<p>Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.</p>

<p>A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.</p>

<p>Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.</p>

<p>“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.</p>

<p>Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.</p>

<p>“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.</p>

<p>The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.</p>

<p>It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.</p>

<p>The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.</p>

<p>One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.</p>

<p>Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.</p>

<p>The developer is also exploring the potential for additional affordable housing outcomes.</p>

<p>Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.</p>

<p>Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.</p>

<p>Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.</p>

<p>“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”</p>

<p>Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.</p>

<p>Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.</p>

<p>Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.</p>


Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

<p>Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.</p>

<p>The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.</p>

<p>Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" /></p>

<p>“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.</p>

<p>The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”</p>

<p>The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" /></p>

<p>The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.</p>

<p>According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.</p>

<p>“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.</p>

<p>A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.</p>

<p>Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" /></p>

<p>All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.</p>

<p>The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.</p>


Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

<p>Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.</p>

<p>The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.</p>

<p>Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.</p>

<p><img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" /></p>

<p>Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.</p>

<p>The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.</p>

<p>"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.</p>

<p>The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.</p>

<p>The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.</p>

<p><img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" /></p>

<p>Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.</p>

<p>Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.</p>


First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

<p>The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.</p>

<p>The proposal will now proceed to a full council vote on June 2.</p>

<p>The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;</p>

<p>The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;</p>

<p><img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" /></p>

<p>The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;</p>

<p>Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.</p>

<p>“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.</p>

<p>“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.</p>

<p><img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" /></p>

<p>“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.</p>

<p>“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.</p>

<p>“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”</p>

<p><img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" /></p>

<p>Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;</p>

<p>Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.</p>

<p>“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.</p>

<p>“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.</p>

<p>“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”</p>


$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

<p>Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.</p>

<p>John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.</p>

<p>The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.</p>

<p>In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.</p>

<p><img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.</p>

<p>DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.</p>

<p>“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.</p>

<p>The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.</p>

<p>“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.</p>

<p>At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.</p>

<p>The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.</p>


First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

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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firstname-zEygzUaHDN

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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