A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Joel Robinson

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

The long-planned transformation of Brisbane's historic Shafston Estate has taken another major step, with Capella Hotel Group announced as the luxury hospitality partner behind what will become Brisbane's first branded residences.

The project, to be known as Capella Residences Brisbane, is being delivered by Verso Projects at the landmark Kangaroo Point riverfront estate, with completion targeted for 2029.

The announcement follows a series of planning changes to the project over recent years. The site was originally approved in 2023 for a 15-level, 37-apartment development designed by Rothelowman for Burgundy Group before Verso Projects took over the 10,070 sqm riverfront holding and lodged revised plans with Kerry Hill Architects to increase the development to a 25-level tower with 51 apartments.

The latest announcement confirms Capella Hotel Group will bring its branded residential offering to the project, marking just the second Capella Residences development globally after Seoul, and the group's first branded residential project in Australia.

The <a href="https://www.apartments.com.au/new-apartments/23-castlebar-street-kangaroo-point-qld-4169">Castlebar Street development</a> will centre around the restoration of the heritage-listed Shafston House, one of Brisbane's oldest residences, originally constructed in 1851 by Reverend Robert Creyke as a single-storey cottage known as Ravenscott.

<img alt="Capella" data-entity-type="file" data-entity-uuid="2b9f4ce5-638f-4d6b-8082-3ca7e4b75fca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-09%20at%207.20.41%E2%80%AFAM.png?VersionId=f7aeqsW_DzOJI4FymWb3lD8NptSfsP7q" />

Capella said the project aligns with its focus on heritage-led developments, with the Brisbane estate combining the restored historic residence with a new luxury apartment tower and hospitality-inspired resident amenities.

Residents will have access to the Capella Living Room, a concierge-led communal space inspired by the group's luxury hotels, alongside landscaped gardens, six swimming pools, wellness and recreation facilities.

The broader estate will also include two riverfront homes, a six-berth private marina, porte cochère arrival experience, secure basement parking and a new section of public riverwalk along the Brisbane River frontage.

The heritage Postal Depot Building will also be retained and repurposed as a guest house, in line with the revised development plans.

The project represents another evolution for the site, which Kerry Hill Architects previously described as a rare opportunity to restore one of Brisbane's most significant heritage estates while creating a new benchmark for apartment living.

"The Shafston Estate provides a once-in-a-generation opportunity to restore one of Brisbane's finest heritage precincts and to reinstate residential use as a unique site perched on the edge of Kangaroo Point," Kerry Hill Architects said in its Urban Context Report accompanying the planning submission.

"The project will celebrate excellence in sub-tropical residential design, setting a new benchmark for vertical living in Brisbane."

Verso Projects, which now has an $8.5 billion development pipeline spanning more than 6,000 dwellings across apartments, townhouses, retail and commercial projects, said the partnership with Capella would elevate the development beyond a traditional residential project.

"We feel honoured to be restoring Shafston Estate to its former glory, elevating it to new heights of luxury and excellence underpinned by Capella's distinctive service ethos and design philosophy, and making it a standout landmark in Brisbane," Verso Projects CEO Steve Laffey said.

"By partnering with Capella, globally recognised for its refined approach to luxury hospitality and deep respect for cultural and historical context, we will elevate this project beyond a residential offering into a world-class destination."

Capella Hotel Group President Roland Fasel said Brisbane's emergence as a global city made it the right location for the company's Australian residential debut.

"Brisbane is a city on the cusp of something remarkable, and Capella Residences is our commitment to being part of that story," Fasel said.

"The Capella residential experience is more than luxury. It is about a sense of belonging to a place with deep meaning."

Private appointments have now opened for the project, with a display suite expected to open in late 2026 ahead of the planned 2029 completion.

Capella to launch Brisbane's first branded residences at Shafston House, Kangaroo Point

Lewis Land's latest apartment release within its <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan is targeting one of the Gold Coast's fastest-growing buyer groups, with almost a third of apartments at Solis priced below $1 million.

The seven-storey building at Biggera Waters will comprise 91 apartments, including 24 one-bedroom residences starting from $778,000, a price point Lewis Land says is aimed squarely at first home buyers struggling to enter the Gold Coast market.

<img alt="Harbour Shires" data-entity-type="file" data-entity-uuid="e7486e37-22f6-4c92-b212-9b0622070b8f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.34%E2%80%AFAM.png?VersionId=W8MJwJUCf6HkIyl_EVSksnd.QI6MZryY" />

<a href="https://www.apartments.com.au/developers/lewis-land-group">Lewis Land</a> Head of Development Michael Long said the developer deliberately allocated a significant proportion of the project to more affordable apartment types.

"First home buyers have been priced out of many parts of the Gold Coast, and we saw a clear opportunity to address this and play our part in a longer-term housing solution," Long said.

"That's why 24 of the 91 apartments being delivered at Solis have been designed and priced for the city's next generation of homeowners, quality one-bedroom apartments, half of which include an additional multipurpose room to maximise space and flexibility.

"This approach places 30 per cent of apartments in Solis under $1 million, and with close proximity to Harbour Town's future light rail extension connecting residents to the city's major employment and knowledge hubs, it's a win for buyers looking to secure their first property."

<img alt="Sores" data-entity-type="file" data-entity-uuid="550526d3-73ba-4710-9739-c5f4294a30ef" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.29%E2%80%AFAM.png?VersionId=cQQdXHt9wS0UXwZEm5Py5bH_3kAmzyhu" />

Designed by BDA Architecture, Solis will deliver a mix of one, two and three-bedroom apartments, with residences ranging up to 232 sqm. Apartments feature generous balconies and contemporary finishes, while residents will have access to Harbour Shores' lagoon pool, clubhouse, tennis court, gym, yoga studio and sauna.

The focus on first home buyers resonated with purchaser Holly Humphreys, who said she and her boyfriend spent more than a year searching for their first property before shifting their attention from houses to apartments.

"We fell in love with the first house we bid on and got our hopes up, but after repeated knockbacks we learned not to get too attached," Humphreys said.

"We offered at the high end of price guides, but sales kept going even higher. That's where we really struggled and we needed to re-evaluate our budget and our expectations. Standalone houses were off the table, and we pivoted to apartments and townhouses."

Humphreys said it was encouraging to see developers recognising the growing demand from first home buyers.

"There's a growing number of young buyers looking to enter the market earlier because they understand that getting in now can make a real difference as prices continue to rise," she said.

"It's fantastic to see a developer recognise this and then actively take measures to deliver an apartment with us in mind."

Solis is the first development planned within the second stage of the Harbour Shores masterplan, with early works expected to commence in September 2026.

[smartcode_project_cta:default project_id=113271]

Lewis Land targets first home buyers at latest Harbour Shores release, Solis

Luxury apartment developer Abadeen has recorded $19.25 million in apartment sales across two of its Lower North Shore developments in the lead-up to the end of the financial year, headlined by the sale of a $6.75 million penthouse at <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-5-rodborough-avenue-crows-nest-nsw-2065">KOYO in Crows Nest.</a>

The transactions also included the sale of a newly completed three-bedroom apartment at <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences in Cremorne</a> for $6.35 million, with the residence selling shortly after the project's first public inspections following completion.

The sales come as completed, owner-occupier-focused apartments continue to attract strong demand across Sydney's Lower North Shore, particularly from buyers looking for certainty and immediate occupancy.

The penthouse at KOYO spans 491 sqm across a single level and was designed by architect Koichi Takada. The development is one of Abadeen's flagship boutique projects in Crows Nest.

[smartcode_project:default project_id=108800 project_image_fid=370093]

Abadeen Executive Chairman and Founder Justin Brown said buyer activity lifted noticeably in the lead-up to the end of the financial year.

"We saw a clear increase in enquiry levels, inspection numbers and buyer engagement across our completed projects leading into the end of the financial year," Brown said.

"Buyers have become far more decisive over the past six months. The combination of improving confidence, limited supply and the ability to physically inspect completed residences is creating strong competition for premium apartments in the best locations."

Brown says the&nbsp;response to Park Residences following completion has been particularly strong.

"Buyers want certainty and are responding positively to the opportunity to walk through a finished product, inspect the quality firsthand and move in immediately," Brown suggested.

"Projects such as Park Residences and KOYO demonstrate that when the product is exceptional and the location is irreplaceable, buyers are prepared to act quickly."

[smartcode_project:default project_id=114246 project_image_fid=370116]

Abadeen CEO Joe Tack said quality continued to differentiate projects in the current market.

"Today's buyers are incredibly discerning," Tack said.

"They are seeking larger floorplans, premium finishes, walkability, lifestyle amenity and confidence in the developer delivering the project. Well-designed boutique developments continue to outperform because they offer something genuinely difficult to replace.

"The enquiry we are seeing across our completed and recently completed Lower North Shore portfolio is very encouraging, and we expect this momentum to continue into spring."

The sales follow increased enquiry across Abadeen's Lower North Shore portfolio which also includes <a href="https://www.apartments.com.au/buildings/northcote-collective-naremburn-2-northcote-street-naremburn-nsw-2065">Northcote Collective in Naremburn</a> which also completed recently.

KOYO penthouse headlines Abadeen's $19.25 million EOFY sales flurry

The City of Sydney has approved plans for <a href="https://www.apartments.com.au/developers/billbergia">Billbergia Group</a> and Metrics Credit Partners’ $3.5 billion Castlereagh Place project in the heart of the Sydney CBD

The towers will be among the tallest in <a href="https://www.apartments.com.au/developments/sydney-nsw-2000">Sydney</a>'s CBD, with more floors than any other residential tower in the city.&nbsp;

The 6,000 sqm site was acquired by the joint venture partners in 2024. It is the largest amalgamated land parcel in the Sydney CBD and comprises eight individual sites fronting Castlereagh, Pitt and Liverpool Streets.&nbsp;

<a href="https://www.apartments.com.au/new-apartments/castlereagh-place-sydney-324-348-pitt-street-sydney-nsw-2000">Castlereagh Place</a> will transform an underutilised city block into a landmark mixed-use destination, anchored by two 82-storey towers comprising 607 luxury residences above an 8-level podium housing a 209-room luxury hotel. A 1,000 square metre civic park on ground level features a curated mix of food, beverage and retail.

The plans have been refined over the past year to rebalance the residential and hotel offering, and reconfigure the retail footprint to create a stronger, more dynamic dining experience.

A three-level flagship building on the prominent corner of Pitt and Liverpool Streets will be the gateway to the Castlereagh Place lifestyle precinct. Set to become a Sydney icon, the building is capable of housing multiple hospitality venues.

“Castlereagh Place is designed to be the City's next great urban oasis - an energetic mixed-use precinct that pulses with life, day and night,"&nbsp;said Joseph Kinsella, Group Director of Billbergia.

"It will bring the vibrancy of places like Barangaroo and Darling Quarter into a more accessible, central destination at the very heart of Sydney."

Kinsella said the project will build on&nbsp;Sydney’s growing laneway culture with the City’s largest network of new activated lanes - an expanded, next-generation take on precincts like Angel Place, Palings Lane and Ash Street in Wynyard.

[smartcode_project:default project_id=134477 project_image_fid=374401]

Castlereagh Place has been designed by architects <a href="https://www.apartments.com.au/architects/fjc-studio">fjcstudio</a> in collaboration with Trias Studio, Aileen Sage and Polly Harbison Design, joint winners of an international design competition in 2018.&nbsp;

Signature design elements from the original scheme remain unchanged, while the public domain has been significantly enhanced, delivering 60 per cent more open-to-sky space.

Pedestrian access will also be enhanced through new laneways linking Pitt, Liverpool and Castlereagh Streets, drawing people into a new civic park with outdoor seating, landscaping and integrated public art.

With activated laneways supported by strong hospitality offerings, Castlereagh Place is tipped to become a vibrant new dining destination in the heart of Sydney’s CBD.

It marks the largest undertaking to date for the Billbergia and Metrics Credit Partners partnership. Together they are developing other underutilised Sydney sites into mixed-use precincts, including the $2.2 billion Concord Central and the $1.3 billion Chatswood Grand Residences.

Metrics Managing Partner and Group CEO Andrew Lockhart said Castlereagh Place is a landmark project that will redefine Sydney’s skyline.

"As the tallest residential high-rise development, the revitalised site will offer panoramic views across the CBD and surrounds. We are excited to partner with Billbergia to reinvigorate an underutilised site and create a sophisticated and contemporary mixed-use offering situated in the heart of Sydney.”

Total apartments within the towers have increased to 607 dwellings, with a focus on larger floorplans. Aligned to growing market demand, Castlereagh Place now comprises 299 three-plus-bedroom apartments, 198 two-bedroom units and 110 one-bedroom configurations.

[smartcode_project:default project_id=134477 project_image_fid=374402]

Resident amenities will include an exclusive residents club containing a gym, rooftop pool, dining rooms, co-working spaces, library, golf simulator, games room, cinema room, and access to an exclusive concierge service. There will be around 500 basement car spaces below the towers.

The development will also include a state-of-the-art wellness centre, set to feature a bathhouse with magnesium pools, hot/cold plunge pools and premium amenities.

&nbsp;

According to fjcstudio, the towers will feature distinctive yet elegant architectural design reflecting Sydney’s geometry and urban character, with a network of through-site links and intimate public spaces activating the streetscape.

"Castlereagh Place is a city-making project of significant scale and ambition," said Richard Francis-Jones, Design Director at fjcstudio.

"It will create a rich urban complex of public open spaces, landscaped gardens, and vibrant laneways. Defining these new public spaces and the important streetscape of Castlereagh Street is a sequence of fine-grained, diverse retail and hotel architecture designed in collaboration with Aileen Sage, Polly Harbison Design and Trias.

“Rising above the tree-lined, human-scale streetscape are two slender residential towers that will transform the city skyline and look towards the Harbour, Hyde Park, and the Royal Botanic Garden.”

Demolition and early construction works have commenced onsite at Castlereagh Place.

[smartcode_project_cta:default project_id=134477]

Billbergia, Metrics, approved for $3.5 billion Sydney skyscrapers

Off the plan

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Time is of essence! Have you ever enquired for an apartment project on the Internet, only to discover by the time you speak to the real estate agent - or visit the display suite - the project is almost sold out?

Apartment Register ensures our client’s receive first priority pick in new off the plan developments prior to public launch. Having said that, you need to be organised with a clearly defined apartment selection criteria and understanding of your financial capacity, so you will be able to ascertain a development's suitability to make an informed purchase decision.

When searching, many purchasers search for a property first, find an apartment they would like to buy and then go to the bank, only to find out the price is out of their budget. Your bank will be able to give an indication - based on the amount of money saved and your income - of the price point you can realistically afford. Keep in mind your health, lifestyle and spending patterns.

To purchase an off the plan apartment, you are required to pay a 10% cash deposit and sign a contract of sale. The remaining 90% of the purchase price is paid at settlement; that is, on completion of construction and certificate of occupancy.

If you are looking at buying a $450,000 apartment, you would need to have $45,000 (for the 10% deposit) and pay the remaining 90% or $405,000 at settlement, which is typically 18 months to two years from commencing construction.

Once you have a budget, you can determine your apartment selection criteria. Everyone’s position is different, it is normal to turn to family and friends for advice; however if they don’t own a property they may not be aware of all that is involved in purchasing a new off the plan apartment, nor they are in your current lifestyle and income bracket or have the amount of savings you do.

Remember, it will be one of your largest lifetime decisions, it needs to work for you, not your friends and family.

Your suburb location and size of the apartment is the main price point driver. Keep in mind your first choice suburb to live in may not be in your budget, however the surrounding area suburbs can be a good alternative.

"Location Leap Frog" is the term we use for wanting to live in a location that is tightly held; the zoning or council restrictions may limit building apartments due to height constraints, and therefore may not allow for apartment development which offers limited opportunity to buy in these areas.

At Apartment Register, we have many enquiries for new off the plan apartments in Albert Park and Middle Park, both of which are very tightly held and low-rise suburbs, so you would need to Leap Frog to suburbs within the area, such as South Melbourne or Fishermans Bend.

Do you require a 1, 2 or 3 bedroom apartment? Internal sizes of apartments vary and are calculated per square metre (per sqm) basis, the terrace or balcony is known as external space and is also measured in square metres. The price of an apartment is reflected on the total internal size.

The size guide below is general and will vary on how many bathrooms or study you require:

<ul>
<li>1 bedroom = 42sqm to 50sqm</li>
	<li>2 bedroom = 56sqm to 72sqm</li>
	<li>3 bedroom = 75sqm to 100sqm+</li>
</ul>
In keeping with the mathematics theme, <a href="/guides">our next article</a> in the Apartment Register summer reading series will touch on rental yield and depreciation.

Feel free to contact My Real Estate Mate through Apartment Register on Apartments.com.au and we will be in contact with you straight away.

Cameron Clarke is licensed real estate agent and managing director of My Real Estate Mate and Apartment Register; a joint venture partner of Alamar AV Communications Pty Ltd, publisher of Apartments.com.au. Each Saturday over summer Cameron will provide provide commentary and tips on all things apartments.

Cameron's published commentary is not designed to be taken as financial advice and should you wish to register with Apartment Register, Apartments.com.au strongly recommends registrants consider their financial position and do their own research before entering into contracts for sale.
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cameron

My Real Estate Mate summer reading series: Buying off the plan - the first move

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<a href="/new-apartments">New off the plan apartments</a> are increasingly becoming the first choice for <a href="/guides/how-to-buy-a-house-in-2021-a-guide-for-first-time-home-buyers">first home buyers</a>, owner occupier and <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">investors</a>. Buying off the plan property is very different to established property offering apartments to purchasers prior to construction commencing.

Since launching the Apartment Register platform, My Real Estate Mate clients regularly ask us ‘how do I buy an apartment off the plan?’ So we thought it would be a good idea to guide you through the process, give you some peace of mind and save you some time and effort.

Let’s kick off with why the way we live has evolved from the family home on a quarter acre block to a higher density level of living, namely apartment developments. The explanation revolves around three key elements:

<ol>
<li>Affordability</li>
	<li>Embrace vertical living lifestyle</li>
	<li>Household dwelling numbers</li>
</ol>
<h2>Affordability</h2>

The accumulation of capital - while an advantage for those who already own a property - means the affordability of an off the plan apartment comes down to you having enough money saved to pay a 10% deposit. Increasingly an individual's earning capacity has not kept up with mortgage repayments, so you have to spend more on a property than you would have had to say 10 years ago to get a comparable product.

<h2>Embrace vertical living lifestyle</h2>

We are increasingly time poor and as such want a ‘lock and leave lifestyle’ that is, a lifestyle requiring minimal household maintenance. Why mow the lawn when you can walk to and play in the local park? Increasing work commute time means we are spending more time in traffic or on the train than doing the things we enjoy. New York City, London and Hong Kong are apartment living cities. That is, living in a house is a rarity, we are simply heading in the same direction.

<h2>Household dwelling numbers</h2>

Population dynamics are changing. The number of dwellings has had to increase to cater for the increasing number of single households. Divorce, downsizing and aged care rates all of which are increasing mean more dwellings are required to accommodate everyone.

Let’s live skyward, yes indeed now remember that everyone’s selection criteria are different. This is why we say to our Apartment Register clients that while family and friends are everyone’s first port of call for advice in actual fact everyone’s circumstances are different therefore everyone’s selection criteria are different. Keep in mind what type of buyer you are and your considerations.

<h2>First home buyer</h2>

Are you buying your first property? The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation.

Under the scheme, a one-off grant is payable to first home owners that satisfy all eligibility criteria. The Grant amounts vary from state to state and can change, so ensure you have the most up to date amount that will assist your purchase and the criteria to ensure you are abiding by the regulations. At time of writing, the current FHOG for Victoria is $10,000 on new off the plan property up to $750,000 in value. You must live in the property for 12 months continuously within 12 months of settlement.

<h2>Owner-occupier</h2>

An emotional buying decision reflecting suburb, size and type of the product to house the family but also financial relating to purchase price and affordability. School zones are increasingly becoming a driver for owner occupiers with areas such as Balwyn: Victoria's tightly held suburb with consistent capital growth due to Balwyn High School being one of the top public schools in the state. The advantage of an apartment within that school zone is that the chances are it will be cheaper than a house.

<h2>Investor</h2>

Investors will be driven by the mathematics of the purchase being either rental yield, depreciation or capital accumulation. My Real Estate Mate reviews all new off the plan apartment calculations with our clients prior to purchase, ensuring revenue and expenses such as body corporate and insurance are analysed.

<h2>Downsizing or retirement</h2>

A lifetime of accumulation may require to have ample cupboard space for storage or be close to the lift for ease of carrying shopping bags or golf clubs! Downsizing and aged care buyers often forget how expensive it is to sell their current residence and the cost to enter a new residence. Stamp duty saving minuses this trade in/trade out cost and is one of the advantages of off the plan apartments.

<h2>International buyer (FIRB)</h2>

International purchaser: if you do not have Australian residency you will need to apply to purchase the apartment from the Foreign Investment Review Board (FIRB).

<a href="/guides">In our next article</a>, we address the steps in the process towards buying a new off the plan apartment with Apartment Register. If you have any questions, you can contact My Real Estate Mate through Apartment Register on Apartments.com.au and we will be in contact straight away.

Cameron Clarke is licensed real estate agent and managing director of My Real Estate Mate and Apartment Register; a joint venture partner of Alamar AV Communications Pty Ltd, publisher of Apartments.com.au. Each Saturday over summer Cameron will provide provide commentary and tips on all things apartments.

Cameron's published commentary is not designed to be taken as financial advice and should you wish to register with Apartment Register, Apartments.com.au strongly recommends registrants consider their financial position and do their own research before entering into contracts for sale.

Lead image courtesy Yardi.
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My Real Estate Mate summer reading series: Purchasing off the plan apartments

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I was lucky to recently spend an amazing weekend riding horses in the NSW Snowy Mountains National Park.
It was one of those bucket list trips and I went with an old school friend. We'd gone to pony club together and grown up as horse crazy girls. We'd spend most of our teenage years riding and looking after our horses (which kept us out of trouble!).
Whilst sitting around the camp fire at night with a group of other women and staff we'd just met, I was discussing property investing with one of the ladies – can't help myself!
She was a pretty amazing single lady with her sights set on the future. She'd been clever enough to buy a few investment properties in-between serving our country in the army.  We were discussing her recent purchase of an off the plan apartment.
She shared with me the numbers on her deal and I was a bit surprised. I have good experience with buying off the plan but it was over ten years ago now that I used this strategy. Back then, the property developer offered a good discount to purchasers and this helped create some equity. If the market was also moving upwards, then a nice chunk of money could be made by settlement time. I would settle an apartment then draw out the equity to use as a deposit to settle the next one.
But things have changed. There seems to be more risk as there isn't the same discounts being applied. So you buy in at today's market price. If, of course, it's a hot market, as Sydney is at the moment, that price could end up more than what the apartment may be worth in a year or two once completed.
I explained what I did to the lady. Property Bloom manages small developments for our clients. A dual occupancy development can create a big chunk of money within twelve months and you end up with two properties.  I explained that the big difference between buying off the plan and developing yourself, is that you are creating the equity through the development process, not hoping for capital growth whilst your apartment is being constructed.
Would you rather control of the equity creation by cutting some keen deals on the land and construction or rely on a stranger to build your investment and hope for the market to rise?
I did the latter six times and was lucky four out of the six times. The other two deals were borderline. If I had my time again, I would not have completed on the two ordinary investments.  But as they say, time heals all wounds and because I held onto these investments (in lieu of selling at a loss) they've turned out well.
My big lesson from buying off the plan?  It is far more lucrative to be the developer than the investor.
<a href="https://www.propertybloom.com.au">www.propertybloom.com.au</a>
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jochivers-wq5Bp59R5a

Chewing the fat on off the plan investments

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Buying off the plan, or buying “new”, can be incredibly exciting for home buyers of any level of experience. For first time buyers, it can also be daunting.
While there are many positives associated with buying off the plan, and it can be useful to get in early and lock in a price prior to the property being purchased, there are a number of risks to be aware of.
Firstly, if you’re interested in purchasing off the plan you can read our How To series about going through the buying process.
Here are the risks that you need to have on your radar.
You may not be satisfied with the end product
You can look at as many renders, artists impressions, show homes and samples as you like, but nothing quite compares to seeing the actual property in the flesh. Similarly, unless your contract is very specific and you get it looked over, you may see variance in the quality or brands of your finishes, fixtures and appliances. Make sure these elements are specifically stated in the contract.
The market may fall while the property is being built
If the market drops during the development’s construction phase, you may face yourself needing to foot a bill that’s more than the bank will lend to you if the valuation comes in lower at settlement. This can pose significant difficulties to those without substantial funds behind them, and can push your finances backwards. On the other hand, the market could increase over this time. You will want to make sure that any market increases haven’t been factored in to the price already – don’t be paying tomorrow’s prices unless it is already tomorrow.
Rental forecasts and guarantees may be off the mark
Just as the sales market can drop, the rental market can fluctuate as well. This may leave your rental yield flagging, or your property vacant, if you haven’t considered where the rental demand is heading. Similarly, those guarantees provided by unscrupulous developers can often come unstuck. Perhaps they require you to stick with their selected property management company or jump through another set of hoops. Know what terms are behind this guarantee ahead of time.
The area becomes oversupplied with other off the plan developments
Developments have a habit of cropping up together. If you’re buying into an area with lots of developer interest and property demand, you’ll want to make sure that by completion the area won’t be oversupplied or facing a potential future oversupply.
The developer may go bust or there may be delays 
Make sure you do your research on the developer and other professionals involved in creating your property prior to purchasing. While some delays are unavoidable, and you should prepare for them, such as weather-related delays, others can be caused by poor planning from developers. If it spans out by a significant period of time, you could face your funds being tied up elsewhere, costing you time and other opportunities. If it’s a home, then you may need to seek out other accommodation in the event of a delay. Some developers can even go bankrupt, leaving you in the lurch.
Rates increasing before you can fix
In the current low interest rate environment it’s unsurprising that many are interested in fixing their loans to take advantage of the low repayments required. However, if you’re buying off the plan now then you won’t be taking the loan out until further down the track – this means that you’ll be facing the interest rates then. With all the predictions at the moment, it’s likely <a href="/expert-insights/finance/more-than-one-interest-rate-rise-on-the-cards-for-2015-anz">the rate may be higher by the end of next year</a>.
However, with the right research and careful decision making, off the plan properties can present good buying for some investors and home buyers.
Here are<a href="/expert-insights/five-tips-for-protecting-yourself-when-buying-an-off-the-plan-property"> five tips to protect yourself when purchasing off the plan</a>.  
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Six risks that come with buying off the plan

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The NSW government has extended the first home owner grant in its June 17 budget.
First-time buyers who purchase new properties - houses or apartments - worth up to $750,000 will now qualify for the $15,000 payment from July 1. 
The previous threshold had been $650,000 since the June 2012 budget. 
Sydney's runaway median dwelling price has moved from $541,000 as at June 2012 to sit currently at $678,500, according to RP Data, so the catchup decision barely keeps pace with actual price movements.
However Housing Industry Association chief economist Harley Dale said the median price for new homes in NSW was around $650,000 which means most first home buyers will be able to get the full benefit. 
The threshold decision also brings NSW into line with several other states and territories.
Treasurer Andrew Constance initially announced the extended eligibility criteria for the first home owner grant by $100,000 with Premier Mike Baird in a visit to Sydney's north west.
“This will make the dream for young families of owning their own home that bit easier,” Andrew Constance said.
The government claims 100,000 new homes have been built since the March 2011 election. But NSW first home buyers still remain at well below the long term average in their buying habits, in part due to the desire to shift their buying to new homes, and also given affordability issues.
Last year around 7600 home owners secured the $15,000 grant, compared with 36,000 in 2011, after the scheme was restricted to new homes. 
<a href="https://www.osr.nsw.gov.au/grants/fhog" target="_blank">The First Home Owner Grant (New Homes) scheme</a> was established in 2012 to assist eligible first home owners to purchase a new home or build their home by offering a $15,000 grant.
The take-up of the grant scheme has been greater in recent times - some 45 per cent higher in the four months to April compared with the same time in 2013.
The scheme applies to new homes only, houses or apartments, and is scheduled to be reduced to $10,000 on 1 January 2016.
In Victoria first home buyers qualify for the $10,000 First Home Bonus, but the value of the property must not exceed $750,000. Eligible recipients will also qualify for a reduction of up to 40% on stamp duty payable on first homes purchased below $600,000. 
Queensland's Great Start Grant valued at $15,000 is paid to first home buyers who are buying or building a new home valued up to $750,000.
The ACT offers first home buyers $12,500 when purchasing new, off the plan with the grant is capped at $750,000 purchases.
<a href="/expert-insights/buying/the-national-guide-to-first-home-buyer-grants">Last month Property Observer published a national guide for first home buyers.</a>
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NSW first home buyers can buy up to $750,000 under extended FHOG

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Calling the increase in strata developments and land sales in Western Australia a “boom”, Consumer Protection has provided some clear guidelines for prospective off the plan buyers.
Revealing a booklet to buying off the plan on their website, acting commissioner for Consumer Protection, Gary Newcombe, said that the biggest risk is if the development fails to go ahead as planned.
“For this reason, it is absolutely essential that buyers ensure that any deposit they pay up front is held in a designated trust account by an independent party such as a real estate agent until the property is ready to settle,” Newcombe said.
“When buying off the plan it is also important to know the status of any planning approvals, the likely timelines for these being settled and what happens if approvals are not granted within acceptable periods.”
He noted that the contracts for developments are usually created by the developer and their agents, and so there’s a risk that the developer’s interests are protected but that consumers’ are not to the same extent.
He also said that buyers should consider whether their own circumstances may change, and then affect their ability to fulfil their contractual requirements.
 “There might be changes in the buyer’s financial situation, interest rates may rise and property values may fall – all factors that will affect their ability to get finance when settlement time comes many months or even years down the track,” he said.
“The risk of a buyer defaulting could mean their deposit is lost and the developer could claim other damages and losses.”
He warned that their guidelines should not replace legal advice.
The top seven questions from the guide:
<ol>
<li> What are the pros and cons of buying off-the-plan? 
</li>
<li> Who should hold the deposit and to whom will interest, if any, be paid? 
</li>
<li> What happens if the buyer can’t go through with the deal, or the development doesn’t proceed as planned? 
</li>
<li> Can the developer increase the price of the land or property after the contract with an agreed price is signed? 
</li>
<li> Can the quality of the property be guaranteed and what happens if the builder changes the plans? 
</li>
<li> What’s at risk if the buyer can’t get finance by the settlement date? 
</li>
<li> Under what circumstances can a buyer pull out of the contract without any penalty?</li>
</ol>
Source: Consumer Protection
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Seven questions every off the plan buyer should be asking

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GUEST OBSERVATION
When I speak to someone looking to buy an off the plan property, one of my first questions is usually “investor or first-time buyer?”
Recently it was claimed that there is currently a ‘property war’ between first time home buyers and investors, each one vying for in-demand properties throughout Australia. If there is a property war, then the investors are winning. They have more experience, better credit, and in most cases, the confidence to act quickly.
Last year saw a lot of first time buyers forced out of the market due to high property prices and excessive demand. The proportion of first home buyers of all owner-occupied loans financed in January increased .5% from December. Although this is a good development for buyers and the market, this stat is still five times less than investment loans financed. But for those intimidated by the investor presence, first time buyers can easily move into top quality properties.
One of the priority issues for first time buyers is location. Most buyers are looking for something close to the city and close to work, which is where the investors begin driving competition. Smart investors will recognise these areas as the key hotspots and are also looking in these areas. But there are brand new developments in Surry Hills, Rosebery and Alexandria that pose fantastic opportunities for those looking to take a step into the market.
Most inexperienced buyers don’t realise how cost effective off the plan purchases are. Many assume that because it is a new development it is going to cost them more. But seeing as many off the plan purchases occur months ahead of moving in, they afford you the time to save a larger deposit and allow you to qualify for the First Home Owners Grant if applicable.
Off the plan purchases represent some of the best opportunities for first time buyers to not only move out of home, but to move into the market as investors. Now more than ever, buyers are taking the opportunity to buy a new apartment and rent it out to pay off their mortgage faster. With the large number of young professionals looking for homes and willing to pay higher prices for better locations, the potential for return off a purchase can be significant.  
Sam Elbanna is managing director of <a href="https://www.cpmrealty.com.au/" target="_blank">CPM Realty</a>.
 
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jake-cSmGT7VXVf

Not according to ‘the plan’: First home buyers missing out on off the plan opportunities

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In today’s market what makes the great foundations for an exceptional residential development? 
While there are an array of possible ways to benchmark and answer this question that may well satisfy planners, developers, marketers and financiers, we are also faced with another question, "what makes a great project for the buyers".
Buyers face lots of choices and while they can easily access mountains of research and commentary, I still think that when we take a project to market we still need to answer this question. Easily. Even more so when we are talking about selling off the plan, where a focus on the elements of a project with great foundations, is a sound way to approach the market.  
Market conditions are always changing; today’s projects that sell-out in just hours, days or a few weeks, might not do so under tomorrow’s market circumstances. 
There are some key aspects to regard as our key project fundamentals, many of which are interconnected. 
Always from both the developers and buyers viewpoint are: Infill locations, the use of existing infrastructure, environmental credentials and sustainability, access to open space, design, equally the overall and apartment design, communications, the appeal of mixed use developments, the liveability of the development and finally sales appeal.
While I am not suggesting this is an exhaustive list, I do think that by looking at each element, we will then start to understand how they help form the foundation of great projects and why buyers frequently use such key attributes to inform their purchase.
Infill locations attract both positive and negative feedback, but these are locations are essential to helping plan any major city and they are the mainstay of most medium density development and (once the dust settles) are generally seen as a more desirable way to plan and deliver new projects. They not only create new homes but they usually are very good at connecting new neighbourhoods and so they are very appealing to buyers.
The use of existing infrastructure is naturally linked with the appetite for infill locations and local infrastructure will include rail links, schools, shops and parks, in fact any easy to access facilities. Buyers are quick to identify the importance of these facilities and it has to be acknowledged that in some locations new developments add user pressure, which is an area that both government and developers always need to plan and be mindful of. 
However the value gained from the use of existing infrastructure and where necessary improving facilities is easily illustrated because the costs can be massive. Some recent figures I saw from the USA make the point. There a modest extension to street curbing was quoted at US$78,000, a new set of traffic lights US$280,000 while a mile of new subway would cost US$1 billion, so the use of existing facilities via infill locations looks like an obvious choice.
Environmental credentials is a major topic, in some cases it’s a marketing must have and is made up of many varied parts from the familiar, like the use of solar and water recycling to the less common such as on-site energy generation. We also need to include the provision of new green space and access to open space, including passive open space like golf courses. However again here we can have a clash between the needs of already established communities with the desires of new residents, but for the developer this can be a great foundation element.
Design is another constantly evolving foundation element; it’s very topical and one of the items that is close to the heart of any buyer. Design covers a wide strategy from the masterplan of a development and its impact on the local environment into areas like apartment size, clever features, cross ventilation, variety and innovation, attention to detail; down to such everyday items like the number and size of parking bays and storage.
Communications is both a simple and complex area. Every buyer today expects to open the door of their new apartment, walk in, switch on their PC, laptop, tablet or whatever device they have and be instantly connect to the world.
Mixed use developments on the development star ratings offer some challenges, usually at the planning level, but they also offer great opportunity and generally they help create a more connected local community because they bring new variety that can be used by everyone, not just the new residents. In creating a dynamic mixed-use development variety is important because it can be exciting and a wonderful ongoing benefit to the entire community.
Liveability really brings together all of the aspects already outlined. There is no single pointer, it’s a combination of cultural, economic and environmental issues, and it also includes diversity and population demographics as well as civic and planning values. But it might also be seen as a sense of place, in reality a place where people want to live.
Sales appeal is the final point but from a marketing perspective, it’s the litmus test. Any project needs to be a commercial winner and the aim is to inform the marketing message, but to also help buyers in their own minds answer what really makes a great development.
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pchittenden-eLqUUC8TWW

The foundations of a great residential project

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Riverside Tower will be a $250 million precinct development on Parramatta’s riverfront, and the largest multi-function event centre outside of Sydney’s CBD, provided the development application goes through as planned. It will also likely take its place as one of the tallest towers in Parramatta.
It appears the new tower, to see residential apartments across 37 storeys, may also take the spot of 'tallest' residential tower in Parramatta - a title currently held by the at-present under-construction V by Crown. Suggestions that V by Crown would soon lose the title had been <a href="/expert-insights/buying/slab-to-be-set-on-highest-residential-tower-in-parramatta-v-by-crown-today">heard by Property Observer for some time</a>. Meriton's as-yet unbuilt <a href="https://www.meriton.com.au/properties/altitude-apartments" target="_blank">Altitude West</a>, "coming soon" at 330 Church Street, at a suggested 53 levels (far surpassing Altitude East at 30 storeys) is also in the running for the tallest title. With completion for Altitude suggested for 2016, and entire project completion for Riverside Tower for 2017, it'll be a race as to who holds the title and shapes Parramatta's skyline first.
The DA, submitted to Parramatta City Council last week, has requested approval for 413 residential apartments, entertainment facilities, cafes, restaurants and a visitor/exhibition facility ‘Discovery Centre’.
The project, set to be a public/private partnership between PCC, LIDIS and Dockside Group, will complement a number of significant buildings in the Parramatta area, which has been going from strength-to-strength.
The riverfront location will see a number of exciting residential features, including 37 of the 41 storeys containing apartments with river views, that are said to never be built out. The homes include studios to three-bedroom residences, sky-homes and penthouses, with first sales anticipated this year.
<img src="/images/2014/04/10/parramatta-april-10-two.jpg" alt="">
Project completion is expected for 2017, with the apartments boasting access to a lap pool, gym, spa, sauna facilities, enclosed sun terrace, terraced gardens, BBQ facilities and lounge spaces.
“Riverside Tower will play a significant role in supporting Council’s commitment to growth and the evolution of Parramatta as a thriving centre for business, leisure and living,” explains official material of the development.
It is located between Lennox Bridge at Church Street to the East and Bernie Banton Bridge (Marsden Street) and is expected to bring 720 direct and 1,400 indirect jobs, with the Conference Centre expected to add $20 million a year to the local economy.
Discovery Centre is registered with the Green Building Council of Australia.
The City of Parramatta appears to be very much behind the proposal, with Lord Mayor of Parramatta John Chedid explaining that the proposal involves major upgrades to more than 4,400 square metres of public domain and foreshore land.
“As Parramatta continues to expand, access to the river and surrounding foreshore will be critical to the city’s recreational and cultural future. We are pleased to be working with LIDIS and Dockside Group who share our vision of refocusing Parramatta’s CBD towards the river,” said Chedid.
“The centrepiece of the Riverside Tower is the Discovery Centre which will replace the CBD’s existing Visitor and Heritage Centre and deliver a spectacular entertainment and dining experience that befits the geographical heart of Sydney.”
The Council will own and manage the Discovery Centre.
<ul>
<li>Construction partner: Hutchinson Builders 
</li>
<li>Lead architect, landscape architect, urban designer and interior designer: Johnson Pilton Walker 
</li>
<li>Project developer: LIDIS 
</li>
<li>Venue managers: Dockside Group</li>
</ul>
It appears it will be a busy time for Parramatta, with <a href="/expert-insights/buying/v-by-crown-development-reaches-150-million-in-sales">tallest residential offering, 29-storey V by Crown, seeing a significant number of sales as it undergoes construction</a>.
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Development application submitted for one of Parramatta's tallest towers

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Brought to you by
<img src="/images/marketing/frasersProp_black_rgb.jpg" height="50px">
Planning how to rent out an off the plan apartment is similar, if not the same, to other forms of property investment strategy, however some developers may offer a rental guarantee on the new purchase.
Developers generally offer a rental guarantee for the first year or two, however many property professionals warn against buying into a development that offers a rental guarantee.
iProperty Plan director Mark Armstrong says by accepting a guaranteed rent level, investors are insulated from market forces.
“As newer properties come on to the market and tenants have a wider choice of places to live, the market rent for a property could fall,” says Armstrong.
Market analyst <a href="/guides">Catherine Cashmore</a> says the rental guarantee is always factored into the sale price of the apartment.
Cashmore says rental guarantees can be between 5% to 7%. If an investment has a gross return of 6% and the developer guarantees $300 a week rent, the purchase price would be $260,000.
But if the market rent is in fact $250 a week, the property is really worth $218,000, resulting in investors paying 19.2% over the market value.
“Once the guarantee expires, the unit’s yield will revert back to market forces,” says Cashmore.
Armstrong says once the guarantee expires, investors will need to have sufficient cashflow to hold the property during periods when the property is not tenanted.
Property 1 real estate agent Garth Rothwell says rental guarantees are good for overcoming fear of loss due to a vacancy period but in reality, all rents are guaranteed.
“I guarantee there will be people willing to rent a unit, it just comes down to how much rent they are willing to pay.
“Guarantees that are offered by the developer and are above market value are bound to fail, as proven in the past, as they are unsustainable over the medium to long term.
“Rent guarantees based on market value for a period of one to three years can be beneficial for investors to overcome the fear factor and help the investor with cash flow in the initial years of the purchase,” says Rothwell.
“Ultimately it comes down to how the rent guarantee is funded.”
Off the plan apartments can be advertised for rent prior to settlement but Rothwell says the investor will require the developer’s permission to advertise early, as the developer will have to authorise access to conduct inspections.
“If the unit is leased prior to settlement, the developer is entitled to the rent collected prior to the settlement date.
“If a guarantee is in place, the developer will already have this process in place,” says Rothwell.
For investors wanting to rent out their new apartment, Rothwell advises to price the unit at market value, not emotional value.
“Investors should be prepared to trade off $10 to $15 per week in rent to get a better tenant sooner, or alternatively a tenant with a small pet may pay more.
“The investor needs to identify the type of tenant they wish to attract, familiarise themselves with relevant facts regarding pets, body corporate rules and on site management,” says Rothwell.
Rothwell advises that a pre-purchase/settlement inspection is organised from a licensed building inspector and that a detailed initial inspection report is completed.
“Complete all guarantees for stoves, ovens, dishwashers and air conditioners and ensure a landlord’s insurance policy is in place to cover loss of rent due to malicious damage and a basic contents policy to cover any dispute about building or contents,” says Rothwell.
As with any property investment, research is the key to ensure the numbers add up and that all the correct measures are taken to safeguard investors and their property.
{rsform 49}
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