. How much profit is there in the project and is it sufficient to take on the risk? How accurate is the research and cost estimates being used?  What are the current market conditions and are they likely to change anytime soon? This will determine exactly how risky it may be or may not be. 
3. People. A good team is imperative. Because if you don't have a trusted team, you'll be testing the experience and efficiency of these people on a larger scale. If they let you down, you will feel it!  Having a proven track record with your team, particularly your builder when embarking on a large scale development, is critical. 
So just how did we find this development site? One of our clever project managers has a great skill. She communicates extremely well and is a very nice person. She was chatting to one of the property owners in this street and ended up negotiating with this man and his neighbour who both owned large lots in this suburb of Newcastle. It wasn't long before she'd secured their adjoining properties under an Option Agreement.  
One of the main benefits of this agreement is that  there are no holding costs until we are ready to build next year. During this period we manage the design and planning process of the project, so construction can commence upon settlement of the land.
The site is located six minutes drive from the main hospital, twenty minutes from the CBD and ten minutes from the university. There are local shops with a nice cafe, three schools in walking distance, an aquatic centre, gym and a number of parks and sporting fields, making it a very popular with the locals.
Our research tells us that there is strong rental and resale demand. 
I thought I'd share with you the numbers on this medium density, eleven unit project as they are looking quite good: 
Land cost:  $1,040,000 
Stamp Duty and acquisition costs: $45,000
Estimated consultant and council fees and charges:  $86,000
Estimated build costs including contingency: $2,640,000
Option fee:  $120,000
Miscellaneous/other costs:  $30,000
Estimated total costs:  $3,961,000
Estimated end values 11 x 3 bedroom townhouses:  $4,840,000
Estimated weekly rental per townhouse $450 per week
Looking at the numbers, there is opportunity to create equity of $879,000. This is before we apply a project management fee which we will discuss with the purchaser. So the developer's margin at this stage is 22%. The purchaser also needs to include holding costs during the six month construction period. There is scope to increase the equity with playing with the design and looking at other configurations such as including a four bedroom home. We've purposely kept our estimated end value conservative. 
In comparison, a typical dual occupancy project will create around $130,000 in equity at a total cost of $740,000. That's a 17.6% margin. That's not too bad and many of our clients come back to do another one. But you'd need to complete about seven dual occs to achieve a similar equity position as the eleven unit project.
It's interesting to compare the numbers and whilst a larger development is not for everyone, we are excited to be able to offer something different. So, if you are ready to sink your teeth into a large project and have sought professional financial advice, then we've done a lot of the hard work for you. 
Jo Chivers is Chief Executive Officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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Medium density development numbers add up: Jo Chivers

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A median price is a commonly used measure of pricing in the housing market. It represents the ‘middle’ sale price in a list of transactions arranged in ascending (or descending) order. 
For example, if there were eleven house sales across a suburb, the median would be the sixth most expensive sale which means that there would be an equal number of more expensive and more affordable properties. 
It is valuable to look at other measures such as quartiles from time-to-time as this methodology provides a reflection of the more affordable and more expensive segments of the housing market in a region. If a region had 21 sales over a period the lower quartile would be the 6th cheapest sale and the upper quartile would be the 6th most expensive sale. 
The difference across the lower and upper quartiles provides us with more than just a view of range in prices; quartile measures also provide an indication of the diversity of housing stock in a region. A good example of this is the high profile suburb of Point Piper in Sydney which has significantly diverse housing stock due to its harbourside location. The lower quartile price is still hefty at $4,720,000 however, the upper quartile comes in at $30,000,000; more than six times the lower quartile price. 
For this analysis we are highlighting the capital city suburbs with the least difference between the bottom and top quartile; or the least amount of diversity in housing stock.
For houses, Strathmore Heights in Melbourne has shown the smallest difference at just 5.6% based on sales over the past year. Across the unit market the suburb with the smallest differential between the lower and upper quartile was Albany Creek in Brisbane at just 1.3%. 
Of surprise is the fact that very few of the suburbs listed for either houses or units are relatively new development areas. In fact across both product types the areas can generally be classified as established suburbs with relatively few new homes over recent years. This would tend to indicate that at the time of development many of the homes built were fairly similar and since that time relatively little in the way of renovation may have taken place. 
The results suggest that these suburbs have very little difference between precincts within the suburb. What this means is there are no areas particularly more or less desirable within these suburbs and this is reflected by the fact there is relatively little price variation throughout the suburb. 
While using a median price as a measure is common across the property industry, by looking at quartiles it enables us to provide greater insights into the dynamics of a particular market. These insights simply aren’t available when medians are the focus. 
The results also reiterate that the median represents the typical housing cost but above and below that figure there can be significant variation in quality and cost or there can be very little difference. 
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Tim Lawless is head of the CoreLogic RP Data research and analytics team and can be contacted <a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank">here</a>.
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Suburbs with the least diversity in housing stock: CoreLogic RP Data's Tim Lawless

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I fear for investors enticed into buying generic off-the-plan apartments at over-the-top prices.
It’s happening in and around the CBDs of all our biggest cities but, increasingly, it’s also happening out in the suburbs. It’s not going to end well for many buyers.
Reports suggest people were clamouring at the weekend to buy units in a proposed development in central Blacktown, paying up to $775,000. 
Nothing wrong with the location – I’ve been advocating the Blacktown area for a long time and it’s delivered handsomely with price growth averaging 13% per year over the past three years.
Blacktown is consistently the most popular suburb in Sydney in terms of sales numbers and the Blacktown City LGA is the leading municipality in NSW for population growth. 
There were 940 homes sold in the suburb of Blacktown in the 12 months to May, according to Australian Property Monitors, with the median house price rising 19% and the unit median up 13%.
But paying the prices reportedly achieved in the Blacktown unit project is beyond reckless. 
The median price for a Blacktown house on land is $545,000 and the mid-range unit fetches $385,000. To pay double the suburb’s median price for an off-the-plan unit flouts basic investment rules and defies common sense.
A couple of years from now, after all the heat and hysteria has evaporated from Sydney markets, I would hate to be the vendor trying to find a buyer for a Blacktown at $800,000-plus, assuming they’re hoping for some capital gain.
Apparently buyers queued up to “snap up” 106 units in Altitude Tower, a planned 24-storey building on the edge of Blacktown’s CBD. Most of them sold at the weekend, reportedly, to a mix of first-time buyers, next-time buyers and investors.
Prices ranged from $395,000 for a one-bedroom unit to $775,000 for a three-bedder on one of the upper levels.
One newspaper report featured a first-home buyer who paid $425,000 for a one-bedroom unit. The median price for all units sold in Blacktown in the past 12 months is $385,000, so where is the value in a one-bedroom unit at $425,000? 
A couple of weeks ago I received an email from a consumer who was thinking of buying in the project. She was considering a two-bedder for around $600,000. I suggested it made no sense to buy a small unit at a price well above the suburb median for a three-bedroom house on land. A view over Blacktown does not justify the price distortion. 
It’s a common phenomenon – new developer product marketed off-the-plan at prices that bear no relationship to established pricing levels in the location. It’s simply bad investing.
I was presented with a Melbourne example recently: a townhouse project in South Morang with two-bedroom townhouses for $443,000, when you could buy the typical house on land for less than that. When the suburb’s unit median price is $310,000, a small townhouse for $443,000 is over the top. 
I urge all investors considering purchases like this to ask themselves this question: is this the best buy I can find in Australia at this moment? 
When buyers are considering off-the-plan developer product at inflated prices, the answer almost certainly is NO. 
TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a> 
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Paying some top off the plan prices is just reckless: Terry Ryder

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Prior to this week, the year to date clearance rate across the combined capital cities was 76.9%, indicating that this week’s preliminary clearance rate of 77.7% is performing above this level. 
This week, there were 1,998 auctions held across Australia’s capital cities, with 1,307 results reported so far. Over the previous week, 1,827 residential auctions were held with a clearance rate of 75.4%. In comparison, at the same time last year 67.9% of the 1,705 auctions were sold, indicating the current auction conditions remain stronger than they were one year ago.
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The preliminary clearance rate across Melbourne was recorded at 76.5% this week across 638 auction results. There were 845 auctions held across the city this week, up from 759 last week when the final auction clearance rate was recorded at 76.0% and similarly, higher than at the same time last year when there were 736 Melbourne auctions with 68.5% of homes selling. This week, there were 3 sub regions which recorded a clearance rate above 80%; Outer East at 89.0%, North West at 82.5% and North East at 82.2%. The region with the highest volume of auctions this week was the Inner region (141).
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For Sydney, the clearance rate across the city this week increased, up to 82.7% from 79.7% last week and 75.4% at the same time last year. Across the city, 841 homes were taken to auction this week, more than last week (794) and significantly higher than one year ago, when 660 Sydney auctions were held. Since mid-August, Sydney’s auction clearance rate has been trending downwards, after the city has seen a record strong performance over the first six months of the year. Despite this, the clearance rate still remains stronger than any other capital city and there are still sub-regions across the city where the clearance rate remains above the 90 per cent mark including Ryde, Eastern Suburbs, Inner West and City and Inner South.
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This week, Brisbane’s preliminary auction clearance rate was 66.0%, compared to 60.2% the previous week and just 44.7% last year. So far, 17 Gold Coast auction results have been reported and the clearance rate for the region is 64.7%.
 
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There were 80 Adelaide auctions this week, with a clearance rate of 60.6% across the 33 results reported so far. Last week, Adelaide’s final auction clearance rate was 64.3%, while one year ago the city saw 60.3% of homes taken to auction sell.
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Across Perth, 10 auctions have been reported so far with a clearance rate of 80.0%, compared to just 18.8% last week and 50.0% at the same time last year. Perth’s clearance rate is often subjected to highs and lows given the low volume of auctions across the city.
Canberra’s preliminary clearance rate was 80.0% this week across 25 results. Last week, 82.1% of Canberra auctions were successful, the second strongest result for the city so far this year.
So far this week, 4 Tasmanian auctions have been reported and of these reported results there has been 1 sale.
 
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Brisbane auctions highest preliminary clearance since 2009: CoreLogic RP Data's Shana Miller

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The Broadway Shopping Centre in Sydney is set for a $55 million redevelopment.
The redevelopment includes a 3400 square metre-expansion of Level 2 that will add about 31 new stores.
The redevelopment will also increase the centre's food and fashion retail offer, following the introduction of Apple Store in mid-2012 and ALDI last year.
Business as usual will continue throughout the redevelopment period.
The Mirvac and Perron Investments-owned Broadway Shopping Centre ranked first for turnover per square metre according to the 2015 Shopping Centre News Big Guns report, up 6.4 per cent from last year at $12,248 per square metre.
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Broadway Shopping Centre set for $55 million upgrade

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Two adjoining terrace houses and a warehouse in Balmain are being jointly auction as a vacant possession, with the four separate titles, approximately 560 sqm, to be sold in one line or two and two.
The property on 77-79 Beattie Street, Balmain, comes with commercial usage rights and development potential.
Ray White Commercial Inner West principal Tim Morrison said the property with easy access to the Balmain Peninsula as well as the northern, southern and western suburbs of Sydney.
“The terraces include kitchen and amenities while the warehouse is generously sized with a mezzanine level," Mr Morrison said.
“Balmain is a hot spot for savvy investors looking for development opportunities as it is only approximately 6km to the Sydney CBD." 
The auctioned is being held 10:30am on Thursday, August 13, 2015, at 50 Margaret Street, Sydney.
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 Balmain vacant possession ripe for development

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An associate of mine recently suggested that I listen to a podcast from the USA that talked about the role of the arts in helping to both revitalise existing neighbourhoods and also helping to create and energise new ones.
At the same time the topic also explored some related issues like housing affordability and ageing in place.
All of which are common themes here and I think have particular significance to many aspects of marketing new projects and how place in-turn influences values.
While some of the material in the podcast was largely focussed on the regenerating neglected urban areas the central theme of ‘creative space making’ had lots of material that I think can be applied here. Many parts of Sydney are being developed with new apartment and mixed-use projects and among buyers there is a definite desire to live in places that have a feeling of community, a richness of local colour and activity.
LOVE OF PLACE
There’s no doubt that developers take the lead when investing into new areas, having usually worked with local councils and existing residents. Sometimes this process results in the creation of totally new neighbourhoods and new communities but often there’s an existing footprint of local character that extends well beyond just local services.
When we think about what makes people love where they live (or wish to live) then connecting with the local community is essential. It’s a topic that helps identify the appeal of different areas, creates a competitive advantage and its part of what sets demand, value and prices. It’s an important part of underpinning the investment made and I think easily overlooked when determining local demand and values.
In some established parts of any city or suburb there’s usually an existing culture that appeals to buyers and extends way beyond for example a handful of shops.
Even when we are dealing with former industrial ‘brown-field sites’ you can sometimes find nearby fragments of neighbourhood, like a pub or local café. Not to mention the social footprint of the local residents who just happen to find themselves now living close to any number of new projects and new residents.
The dynamics of every major city are now caught up in this trend and as the podcast I referred to earlier explored the how the arts, a feeling of community and the economic interests of the area are all connected. These same points also form part of the work – life balance and even when we have a buoyant market, buyers want to know that the area, the community they are investing in has solid lifestyle appeal.
WHAT MAKES PEOPLE LOVE WHERE THEY LIVE?
As the density of urban areas increases every stakeholder – councils, planners, developers, investors and above all the residents know that the sense of place deserves more attention. A strong local identity described as a sense of place does, from a marketing perspective, create a competitive advantage and that will always influence prices paid in a particular area.
It will also influence future property values, they key factors feed into why areas experience strong demand form developers and buyers, it might be intangible and not directly articulated, but I think it’s worth devoting some time to the exploring.
The mix of community, the role of how creative a place feels, the physical appearance and the economic viability of a place all feed into this interesting mix.
Another factor, that we see in many suburbs is how quickly, as developments are finished and people move to the area, that it then changes. Over time this change might morph into ‘love of place’ and thus the community gives a big tick to the quality of planning and development.
Just what makes up the substance of creative place making, the factors that all come together in a desirable neighbourhood, can I think be pinpointed into three areas. These areas include – social appeal, accessibility (user-friendliness) and the aesthetics, the built environment. In combination they all sit behind the appeal of an area and individual projects, they are the marketing foundations and all directly impact prices and buyer demand.
The podcast I mentioned at the start of this discussion was mainly concerned about the role of the arts in helping to create or energise an area and community, however in my next post I want to look further at the role of creative place making as an vigorous part of the project development and marketing mix.
To read the second part of Peter's post, click here.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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Making a creative residential place Part One: Peter Chittenden

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What if the property sold at the reserve? How much could this have cost the vendor? Applying the what if? test.
If I was to say I was taken-back by the response provided by the auctioneer to a tweet I commented on it would be an understatement. Allow me to share with you the event; so quickly pour yourself a coffee and read on. 
Reports were floating, or should I say flying, around on social media over the weekend about the great achievements and results of an onsite auction in Granville. In the main, it was all to do with praise of the selling agent and the creative selling techniques I refer to as “sleight of hand illusion” to sell property, to be candid.
The fundamental questions asked by me on twitter, of the auctioneers tweeting, were simple and basic. Was it a case of “underquoting” or was it “ignorance” by the agency to not know the true value of the land? 
I didn’t believe the questions noted above, were out of line. Particularly when I looked at the facts of the auction campaign and paralleled these with results achieved. 
One thing is for sure: we can rule out “market forces” for the out of line result, as the tolerance on such a notion would be as I have previously mentioned in other articles, a mere 11% variable from the “price-guide”. A tolerance that is within the prescribed tolerance guides set in the State Agents Act VIC and FT NSW. 
The facts:
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<li>The property is advertised as having a lot of development potential </li>
<li>Agent seemingly appears to be targeting developers and the neighboring club</li>
<li>Property called on the market at $1,250,000 and sold for $2,781,000 </li>
<li>The achieved sale percentage above reserve is equal to 123% approximately</li>
</ul>
Now, somebody, I believe got it totally wrong. On face value it appeared like a classic case of “underquoting” but unless the documents signed by the vendor with the agent, which determines the price-guide are made public, we may never know. 
However, in this case I am leaning more to the belief that some agents simply don’t know the value of land. The value of the land with development potential in the current market, is what I am referring to. In the alternative, value of property that is not common to the local agent, such as the initial Millers Point auction fiasco.  Where the property owned by the State Government was gifted away. 
Reports of auction results
As we read through the different stories being published about the sale, there are conflicting accounts and statements that make one wonder if the correct price-guide and reserve was set. You may form your own opinion as you read on.
Working on land-banking and any other form of land acquisition by developers, to determine values may be as simple as: understanding “gross realization” of the project to be built on the land being acquired, determining “construction costs” and with all this, taking into account possible lot yields due to “State Planning” and “Council Planning” changes to zoning. 
In basic terms; what will be the “Return On Investment”. No developer likes to work on anything less than to double their money on what the land cost them. 
In essence, I am leaning to the belief that the property was misrepresented to be worth anything less than $2.5 million, particularly when we apply the Regulation’s tolerance factors on the face value of the end result. 
The question remains, what did the developers attending the auction know that the agent didn’t know, to turn up in droves? Now this is why a professional is used, to know and be in control and not allow the sale to be reliant on, a whim and a prayer or hope of a sunny day. 
My first question
But the question will remain however; was the agent aware and well versed in what was going on, as I received the tweet reply from the auctioneer? See below. 
My second question
The second question is: why was this tweet deleted from the auctioneer’s twitter-handle soon after it was sent to me as a response? Don’t you just love conspiracy theories? 
The What-If Test
However, the seriousness of the present situation stands. A problem that is amplified at the auction under scrutiny, highlighted by the results achieved. 
Agreeable, and although the results are beneficial to the vendor, this is a problem in the Real Estate Industry and one that demands closer attention. 
The concern once again is best explained and highlighted when we apply the What-If Test. 
<ul>
<li>What-If, the property was sold for $1,250,000 because it was presented with such a low price-guide in the first place, and</li>
<li>What-If, as the auctioneer replied: the agent got it right. As I understand, in pricing it low to attract the interest it got? </li>
</ul>
Now, What-If you are reliant on an agent or agency that is not aware of: council changes, market forces and true land values? What-If, the result is no more than the price the agent advised you, when they presented you with a market appraisal and set the price guide? 
In this instance, we may never know if it was a case of under-quoting or sheer ignorance, unless FT NSW investigates the reasons behind the 123% discrepancy in price-guide to end-sale. Like me, I’m sure you too are left with the thought: under-quoting or the agent got it wrong? 
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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