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.
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<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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New housing supply is expected to outpace demand mid 2018 with investors, upgraders and downsizers predicted to drive the national market during the short term.
BIS Shrapnel's Building in Australia 2015-2030 report, based on household formation per thousand of people, noted after sustained period of underbuilding, new dwelling supply is now exceeding demand and predicts the national deficiency will have been largely satisfied by 2018.
BIS Shrapnel associate director Dr Kim Hawtrey said national activity is forecast to begin trending down over the following three years (from 2014/15), with the 'high-flying apartments sector leading the way down'.
“After recording strong growth over the past few years, we estimate that total dwelling starts reached just over 210,000 in 2014/15, an all-time record high,” Dr Hawtrey said.
“Low interest rates have unlocked significant pent up demand and underpinned the current boom in activity, but as population growth slows while construction activity remains strong, new supply will begin to outpace demand.
"This will see the national deficiency of dwellings gradually eroded and some key markets will begin to display signs of oversupply.”
<a href="/images/2015/07/22/bis.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/22/bis.jpg" alt="" width="1248" height="769">
The report said despite a sharp decline in 2014/15 (-13%) non-residential building commencements are expected to bounce back in 2015/16 (+10%) to $33.42 billion (constant 2012/13 prices).
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mcrawford-f5HDUcy2ms

Housing supply outpaced by 2018: BIS Shrapnel

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DTZ, the global commercial real estate services company, has announced the acquisition of Queensland real estate agency, Wright Property Group.
Established in 2002 by Glen Wright, Wright Property has offices in Brisbane and the Gold Coast, specialising in industrial, commercial and retail agency, as well as property management base, project management and research.
Wright Property employs more than 50 staff in Queensland with over $1.3billion transactions in 2014/15.
The company will continue to operate under the Wright Property Group brand until the DTZ and Cushman &amp; Wakefield merger closes, which is expected before the end of the year
This acquisition marks another step in the growth of DTZ’s business in the Asia Pacific Region headed by DTZ chief executive for Australia and New Zealand, James Patterson. 
The combined businesses will now employ 1,550 staff across Australia and New Zealand and will generate revenues of more than $295 million. Following a number of recent facility management successes, James Patterson said DTZ was expecting to grow into a 1,800 strong workforce by the end of 2015. 
The global company completed $63 billion in transaction volume globally in 2014 on behalf of institutional, corporate, government and private clients. Headquartered in Chicago, DTZ has more than 28,000 employees who operate across more than 260 offices in 50 countries.
DTZ announced an agreement to merge with Cushman &amp; Wakefield in May 11.
The new company, which will operate under the Cushman &amp; Wakefield brand, will have revenues over $5.5 billion, over 43,000 employees and will manage more than 4 billion square feet globally on behalf of institutional, corporate and private clients. 
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jchancellor-FAypfDUnLy

 DTZ acquire Wright Property Group

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More than $1 billion in industrial property was sold in Melbourne for the year up to June with private investors accounting for 40% of total sales value.
A total of 648,324 square metres was leased during the same period, according to Savills July 2015 Melbourne Industrial Briefing.
The briefing found $1.47 billion of industrial property was sold in the year to June 2015 , with some investors choosing a “super” Prime category of industrial investment.
<a href="/images/2015/07/22/Screen%20Shot%202015-07-22%20at%2011.48.18%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/22/Screen%20Shot%202015-07-22%20at%2011.48.18%20AM.png" alt="" width="739" height="505">
The report noted factors such as capital raising, debt restructuring and the slowing of restrictions to debt finance have led to a return of Funds and Trusts investing in the market. Private investors, attracted by low interest rates and positive returns took a 40% market share of sales.
Owner-occupier purchases amounted to 12% of all stock priced higher than $2 million. The market under $20 million accounts for over half of all sales vale.
<a href="/images/2015/07/22/Screen%20Shot%202015-07-22%20at%2011.48.34%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/22/Screen%20Shot%202015-07-22%20at%2011.48.34%20AM.png" alt="" width="764" height="540">
Industrial leasing deals are higher than the decade average with 648,324 square metres leased from 92 deals. The previous year held 497,238 square metres of stock from 82 deals. This result suggests an improvement in conditions from an environment that has been a difficult
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The decade average prior to this year was 598,982 square metres per annum. 
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Melbourne industrial sales to June break $1 billion, rentals hit decade high

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Adrian Lane-Mullins is the incoming chairman of the RE/MAX Australia and New Zealand Board of Directors replacing the late Phil Kirby who stepped down in the past year due to health concerns.
The managing director Michael Davoren was interim chairman.
Lane-Mullins’ is managing director of Customercorp P/L Business Consultancy, a company he began 16 years ago.
Its client list includes RACQ-GIO Insurance Ltd and QBE Insurance Ltd.
RE/MAX managing director Michael Davoren said the board intentionally chose an independent chairman from outside the real estate industry.
Lane-Mullins sat in three board meetings before taking up the chair this month learning the complexities of real estate franchising.
RE/MAX was founded in 1973 by Dave and Gail Liniger, with 100,000 agents and more than 6600 offices provide RE/MAX globally across reach of 100 countries. 
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Adrian Lane-Mullins appointed RE/MAX chairman

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A 160-room Hyatt Place hotel and conference centre is envisaged for Essendon Airport.
Owners Lindsay Fox and Max Beck are adding the country's first Hyatt-branded business hotel to Melbourne's second terminal. 
The Essendon Fields chief executive Chris Cowan told The Australian Financial Review it was intended to meet the needs of business people in the north-west of Melbourne "who have very limited options."
The $60 million investment is the largest project for the airport which originally intended for closure after the opening of Tullamarine.
Essendon Fields, which was privatised in 2001, is a 300-hectare site.
There are also plans for a $20 million hangar project to service the growing private jet market.
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Hyatt Place hotel for Essendon Fields

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Modelling by Dixon Advisory has shown that property investors may not be able to have an investment portfolio unless they have funds in reserve for every year of their loans under APRA's tighter lending standards.
Investors may have to set aside more capital to secure their loans or be priced out of the purchasing market.
The Australian Prudential Regulation Authority this week instructed the main four banks and Macquarie Group to hold billions of dollars in extra capital to cover mortgage loans, with the change potentially passed onto customers in higher borrowing costs.
The changes will have significant ramifications for some investors who could be priced out of the market, Dixon Advisory's Nerida Cole told The Australian Financial Review.
The managing director of Dixon Advisory's financial advice division suggests some investors will need a larger deposit to reduce their loan-to-value ratio or buy cheaper properties.
"For borrowers who are in a strong financial position, [and have a] particularly strong surplus cash flow and low debt levels, they may be able to acquire the property of their choice," said Nerida Cole.
Modelling by Dixon Advisory has shown an investor who wants to buy a $1 million property could have to prove they will generate an additional $22,500 in cash a year under new standards, assuming a 20% minimum deposit. 
An investor with a $500,000 property could need up to $12,300 in additional cash a year, in calculations that assume principal and interest repayment at 7%, rental income of 4% (before the bank reduction of 20% is applied) and a marginal tax rate of 49%.
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Investors need set aside more capital to secure their loans: Dixon Advisory

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The retail section of the redeveloped beachside Wallis Building on Jetty Road, Glenelg has been fully leased with only three upstairs office and consulting spaces up for rent.
The retail space is split up between a tenanted ground floor of 811sqm and a first floor, 510sqm health club. 
Colliers International’s Ben Laycock said the three remaining upper level tenancies are suitable for offices and consulting rooms, range from 65sqm to 500sqm, and would suit a variety of uses including accountants, legal, corporate services, government departments and medical specialists.
 
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Redeveloped Wallis Building, Glenelg nearing full lease

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Melbourne's South East industrial property market is up nearly 60% on the previous 12 months to June, with key sales ranging between $63 million and $20 million.
According to figures released from Savills research, sales to June reached $616 million, up 75% on the five year average.
Savills’ Notting Hill office director, Lynton Williams said data for the research found 80 properties (over $2 million) sold in the 12 months to June, an 86% rise on the 43 properties sold across the South-East market in the previous 12 months and 70% up on the five year average of 47.
"The market had seen investment yields for prime industrial property in the South-East fall 50 to 100 basis points over the last twelve months to a current range of 6.75 to 7.75%," Mr Williams said.
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"Industrial yields are firming however they continue to offer some of the best returns of any asset class to investors while providing owner-occupiers with a premises with the potential to add to the business bottom line."
Savills’ Victorian Head of Research, Glenn Lampard said the 80 properties sold in the south-east comprised more than half of the 144 properties sold across Melbourne.
"The south-east was a significant contributor to the $1422 million in Victorian industrial sales in the year to June which was up from the $1305 million in the previous year and significantly up on the five year average of $950 million,’’ Mr Lampard said.
Key South-East sales included: (all agents deals) 
<ul>
<li>4 Kingsway Crt, Moorabbin - $22.6 million</li>
<li>13-15 Joel Crt, Moorabbin - $19 million </li>
<li>215 Browns Rd, Noble Park – $20.8 million</li>
<li>495 Blackburn Rd, Mt Waverley - $63 million</li>
<li>Estate One, Danendong South - $39.25 million</li>
<li>Kingston Distribution Centre, Braeside - $36.6 million </li>
</ul>
 
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Industrial sales up 60% in Melbourne's South-East

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Sydney’s three years of price growth has dragged the city up the capital city rankings for long-term capital growth, but only as high as fourth. 
Six months ago, it ranked sixth among the eight capital cities and still lags behind Perth, Melbourne and Darwin. This is for average annual growth in house prices over the past 10 years, which we survey regularly for the Capital Growth Superstars report.
Fourteen of Sydney’s Top 20 suburbs have long-term growth rates below 8% per year - not nearly good enough to make the Top 20 lists for Melbourne, Perth or Darwin.
No suburb in the vast Sydney metropolitan area has a double-digit growth rate. The best is Pemulwuy (median price $720,000) in the city’s western suburbs, with a long-term growth rate of 9.5% per year. Most of the suburbs in the Top 20 have growth rates in the 7.0% to 8.0% range.
At first glance, it appears that the Top End suburbs dominate Sydney’s Top 20 list, as 19 of the Top 20 (all except Pemulwuy) have median prices above $1 million. But, in fact, these are mostly suburbs a tier below the top end. 
In Sydney, the 15 most expensive suburbs all have median house prices above $2 million. None of the 20 most expensive suburbs (all with median prices above $1.9 million) make the Sydney’s Top 20 list for long-term capital growth. Most of them have growth rates below 5% per year.
Sydney’s Top 20 is dominated by 15 suburbs in the $1 million to $1.5 million range, which is Sydney’s second tier market.
This is a change from other surveys in the past three years, which have strongly featured the cheaper end of the Sydney metropolitan market. The growth of the past 2-3 years has elevated some of the more expensive areas.
The outstanding precinct is the Ryde LGA on the lower North Shore, which has four suburbs in the city Top 20. Ryde is the only municipality with more than two suburbs in the Top 20. Its four top suburbs are Eastwood, Ryde, Denistone East and West Ryde, all with median prices in the $1.1 million to $1.3 million range.
The prestige end of the market, suburbs with median house prices above $2 million, continues to deliver poor capital growth rates. Indeed, three of the most expensive suburbs of Sydney are included in the Bottom 20 list of suburbs with the worst growth rates in the city.
Vaucluse (median $3.4 million), Palm Beach (median $2.6 million) and Clontarf (median $2.5 million) all have growth rates of 2.1% per year or less. Clontarf’s 1.3% grow rate means it would take 55 years for property to double in value (compared to eight years for Pemulwuy, which has Sydney’s best growth rate).
There are four other million-dollar suburbs on the Bottom 20 list.
The worst precinct in Sydney for capital growth is the Sutherland LGA in the south of the metropolitan area – it has four suburbs (Burraneer, Bundeena, Lilli Pilli and Illawong) on the Bottom 20 list, all with growth rates below 2% per year.
Sydney’s Top 10 for long-term capital growth is:-
1 Pemulwuy 9.5%
2 Waitara 9.2%
3 Homebush 8.7%
4 Burwood 8.6%
5 Bondi 8.0%
6 Darlington 8.0%
7 Hurstville 7.8%
8 North Willoughby 7.8%
9 Haberfield 7.6%
10 Hurlstone Park 7.6%
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> 
Terry was recently joined by Property Observer editor at large Jonathan Chancellor for a webinar on why research is the key to successful property investing in 2015. You can download slides and audio from the webinar here.
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Sydney's top 20 suburbs for growth rates: Terry Ryder

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The Reserve Bank of Australia (RBA) was invited to make a submission to the Inquiry into Home Ownership. It's well <a href="https://www.rba.gov.au/publications/submissions/inquiry-into-home-ownership/pdf/inquiry-into-home-ownership.pdf" target="_blank">worth a read</a>. A few of the key points are summarised below.
Home ownership rates
While the media headlines chose to focus almost exclusively on a brief reference to tax legislation reform towards the end of the report, generally the Reserve was fairly moderately positioned in its viewpoints.
Home ownership rates at the time of the last Census in 2011 sat at 68 per cent, which represents a moderate decline, yet also a fairly stable result over the past five decades. Before the 1970s, home ownership rates were considerably lower.
<a href="/images/2015/07/21/rba1.jpg">Click to enlarge</a>
<img src="/images/2015/07/21/rba1.jpg" alt=""> 
In particular, notes the RBA, home ownership rates in metropolitan regions were typically very low until the 1950s.
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<img src="/images/2015/07/21/rba2.jpg" alt=""> 
 
Home ownership rates in Australia today are fairly high compared to most of the world, and a little higher than those in several of the other most comparable countries.
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<img src="/images/2015/07/21/rba3.jpg" alt=""> 
Age of home ownership
The data compiled by the RBA does show that the share of home-owning households in the 25-34 age bracket has declined over the past quarter of a century since 1980.
<a href="/images/2015/07/21/rba4.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/21/rba4.jpg" alt="">
In part, this has been due to higher house prices, although the RBA also notes that people are doing most things later than they used to. For example, the median age of first marriage for women in 1974 was just 20.9 years.
There have also been a number of other significant demographic shifts according to the RBA, including higher divorce rates and an increase in the number of single-parent households.
The submission spent some time musing over the complex relationship between housing affordability and home ownership, where all is not quite as clear as it initially might seem.
For example, as the above chart shows, much of the decline in home ownership rates between the ages of 25 and 34 took place in the early 1980s, before the run-up in house prices, rather than after it.
Furthermore, in a curiously reflexive manner home ownership rates can oftentimes be lower in more affordable locations, with Queensland and South Australia having the lowest home ownership rates of the Australian states. 
Another point raised by the RBA which is rarely discussed is that for some people renting makes more sense at certain points in their lives, particularly given the increased mobility of the modern labour force and the heavy transaction costs involved in buying and selling property.
The submission also spent some time looking at the composition of net immigration, including the projected surge in student arrivals. New South Wales and Victoria receive a disproportionate share of foreign students, with more than two-thirds of student migrants heading to those states (and to Sydney and Melbourne in particular).
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<img src="/images/2015/07/21/students.jpg" alt="">
 
Mortgage serviceability and the deposit hurdle
Demand for housing was boosted for property in the 15 years or so to 2005 by financial deregulation and the structural shift to low interest rates, notes the RBA.
Thanks primarily low mortgage rates, initial repayments on new housing loans as a share of household disposable income are presently significantly lower than they have been, and are hovering well below the decade average.
<a href="/images/2015/07/21/rba5.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/21/rba5.jpg" alt=""> 
 
The flip side to this is that rising house prices may require a higher deposit. It's also worth noting that households with two incomes today clearly have a significant advantage over those with a solitary income earner.
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 <img src="/images/2015/07/21/rba6.jpg" alt="">
However, the RBA does point out that 20 per cent deposits are no longer a requirement for first time buyers, where a 5 or 10 per cent deposit can often suffice:
"The maximum loan-to-valuation ratio (LVR) available in the Australian mortgage market has increased noticeably over recent decades, from the 80 per cent typical in the pre-deregulation period to around 95 per cent at present. 
Equivalently, the deposit required of a first home buyer is no longer necessarily around 20 per cent of the purchase price, but rather, more often in the 5–10 per cent range.
This shift would have eased the accessibility constraint imposed by the deposit requirement more than would be apparent from a simple comparison of a fixed percentage of the median purchase price over time.”
In a discussion which is overwhelmingly dominated by generalisations it's inevitably tough to avoid generalising, but there's no doubt that housing markets close to the centre of Sydney have unsurprisingly become very expensive, with the population of the harbour city imminently set to surge past 5 million.
Though I don't follow the Melbourne market closely, I assume that inner city Melbourne presents similar dynamics.
The RBA submission implies that with a 5 per cent deposit requirement, areas further from the city are likely to present a more realistic entry point for first time buyers. 
Unfortunately many first-time buyers in Sydney are not so keen on living in the more affordable areas such as Blacktown or the Canterbury-Bankstown region.
Based on the limited sample of first-time buyers I come into contact with, many prefer to buy an investment property in a so-termed "secondary location" and rent somewhere closer to the city themselves.
"Be careful what you pray for..."
Probably the most significant part of the RBA submission for my money was the section noting that there are "no examples of large falls in nominal house prices" either in Australia or overseas without there being significant reduction in the capacity to pay (which generally means very high interest rates, a deep recession or high rates of unemployment):
"There are no examples internationally of large falls in nominal housing prices that have occurred other than through significant reduction in capacity to pay (e.g. recession and high unemployment). 
There is no mechanism to get a large and sustained level shift down in prices while a substantial fraction of the population can – safely and sustainably – service the obligations involved in paying the higher price.“
This echoes closely what housing economist Michael Oxley argued in London back in 2004. While an increase in the supply of dwellings is both necessary and desirable, this alone will not cause a material correction in house prices while the capacity for households to repay existing mortgage debt remains comfortable. 
In larger cities, where only a small percentage of the housing stock is new in any given year, this is even more so the case.
This suggests that the risks of a material housing market correction are considerably higher in smaller cities and towns where unemployment rates are elevated - or at risk of becoming so - and where the new supply of dwellings as a percentage of existing stock can be higher.
Tax legislation
While the Pavlovian response in the media headlines called for a review of "negative gearing" legislation, what the submission really appears to be hinting at is a review of the way in which tax deductions on interest repayment interact with the capital gains tax discount in order to encourage property investment.
The RBA notes that tax legislation also to some extent favours owner-occupiers since capital gains are tax free and there is no taxation on imputed rent - although there are no deduction on owner-occupier mortgage repayments in Australia.
Recent data suggests quite clearly that a greater number of Australians are leaning towards buying property as an investment rather than as a home.
<a href="/images/2015/07/21/HF3.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/21/HF3.jpg" alt="">
 
While unsurprisingly and perhaps reassuringly the greater share of household debt is held by those who can afford it - higher than average income earners - equally the evidence that wealthy Australians are "rorting" negative gearing through residential property as a tax shelter seems rather sketchy.
More than 90 per cent of those using negative gearing deductions are claiming deductions on only one or two investment properties - and nearly three quarters of them are claiming on just one.
As such, if the wealthy citizens of Australia are trying to rort this so-called "tax shelter" that is the prevailing tax legislation, they don't seem to be doing so very effectively.
Realistically, most genuinely wealthy Australians have better things to do with their money than rack up net rental losses through negatively gearing investments in the cottage industry that is property investment.
Noted the RBA:
"The ability to deduct legitimate expenses incurred in the course of earning income is an important principle in Australia’s taxation system, and interest payments are no exception to this. 
To the extent that negative gearing induces landlords to accept a lower rental yield than otherwise (at least while continued capital gains are expected), it may be helpful for housing affordability for tenants".
Sydney boom
Finally, the RBA submission somewhat unsuccessfully attempted to divert some attention away from the booming Sydney property market through suggesting that the ratio of house prices in Sydney to those in other capital cities is merely reverting to trend.
<a href="/images/2015/07/21/sydney.jpg" target="_blank"> Click to enlarge</a>
<img src="/images/2015/07/21/sydney.jpg" alt="">
 
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>. 
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>.
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