<p><a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.</p>

<p>The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.</p>

<p>Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.</p>

<p>The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.</p>

<p>The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments</p>

<p><img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" /></p>

<p>Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.</p>

<p>But one of the biggest components of the proposal is what sits between the buildings.</p>

<p>Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.</p>

<p>The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.</p>

<p>Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.</p>

<p>SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.</p>

<p>The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.</p>

<p>The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.</p>

<p>Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.</p>

<p><img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" /></p>

<p>SP Setia plans to deliver the development across three stages.</p>

<p>Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.</p>

<p>If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

<p>Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.</p>

<p>Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.</p>

<p>The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.</p>

<p>“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.</p>

<p>"Eight residences is exceptionally boutique, but that's precisely what this site calls for.</p>

<p>“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”</p>

<p><img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" /></p>

<p>The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.</p>

<p>The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.</p>

<p>The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.</p>

<p><img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" /></p>

<p>The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.</p>

<p>It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.</p>

<p>Heritage has subsequently played a significant role in Cera Stribley's design.</p>

<p>The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.</p>

<p>Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.</p>

<p><img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" /></p>

<p>Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.</p>

<p>A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.</p>

<p>A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.</p>

<p>Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.</p>

<p>Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.</p>

<p>The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.</p>

<p>Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.</p>


Lowe Living unveils Middle Park apartment development

<p data-end="288" data-start="269"><strong data-end="288" data-start="269">Article summary</strong></p>

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289"><strong data-end="374" data-start="291">DVB Projects is preparing to launch its second Gold Coast apartment development</strong>, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443"><strong data-end="513" data-start="445">The 34-level tower will comprise just 49 ultra-luxury residences</strong>, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574"><strong data-end="646" data-start="576">The launch follows strong demand at DVB's nearby Sea Glass project</strong>, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718"><strong data-end="787" data-start="720">The development adds to the transformation of Old Burleigh Road</strong>, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<p data-end="1011" data-start="790"><a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.</p>

<p data-end="1296" data-start="1013">The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion</p>

<p data-end="1296" data-start="1013"><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" /></p>

<p>The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.</p>

<p>“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;</p>

<p>“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."</p>

<p>Brown says the site itself is "exceptional."</p>

<p>"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." /></p>

<p>The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.</p>

<p>A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.</p>

<p>Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" /></p>

<p>Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.</p>

<p>“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.</p>

<p>“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.</p>

<p>“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" /></p>

<p>Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.</p>

<p>With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.</p>

<p>[smartcode_project_cta:default project_id=145141]</p>


DVB Projects to launch second Broadbeach apartment tower as demolition commences

<p><a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.</p>

<p>Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.</p>

<p>The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.</p>

<p>The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.</p>

<p>A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.</p>

<p><img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" /></p>

<p>The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.</p>

<p>"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.</p>

<p>"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."</p>

<p>The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."</p>

<p>Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.</p>

<p>Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.</p>

<p>The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.</p>

<p>The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.</p>


First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<p><a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;</p>

<p>Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.</p>

<p>[smartcode_project:default project_id=107520 project_image_fid=367193]</p>

<p>The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;</p>

<p>Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;</p>

<p>"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.</p>

<p>"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."</p>

<p>[smartcode_project:default project_id=107520 project_image_fid=367183]</p>

<p>Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;</p>

<p>"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;</p>

<p>Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.</p>

<p>The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;</p>

<p>[smartcode_project_cta:default project_id=107520]</p>


The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

Construction

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<p>Christmas always puts a deadline on things. For Property Bloom this year it's completing four development projects before the big man with the white beard arrives.</p>
<p>Of course our builder and all their tradies are under the pump at this time of year and our job as project managers really comes into play.</p>
<p>Our goal is not only to have the dwellings completed with Occupation Certificates (OCs) issued, but also <strong>tenanted</strong> before Christmas. And I've found a way to achieve this.</p>
<p>It's called supporting your site manager.</p>
<p>Rather than micro manage our site managers which just drives people crazy, we try to help them by giving them a hand. They feel supported and at the end of the day, we are all on the same team striving for the same result: Happy clients.</p>
<p>Here's an example. I'm doing two Practical Completion (PC) inspections this week and I have a tool I'm going to take along that should help. It's a bottle of Spray and Wipe.</p>
<p>Because we are pushing the process, we'll often get asked to move the PC date so they can be completely ready. But I don't want to give our builder another few days. Because right now, we literally don't have them.</p>
<p>We want tenants settled in before Christmas, we need the properties to look their best because on the same day we do our PC inspection, our appointed property manager will be taking photos and uploading the properties onto the Internet. This way we can advertise for tenants during the PC and Handover period.</p>
<p>The Handover period is the time after PC when the builder has seven days to complete any outstanding items we've picked up and before the bank pays the builder's final drawdown. Once the builder receives their payment, they release the keys to the owner and the dwellings come off construction key. That is literally the Handover date and of course a tenant can't move in before Handover.</p>
<p>Once asked to pay the final invoice, the bank typically take about a week, sometimes longer to send their valuer to check construction has been completed then transfer the money to the builder.  Before they release the final payment, they will have conditions such as receiving a copy of the OCs, and a copy of a building insurance policy in the name of the owners. </p>
<p>This week or two is valuable and we use it to show potential tenants and hold open homes. We can do this because we have a great relationship with out builder and they will allow access BEFORE Handover. That's pretty unusual for a builder. But it means tenants are lined up as keys are handed over, which results in zero vacancy time for our clients.</p>
<p>So back to the PC inspection. My theory is that we set a date for PC and we do all we can to get the project to that stage. By having a deadline, more action is taken. I've found that there ends up being only minor items to attend to if any at all, because the site manager has done all he could to meet the deadline.</p>
<p>Short of bringing a pair of white gloves, I am fussy at these inspections. But some things just need a bit of elbow grease. So the bottle of Spray and Wipe comes out and we can clean the spots as we go through the property. It's so much easier than adding it to a list and having to wait for cleaners to come back. Of course I do draw the line at mopping floors, but small marks can easily be removed along with the fine layer of dust that always seems to settle on the kitchen benches a day after the construction clean is done.</p>
<p>I'm looking forward to Christmas this year but there's still a bit of work to be finished before the champagne is poured and prawns are peeled. </p>
<p><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></p>
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jochivers-wq5Bp59R5a

Countdown to construction completion: Jo Chivers

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<p><span>GUEST OBSERVER</span></p>
<p><span>Narrow lot designs will be one of the key changes to the home building market in 2016 as it has also been for 2015. It’s no secret that land sizes are becoming smaller to cater for the growing population.</span></p>
<p><span>According to the December 2014 report ‘A PLAN FOR GROWING SYDNEY’ by NSW Government Planning and Environment* – over the next 20 years, the population in Sydney will grow much faster than in the last 20 years. The report states that, “Projections indicate that Sydney will need around 664,000 additional homes over the next 20 years. New housing will be needed in greenfield locations and the established urban area. Providing housing in a variety of sizes, types and locations will be essential to meeting Sydney’s future housing need."</span></p>
<p><span>To respond to these issues, the Government will introduce planning controls and work with the development industry to increase the number of homes in established urban and development areas. The government is also encouraging innovative, well-designed, smaller homes to suit lifestyles and budgets of the growing population. </span></p>
<p><span style="line-height: 1.3em;">With smaller block sizes, it means more demand for innovative designs that don’t compromise on space. Some people won’t consider buying a block of land unless it has the space they need for their ideal home. All builders are becoming savvier about the way they build a practical ‘family home’.</span></p>
<p><span>As well as narrow block designs, there are many other trends and buyer behaviour that Allworth Homes predicts for 2016.</span></p>
<p><span><strong>1.      Knock-down rebuilds will continue to increase.</strong> </span></p>
<p><span>Home buyers are realising re-building a brand new home on their existing property is beneficial in the long run, financially and logistically. We have seen a marked increase in the number of re-build sites at Allworth Homes and are confident these numbers will keep rising in 2016. We believe this trend comes down to people crunching the numbers around associated costs relating to ‘moving’ compared to building ‘new’. Mixed with the fact that they are future proofing the resale of their home down the track, it’s a clear winner as to why people are choosing to go down this road.</span><span style="line-height: 1.3em;"> </span></p>
<p><span><strong>2.      Buyers are demanding more transparency. </strong></span></p>
<p><span>People are now more educated about what’s involved in building a new home but are still drowning in uncertainty around costs. Buyers want transparency up front. They want to know what they’re in for. Allworth Homes promotes a ‘Ready To Live’ price at every display home door. </span></p>
<p><span style="line-height: 1.3em;">We have been pricing homes on various sites for so long we feel confident in promoting an all up price that will be very close to the final quotation. There are some conditions relating to lot size, services and site fall but in the majority of cases, our ‘Ready To Live’ price should be spot on.</span></p>
<p><strong style="line-height: 1.3em;">3.      Buyers are future proofing their homes for multigenerational living.</strong><span style="line-height: 1.3em;">  </span></p>
<p><span style="line-height: 1.3em;">A lot of new home buyers are now following the trend toward ‘future-proofing’ their new home design. That is, designs that allow, with a small amount of renovation work, a former living area to be converted into sleeping accommodation with bathroom access, for example. Homes with versatile spaces that can be used in different ways and accommodate multi-generational living will continue to be in high demand in the coming years.</span></p>
<p><span><strong>4.      High land prices in Sydney will make it tougher for First Home Buyers entering the market. </strong></span></p>
<p><span>This is an unfortunate reality that doesn’t need much explanation. We are seeing a decrease in the amount of sites for first home buyers can afford in Sydney and with the reduction in the First Home Owners Grant, we expect those numbers to keep dropping.</span></p>
<p><span>Good news is this may be short lived. With major land release planned and lot sizes decreasing, competition amongst developers should see land priced within the in reach of first home buyers in Sydney late 2016 – 2017.</span></p>
<p><span><strong>5.      </strong>A tighter market and major developers focussing on ‘Mum and Dad’ buyers will see the return of the discerning traditional buyer, pushing solid long-term contract home builders to the fore. Newer, speculative builders once reliant on a burgeoning market will have to re-invent themselves to survive.</span></p>
<p><span><strong>6.      </strong>The shortage of bricklayers and subsequent increased labour costs has seen many builders turning to alternate materials. These alternates - do they pass conservative NSW buyers ‘knock test’? Do they provide adequate termite protection? Long term maintenance issues. resale values… all questions buyers will consider in their decision. Whilst Allworth Homes is considering alternatives to brickwork, none have yet passed muster for us. Allworth are sticking with brick at this stage. More bricklayers will be freed up by the builders going other ways and we feel brick will be people’s number one choice for some time.</span></p>
<p>Stephen Thompson is managing director, <a href="https://allworthhomes.com.au" target="_blank">Allworth Homes</a>.</p>
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jchancellor-FAypfDUnLy

2016 home building trends and predictions: Stephen Thompson

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<div>Total construction work done in Australia has declined by 3.7% over the past year in seasonally adjusted terms. Let's take a look in two short parts at what this actually means.</div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">Part 1 - Total construction</span></strong><br><strong><span style="text-decoration: underline;"><br></span></strong>
</div>
<div>Total construction work done in the third quarter of 2015 declined by 3.7% to $49 billion on a seasonally adjusted basis. </div>
<div> </div>
<div>Despite a lift in residential building work done (+2.0%), there was a decline in non-residential building (-1.9%), and as widely expected engineering construction fell sharply (-7.3%) to be -11.7% lower over the year.<br><br>The green shaded area which records construction work done in chain volume measures terms shows that the unwinding of the resources construction boom has a way to run yet. </div>
<div> </div>
<div>Quarterly engineering construction work done has declined from a peak of $34 billion to around $25 billion, but given the weakness in commodity prices - and given that in the same quarter a decade ago activity was just $13 billion - the decline surely has a long way to go.</div>
<div> </div>
<div><a href="/images/2015/11/26/A1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/11/26/A1.jpg" alt=""></div>
<div> </div>
<div>
<div>The decline in engineering construction this quarter was driven by an overdue reversal in Western Australia, and to a lesser extent a decline in Queensland, as mega-projects begin to wind down. </div>
<div> </div>
<div>Activity in the Northern Territory continues to track at a historically exceptionally high level of $2 billion, accounted for primarily by the massive Ichthys LNG project.</div>
<div> </div>
<div><a href="/images/2015/11/26/A2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/11/26/A2.jpg" alt=""></div>
</div>
<div> </div>
<div>
<div>While non-residential building and major renovations have contributed little of significance to the rebalancing of the economy, new house building and "other residential" building (apartments, units, townhouses) have effectively done everything that could have been expected of them in response to low interest rates.</div>
<div> </div>
<div>Total building work done of $24 billion represents a solid 6.4 per cent increase over the year, with no thanks to the non-residential sector.</div>
<div> </div>
<div><a href="/images/2015/11/26/A3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/26/A3.jpg" alt=""></div>
<div> </div>
<div>
<div>These high level numbers should present an idea of some of the challenges facing the economy given that housing starts are projected to decline from pretty much now, while the decline in engineering construction may only be half way done. </div>
<div> </div>
<div>Even now I'm still not sure anyone really has a satisfactory answer for what is going to fill this gaping hole while commodity exports ramp up. Given the expansion of Australia's population the obvious answers should come under the heading of "infrastructure" but if there's a coherent plan for that being discussed anywhere I haven't heard of it.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Part 2 - Building work by state</span></strong></div>
<div> </div>
<div>Victoria has been the king of building work through this cycle, with New South Wales following in second place, these states being home to the two capital cities with the strongest dwelling price gains.<br><br>Indeed, Melbourne is a fine illustration of why it is important for market analysts to pay close heed to both demand and supply factors when forming their views. The Victorian capital has been building both houses and units like billy-o since 2010 - the source of a thousand crash predictions - yet vacancies and stock on market are both falling, and the market seems to be gathering momentum again.</div>
<div> </div>
<div><a href="/images/2015/11/26/A4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/26/A4.jpg" alt=""></div>
<div> </div>
<div><span>While there has been a reasonable response from the house building sector since 2012, approvals data shows that this market is running out of puff for the cycle, and has probably all but peaked already.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/11/26/A5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/26/A5.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<span>On the other hand the "other residential" sector continues to surge to record heights (this has been visible in the largest cities to anyone with a working pair of eyes...always knew those gauges were dodgy!), the new high rise building boom being the defining dynamic of this market cycle.</span><br><br><span>Building work in this sector is at historical highs in Victoria, New South Wales, Queensland, and Western Australia, with over-building of high rise apartments evident in parts of Brisbane and Melbourne.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/11/26/A6.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/26/A6.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>If you've been following this blog for the last couple of years, you will appreciate that the systemic risks in the housing market are obviously apparent and buried within this final chart. Would-be market shorters should dig deeper here.</div>
<div> </div>
<div>There have long been indicators of overbuilding in the high rise markets of inner city Melbourne and Brisbane, with a high proportion of new build sales being made offshore, especially to China.</div>
<div> </div>
<div>The storm clouds were gathering for off-the-plan buyers well before APRA's intervention, but recent tightening measures to lending procedures could well be the factor which nails on the correction for this sector. </div>
<div> </div>
<div>How many buyers who put down trifling holding deposits will fail to settle if lenders demand a 20 per cent deposit prior to completion? Perhaps up to a third could be in trouble, and will be juggling personal finances as we speak. </div>
<div> </div>
<div>Could get messy. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
</div>
</div>
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pwargent-M4siyDbqQY

Construction trends (off-the-plan mess) Pete Wargent

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<p style="text-align: left;" align="center">SPONSORED POST</p>
<p style="text-align: left;" align="center"><span style="line-height: 1.3em;">An Australian property developer’s latest residential tower is poised to become the centrepiece of one of Sydney’s next urban activation precincts. </span></p>
<p style="text-align: left;">Fully-integrated property developer <em>TOGA</em> is set to unveil <em>One Twenty Macquarie</em>, a residential tower located on Herring Road; Macquarie Park’s thriving central-Boulevard under NSW Government’s Urban Activation Precinct program. </p>
<p style="text-align: left;">Due to launch in 2016, <em>One Twenty Macquarie </em>is a23-storey residential tower designed by award-winning Surry Hills architects <em>Turner</em> and will comprise approximately 200 luxury residences, landscaped gardens, parking and a stylish retail café at its ground level.</p>
<p style="text-align: left;">Perhaps One Twenty Macquarie’s most impressive feature is its urban-backyard; a 460sqm landscaped resident’s garden boasting outdoor seating, a striking timber pergola, barbeque facilities, a reflection pond and break-out leisure spaces.</p>
<p style="text-align: left;"><em>TOGA Chief Executive Fabrizio</em> <em>Perilli</em> said the design of One Twenty Macquarie utilised the site’s prime location to offer buyers a sophisticated lifestyle at the heart of a convenient CBD precinct.  </p>
<p style="text-align: left;">“One Twenty Macquarie captures the changing face of Sydney – sleek apartment living with the convenience of shops, restaurants and transport on your doorstop,” Mr Perilli said.</p>
<p style="text-align: left;">“The strong demand for this postcode reflects Macquarie Park’s tremendous growth,” he said.     </p>
<p style="text-align: left;">Located at 120 Herring Road, the building is positioned 16 kilometres from Sydney CBD and 450 metres from Macquarie University, Macquarie Shopping Centre and Macquarie University railway station. </p>
<p style="text-align: left;">“This is convenient, carefree living at its best,” Mr Perilli added.</p>
<p style="text-align: left;">Residences at One Twenty Macquarie will boast generous balconies capturing sweeping views to Sydney CBD and across the North Sydney, Chatswood and Homebush districts as well as views overlooking sprawling Lane Cove National Park.</p>
<p style="text-align: left;"><em>Turner Associate Director Kevin Driver </em>said One Twenty Macquarie was designed to unite city life with nature.</p>
<p style="text-align: left;">“One Twenty Macquarie sits as a pavilion in a parkland setting, offering high level amenity, coupled with a proximity to both a vibrant centre and lush, verdant nature,” Mr Driver said.</p>
<p style="text-align: left;">The building’s exterior design presents a tapered façade characterised by white linear ribbons and a distinctive angled ‘floating’ roof form.</p>
<p style="text-align: left;">Macquarie Park is the second largest business district in NSW, boasts the largest suburban shopping centre in NSW and is projected to be Australia’s fourth largest CBD by 2030. Pointing to Macquarie Park’s growth, TOGA has a significant portfolio of more than 800 apartments completed and under construction in the area.</p>
<p style="text-align: left;">One Twenty Macquarie’s market debut is highly anticipated following TOGA’s sold out (completed) 618-apartment development <em>Macquarie Central</em> and <em>Macquarie Green; </em>an 80 per cent sold 164-apartment development launched in October this year.  </p>
<p style="text-align: left;">Established in 1963, TOGA is a fully-integrated Australian owned and operated property developer and hotelier with a portfolio across Australia, New Zealand and Europe.</p>
<p style="text-align: left;">For over 50 years TOGA has successfully completed world-class developments across Australia and currently has four major projects under construction; <em>Highpoint</em>,a 448-apartment development in Hurstville, <em>Macquarie Green</em><em>, </em>a 164-dwelling apartment and townhouse development in North Ryde, <em>The Chatswood</em>, a 156-apartment development in Sydney’s Lower North Shore and <em>Harbourfront Balmain</em>, a 121-apartment development on 150 metres of prestige waterfrontage.</p>
<p style="text-align: left;">Construction of One Twenty Macquarie is expected to complete in late-2018.</p>
<p style="text-align: left;">TOGA is now accepting registrations of interest for One Twenty Macquarie <a href="https://www.onetwentymacquarie.com.au" target="_blank">here</a>.</p>
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Toga leads the residential renaissance at Macquarie Park

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<p><span>GUEST OBSERVER</span></p>
<p><span style="line-height: 1.3em;">The introduction of legislative changes which require directors of construction companies to undertake mandatory formal education qualifications in business management will help reduce construction insolvencies.</span></p>
<p>The latest ASIC Insolvency Statistics to June 2015 highlights that of the 9,177 companies placed into insolvency during the 2014-15 financial year, 1,590 (17.3%) were from the construction industry. Annual financial losses attributable to the construction industry are estimated to be around $2 billion. </p>
<p>Transcripts from the current Senate inquiry into insolvency in the Australian construction industry emphasise the need for further education of company directors. Findings will be released on 3 December 2015.</p>
<p>Historically, construction is the most prominent industry represented in Australia’s insolvency statistics as reflected in ASIC’s Insolvency Statistics report. </p>
<p>If mandatory business management education was introduced which better equips directors to deal with economic and environmental changes impacting their businesses, I believe the insolvency figures for this sector could be reduced by hundreds of companies each year. The registered clubs industry provides an excellent framework to follow from an education perspective.<span style="line-height: 1.3em;"> </span></p>
<p>A second issue that needs to be addressed is subcontracts being paid in a timely manner by the head contractor or larger organisations. The solution could possibly be the cascading of credit terms.  Smaller contracting firms are often put under significant financial pressure by a larger organisation’s long payment lead times which is contributing to many falling victim to insolvency.</p>
<p>From 1 July 2013, a training framework for club industry directors and managers came into effect under The Registered Clubs Amendment (Training) Regulation and will be enforced from 1 July 2016. Directors in this industry are required to undertake two courses.  These include Director of Foundation and Management Collaboration and also Finance for Club Boards, conducted by Clubs NSW and approved by the Director General of The Office of Liquor, Gaming and Racing.</p>
<p>If business management education is to be made mandatory for the construction industry, training requirements need to be legislated and training providers such as the Master Builders Association should be government accredited to deliver this training. </p>
<p>The key message identified in the transcripts from the present Senate inquiry relates to the current deficiencies of the professional training regime in the industry. In short they simply don’t exist. Senator Doug Cameron highlighted a lack of training in the industry due to the allocation of financial resources elsewhere, while the Australian Institute of Building contends that professional qualifications are needed and also that the industry lacked financial skills.</p>
<p>My recommendation is that the current White Card certification system, which is used by Work Cover is enhanced for those seeking to become directors or sole traders of construction businesses to include business management skills. TAFE could also introduce as a mandatory inclusion, a business management unit in all of its construction courses.<span style="line-height: 1.3em;"> </span></p>
<p>The Senate inquiry is a positive step however it has been done before with few changes emanating from it. Therefore the appropriate information needs to be extracted from the inquiry and then passed onto the Economics Reference Committee Senators to implement suitable changes including new legislation to address the industry shortcomings.</p>
<p>There are several reasons why the construction sector has the highest levels of insolvency in the country. These include the barriers to entry into this industry are relatively low, with businesses allowed to enter and exit with little intervention or opposition from authorities. At the smaller end of the industry, clandestine companies can be set up on a project by project basis with directors using the corporate veil to protect themselves from financial accountability.</p>
<p>At the bigger end of the spectrum, the construction industry is highly volatile as it is significantly affected by economic, environmental and political factors. The large sums of money that are involved with this sector make it vulnerable to changes such as fluctuations of the Australian dollar, building and sustainability industry policy changes and urban development amendments made at State and Federal government levels.</p>
<p>The construction industry creates thousands of jobs each year and generates tens of billions of dollars for the economy. The government needs to act immediately to reduce insolvencies within this sector. One of the most effective ways to achieve this would be the implementation of legislation requiring all directors and managers working within the construction industry to acquire accredited business management qualifications.</p>
<p><span style="line-height: 1.3em;"> </span></p>
<p><em>Sean Wengel is insolvency principal, William Buck and can be contacted <a href="https://www.williambuck.com" target="_blank">here</a>.</em></p>
<p><strong> </strong></p>
<p><strong> </strong></p>
<p><span> </span></p>
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Mandatory education needed to reduce construction insolvencies: Sean Wengel

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<p>Since the inception of the Apartments.com.au crane count, the number of tower cranes has never failed to decrease on a period to period basis.</p>

<p>This remains the case once more, with the second and final count of 2015 revealing a record number of tower cranes dotted throughout metropolitan Melbourne. At our best assertion, the current number stands at 144. This compares to an October 2014 count of 110 and a <a href="/news/the-biannual-urbancomau-crane-count-march-2015">March 2015 figure of 131</a>.</p>

<p>The continual movement of the figure upwards points toward the exceptionally strong residential sector, which accounts for a massive 81% of all tower cranes currently in use.</p>

<table border="1" cellpadding="1" cellspacing="1" style="width: 100%">
<thead><tr>
<th>Sector</th>
			<th>Tower cranes</th>
		</tr></thead>
<tbody>
<tr>
<td>Residential</td>
			<td>117</td>
		</tr>
<tr>
<td>Commercial</td>
			<td>17</td>
		</tr>
<tr>
<td>Education / student housing</td>
			<td>1</td>
		</tr>
<tr>
<td>Hotel use</td>
			<td>2</td>
		</tr>
<tr>
<td>Demolition use</td>
			<td>1</td>
		</tr>
<tr>
<td>Health and medical research</td>
			<td>2</td>
		</tr>
<tr>
<td>Retail</td>
			<td>4</td>
		</tr>
<tr>
<td><strong>Total</strong></td>
			<td><strong>144</strong></td>
		</tr>
</tbody>
</table>
<h2>South east in form</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/img_7553.jpg" rel="gallery-all" title="Chadstone stands as a highly visible project under construction"><img alt="" class="image-article-full-width-580px" height="387" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/img_7553.jpg?itok=-SN_aVgi" title="Chadstone stands as a highly visible project under construction" width="580"></a>

<figcaption>Chadstone stands as a highly visible project under construction</figcaption></figure><p>Traditionally an area which has lagged behind more established construction hot spots, Melbourne's south eastern suburbs have come into their own in recent months, with 17 tower cranes in use over and area bound by Malvern East to Dandenong, and all the bayside suburbs found in between.</p>

<p>Underpinned by larger projects such as Chadstone and Caulfield Heath, the remaining tower cranes are employed on an increasing number of projects in suburbs where apartment living has began to flourish. Oakleigh for example has not been without a tower crane for two years, as one completed high density residential project is replaced by another under construction.</p>

<p>Projects which have recently received tower cranes in the south east include Holmes Hill, Caulfield Heath, Drummond Rise, Gascoigne and Monash University Clayton with all bar the latter residential projects.</p>

<h2>All bar one</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/img_7042.jpg" rel="gallery-all" title="Marco Melbourne looking less precarious than in recent times"><img alt="" class="image-article-full-width-580px" height="410" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/img_7042.jpg?itok=0ckpIrno" title="Marco Melbourne looking less precarious than in recent times" width="580"></a>

<figcaption>Marco Melbourne now looks less precarious than in recent times</figcaption></figure><p>The count is of course minus one unit, owing to the removal of the General Cranes machine which <a href="/news/inside-marco-melbournes-tower-crane-collapse">suffered a malfunction</a> in August.</p>

<p>Over two months later, the remnants of both the tower crane and the crushed Lubeca jump form have been removed, with the exposed concrete lift well of the stalled western tower now set for a new jump form to be applied. Where the replacement tower crane will stand remains to be seen.</p>

<h2>Future prediction</h2>

<p>What can be said for the crane count heading into 2016? Aside from 80 Collins Street and the Rialto Towers Forecourt project, relatively few commercial projects are set for tower cranes over the next six months. The same can be said for health and retail uses as large-scale projects such as Monash Childrens Hospital, Chadstone and Eastland no longer requiring the use of tower cranes.</p>

<p>While residential projects will continue to absorb the majority of units, we predict the overall tower crane count employed throughout Melbourne over the next six months will remain steady or dip slightly.</p>
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silvermb

A new record: Urban.com.au's October 2015 crane count

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<p><strong><img src="/images/2015/10/16/Holdencapital_banner.jpg" alt="" width="593" height="125"></strong></p>
<p>SPONSORED POST</p>
<p><strong style="line-height: 1.3em;">Banks will fund a deal if it fits their parameters</strong></p>
<p><span>We often hear people say, “we can just go to our local bank and get this funded, it ticks all the boxes”.  Really!</span></p>
<p><span>Recently the big banks tightened up their criteria such as pre-sale requirements, sponsor experience/balance sheet strength and other general criteria required to be satisfied by property investors and developers. They are doing this for a number of reasons but the principal driver is a requirement to reduce their total investor loan growth to below the Australian Prudential Regulation Authorities requirement of 10% p.a.. As a result we are now seeing that they are very selective in which projects they will fund.</span></p>
<p><span>Even if a project does “tick all the boxes”, the bank might still not be interested in funding it, with factors such as existing exposure to the sector/local market/client and a preference to improve their risk profile by applying a “best of breed” approach, means that your deal may not measure up even if you are dealing with your long term house bank. </span></p>
<p><span>Knowing what the banks appetite is for various types of project is a key advantage and in some instances we have actually re-packaged a deal and presented it back to the client’s existing bank in a way we KNOW they would like to see it and successfully obtained an approval after it was previously turned down.</span></p>
<p><span>In our experience it is all about presenting the deal in the right way, knowing who in the bank is the decision maker and how far to push the boundaries or not as the case may be.</span></p>
<p><strong style="line-height: 1.3em;">Banks guide valuers in their instructions to engineer an outcome</strong></p>
<p><span>We see no evidence of this in the market place. In fact we always get the bank to give us a list of their preferred valuers and we then encourage our clients to contact these valuers and engage with them to get a feel for the valuer’s understanding of the specific location and product. </span></p>
<p><span>Yes, some valuers might be better to deal with than others, but overall we see no influence from the banks when they instruct the valuers. They simply want to know if the project works and want to use a valuer who they know will give them an honest no nonsense opinion.</span></p>
<p><strong style="line-height: 1.3em;">Getting Pre-Sales will be a quick process </strong></p>
<p><span>This is probably the single most unpredictable component of any Development Project at the moment, particularly in terms of the time required.  Many of our clients see the market appearing to accept similar product and are confident that they too can quickly achieve the required pre-sale hurdle.  However, in practice we see that the process of securing the sales is only half the battle, with the time and resources required to get those sales to conform to the bank’s pre-sale requirements often grossly underestimated. </span></p>
<p><span>Some of the key bank requirements we are seeing at the moment are:</span></p>
<ul>
<li>
<span>Sales need to be unconditional in </span><span>all</span><span> respects</span>
</li>
<li><span>NO more than 10% to 15% foreign sales</span></li>
<li><span>NO more than 10% sales to related parties</span></li>
<li><span>Minimum of 10% deposit strictly applied</span></li>
<li><span>A cap on interstate investor sales</span></li>
<li><span>A requirement for local sales to prove demand and pricing acceptance rather than a reliance on interstate investors.</span></li>
</ul>
<p><strong style="line-height: 1.3em;">All banks are the same </strong></p>
<p><span>This is a very interesting point of view; all banks are certainly not the same.  Even between the 4 major banks the differences are significant, with some of the more interesting ones being:</span></p>
<ul>
<li><span>One major bank has for the present significantly reduced its appetite for Construction Finance and is currently not taking on new to bank projects/developers limiting its lending to its established existing clients.</span></li>
<li><span>Official pre-sale requirements are ranging from 110% to as low as 60% debt cover between the remaining major banks</span></li>
<li><span>Only one of the major banks will still entertain a Loan to Cost Ratio of up to 80%.  If you want to get the others to do this, then you will need to understand what other criteria they will want to see before they will consider this.</span></li>
<li><span>Only two of the majors have any appetite for syndicated deals, where the major sponsor has less that 5% of the equity in the deal. So again, if you are looking at making your equity work efficiently across a number of projects, you will need help to secure the right major bank funding.</span></li>
</ul>
<p><strong style="line-height: 1.3em;">It will cost me more to use a broker</strong></p>
<p><span>At first glance this might be appear to be the case, but our experience is that our clients almost always save money by using our services. </span></p>
<p><span>A well-positioned broker who deals with many different lenders on a daily basis will be able to advise you on which lender has the best appetite for your style of project. </span></p>
<p><span>More importantly, by knowing who to speak to within the bank and where to push and where not to push the their lending parameters, a well informed broker will help you get your project out of the ground sooner and will save the relevant opportunity cost that goes hand in hand with ‘getting started and moving on to the next one’ sooner.</span></p>
<p><span>Just like the best Developers use the best town planners to negotiate the best possible planning outcome on their behalf, so the best Developers also use the best brokers to structure their construction finance to secure the best possible financial outcome.</span></p>
<p><em>This article was written by Dan Holden of HoldenCAPITAL, who are Queensland’s largest project finance firm.</em></p>
<p><em>To discuss your project finance requirement please call (07) 3171 4200 or <a href="https://www.holdencapital.com.au/" target="_blank">click here.</a></em></p>
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Construction finance myths: HoldenCAPITAL

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<p><span>Building activity held up solid for the June quarter, with a healthy proportion of residential commencements flowing through to completions.</span></p>
<p><span>The latest ABS Building Activity data indicated that housing commencements recorded 53,314 starts, which is down 3.2% on the previous quarter, but climbed to 16.9% over the year to post 211,976 commencements.</span></p>
<p><span>Multi-unit residential commencements grew to make up 46.2% of the total starts for the year.</span></p>
<p><span>The completions activity also continued to carry through, reaching 48,941 for the quarter, to record an annualised 189,239 homes completed in seasonal terms.</span></p>
<p><span>Multi-unit residential completions made up 40.8% of the total homes finished over the year.</span></p>
<p><span>“The strong numbers of new homes coming through to completion are going to provide additional homes to improve affordability, which has been needed in regions such as Sydney for some time,” said Property Council of Australia’s executive director residential, Nick Proud.</span></p>
<p><span>“Multi-units completions leaving the pipeline over the coming six months will be stronger than they historically have been, which is expected to provide options for those looking to buy and rent.</span></p>
<p><span>“The commencements have definitely hit a peak, however the completions should sit at these levels for at least another quarter or two as the pipeline of homes gets built”, Mr Proud said.</span></p>
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Housing commencements at 211,976: ABS

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<p>Is Melbourne a boom city? Indeed, but this was also the case during 2005, when the CBD and surrounds well and truly shrugged of the doldrums of the late 1990s with a rash of high-profile projects under construction.</p>

<p>The CBD saw an influx of new commercial space while Southbank capably led by Eureka Tower came into its own for the first time. While dozens of notable residential and commercial builds were underway, important civic projects such as the MCG's Great Northern Stand and the rebirth of Spencer Street Station also aided in giving the Melbourne a renewed vigour.</p>

<p>Here is an overview of what was being built in Melbourne a decade ago.</p>

<h2>Commercial in from the cold</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image146_0.jpg" rel="gallery-all" title="The commercial sector was at its peak during 2005"><img alt="" class="image-article-full-width-580px" height="434" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image146_0.jpg?itok=dUJeffkq" title="The commercial sector was at its peak during 2005" width="580"></a>

<figcaption>The commercial sector was at its peak during 2005</figcaption></figure><p>Following years of inactivity, the commercial sector finally roared back into life with a string of prestigious projects with premium anchor tenants to boot. 2005 delivered 11 Exhibition Street, PwC Australia at 2 Southbank Boulevard and the RACV Centre on Bourke Street.</p>

<p>In the CBD's eastern end Council House 2, Urban Workshop, Southern Cross Tower 1 and 8 Exhibition Street were midway through construction in a surge of commercial activity that has not been matched since. All in all beyond 300,000sqm of commercial space was under construction during 2005, as compared to today where major commercial builds are confined to Collins Quarter in Docklands and PwC Australia's new home at 2 Riverside Quay.</p>

<h2>Residential living on the rise</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image148.jpg" rel="gallery-all" title="Eureka, Freshwater Place, Victoria Point and Yve"><img alt="" class="image-article-full-width-580px" height="435" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image148.jpg?itok=DtcV0c2z" title="Eureka, Freshwater Place, Victoria Point and Yve" width="580"></a>

<figcaption>Eureka, Freshwater Place, Victoria Point and Yve</figcaption></figure><p>The list of residential towers under construction during 2005 was immense; the sheer number of residential projects truly cemented apartment living as a viable alternative to 'The Australian Dream' in Melbourne for the first time. Docklands and Southbank accounted for many residential projects, with the CBD's time in the sun some years away from fruition.</p>

<p>Premium projects that are considered landmarks today which were under construction during 2005 included Eureka Tower, its neighbour Feshwater Place and Yve on St Kilda Road; the latter would later win the Victorian Architecture Medal at the 2006 Royal Institute of Architects awards.</p>

<p>A notable mention also goes to Royal Domain Tower which not only became (and remains) St Kilda Road's tallest addition during 2005, but also remains one of the city's most exclusive apartment projects.</p>

<h2>Tertiary projects</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image144.jpg" rel="gallery-all" title="Brookes Gillsepie House, Monash Caulfield and Swinburne's Hawthorn expansion"><img alt="" class="image-article-full-width-580px" height="385" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image144.jpg?itok=ZYq3Wotw" title="Brookes Gillsepie House, Monash Caulfield and Swinburne's Hawthorn expansion" width="580"></a>

<figcaption>Brookes Gillsepie House, Monash Caulfield and Swinburne's Hawthorn expansion</figcaption></figure><p>Four notable projects were on the go over the course of 2005. Brookes Gillespie House and Melbourne University's Eastern Precinct created hundreds of new student apartments in Carlton, although the quality of architecture for both was more than debatable.</p>

<p>Swinburne created dual buildings, aptly named x_change @ Swinburne which would be precursors to multiple new builds at the Hawthorn campus in the proceeding years to come. Monash University's Caulfield campus also delivered two new builds during 2005, considered the first buildings within the 'Western Precinct' that has seen many proposals since, but little construction thereafter.</p>

<h2>Ancillary builds</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image147.jpg" rel="gallery-all" title="MCG, health projects and Southern Cross Station"><img alt="" class="image-article-full-width-580px" height="433" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image147.jpg?itok=cQxDaT79" title="MCG, health projects and Southern Cross Station" width="580"></a>

<figcaption>MCG, health projects and Southern Cross Station</figcaption></figure><p>Some other memorable projects are approaching their tenth anniversary. Southern Cross Station and the MCG's Northern Stand are the most recognisable; construction of both projects was stretched over a number of years in order to keep both facilities operating during their builds.</p>

<p>Lesser heralded medical projects also features during 2005 with the massive Austin and Mercy Hospital in Heidelberg reaching completion under the guidance of then contractor Baulderstone Hornibrook. Closer to the CBD and Baulderstone Hornibrook also undertook construction of The Alfred Centre, with initial works commencing during 2005.</p>

<p>In years to come the famed Baulderstone Hornibrook name would disappear, yet their legacy remains as do the many builds of 2005, which in many ways are the precursor to the boom times in construction that Melbourne enjoys today.</p>
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Melbourne under construction in 2005

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<p><span>Knight Frank, the global property consultancy headquartered in London, announced its financial results for the year ending 31 March 2015, reporting a record $276m profit and $754m turnover.</span></p>
<p><span>Alistair Elliott, group chairman and senior partner, Knight Frank, said Knight Frank had achieved a 19% increase in profit.</span></p>
<p><span>"Our growing presence in prime locations across London and our enhanced coverage of New York, Miami, LA and Sydney has helped to cement our offering to clients looking for access to the world’s leading employment centres," he said.</span></p>
<p><span>“The specialist property sectors (including hotels, student property, healthcare, residential capital markets and automotive) are becoming a more central part of investors’ portfolios and solid returns over turbulent periods have increased their appeal.</span></p>
<p><span>“In Asia Pacific, where many countries have been affected by China’s slowing economic growth and the imposition of property cooling measures, Knight Frank India and Knight Frank Australia have both performed exceptionally and increased their profiles significantly."</span></p>
<p><span>“In Europe, fortunes are varied," he noted.</span></p>
<p><span>He listed key assignments of global relevance:</span></p>
<p><span>Dublin, Irish Life – We acquired 26,500 sq m retail investment portfolio on behalf of Irish Life for in excess of €150,000,000. The portfolio which produces a rent of €7.4 million, includes properties on Grafton Street, Henry Street and Dawson Street with tenants including McDonald’s, Waterstones, Clarks and Brown Thomas.</span></p>
<p><span>London, Southbank Place – We have been advising on multiple aspects of the strategically important redevelopment of the Shell Centre. The development includes 868 homes, 530,000 sq. ft of office space and 48,000 sq. ft of shops, restaurants and cafés and is expected to be completed by 2019.</span></p>
<p><span>Dubai, Jebel Ali Freezone – Dubai – We valued the World’s largest Freezone, Jebel Ali FreeZone, with a valuation totalling US$4.5bn.</span></p>
<p><span>Singapore, Straits Trading Building - Sold off market to Sun Venture for US$332m. This translates to US$2,086 per sq ft, the highest US$ per sq ft achieved since 2008.</span></p>
<p><span>London, French Embassy – We are currently working with the French Government on the acquisition of a new, fit-for-purpose Embassy building and the disposal of their existing facilities located in Kensington and Knightsbridge.</span></p>
<p><span>UK, The Ardent Portfolio – We are currently marketing the Ardent Portfolio, on behalf of The International Mutual Fund, which comprises a collection of 25 student accommodation properties located across 12 UK university cities. The portfolio provides accommodation for 5,507 students and is being sold off an asking price of offers in excess of £400m.</span></p>
<p><span>Brisbane, Sydney, Australia – Knight Frank sold one of the city’s most prominent and high-profile office and retail towers, 215 Adelaide Street, for AUD224 million on behalf of Pramerica Real Estate Investors to Australian investment management company Challenger Life.</span></p>
<p><span>UK, Meridian Healthcare - Knight Frank’s Healthcare team sold a portfolio consisting of 30 care homes on behalf of Meridian Healthcare Ltd to Formation Capital and HCPI, for in excess of £100million.</span></p>
<p><span>London, 10 Park Drive - Having been involved in the consultancy for the scheme for the past four years, Knight Frank’s residential development team, working alongside Canary Wharf Group, launched 10 Park Drive, the first phase of Canary Wharf’s new residential offering on its 128 acre private estate. Upon completion, the development will comprise 3,200 new homes, shops, restaurants, parks and a school.</span></p>
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