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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A Brisbane developer has announced a settlement package before the end of the financial year on June 30 for its off-the-plan apartments in the inner city suburb of Woolloongabba.
Construction is about to start on the <a href="https://projectpropertysales.com.au/sabre-apartments/" target="_blank">Sabre project on Sword Street</a> which will comprise 25 apartments.
There will be one and two-bedroom luxury apartments.
The settlement package available on contracts offers two choices from the following: 
<ul>
<li>one year free body corporate</li>
<li>one year rental guarantee</li>
<li>blinds and security screen package</li>
<li>Fisher and Paykel white goods package (fridge, washing machine and dryer)</li>
</ul>
The developer says that 25 percent of the project has been sold out before construction. 
Two bedroom apartments are available from $440,000.
The apartments have open plan living areas with kitchens and private balcony. 
The location is near retail and dining precincts being developed within the Woolloongabba area.
 
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jonathanchancellor-7SQnKwU6yx

Brisbane developer offers incentives for off-the-plan apartments in Woolloongabba 

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Off-the-plan property listing site iBuyNew has announced a new chief executive to helm the firm as it looks to expand its sales volumes.
Founder Mark Mendel is making way for a new CEO, Alex Caraco, who has more than 35 years of sales leadership experience in the real estate sector and will be handling the day-to-day affairs of iBuyNew.
Caraco has deep connections in China, where iBuyNew recently set up a satellite office, adding to its three offices in Sydney, Melbourne and Brisbane. 
Mendel said he would be taking on the role of head of strategy as the company looks to ramp up its presence.
“While I have worked tirelessly for almost a decade on different iterations of what you now know as iBuyNew, it is now time to hand over the CEO position to someone that has over 35 years of sales leadership and experience that will not only build a larger salesforce within our business but also deliver a better result for those that we work with,” Mendel wrote in a letter released to the media.
 
 
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Founder Mark Mendel makes way for new CEO at iBuyNew 

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The rate of housing market turnover, or transactions, is on an “unusual decline” with a sharp rise in off-the-plan sales of apartments — which are difficult to measure in a timely manner — likely to be a factor, according to the central bank.
Other potential reasons could be lower rates of home ownership, particularly for younger households, and migration trends. 
A fall in housing market transactions directly affects the economy as it hurts tax revenue - which made up about 40 per cent of total state tax revenue in 2014/15, besides impacting the creation of more jobs and related occupations such as real estate agents, lawyers and the finance industry, the RBA notes.
The RBA’s latest bulletin says the decline in the national housing turnover rate in recent years has come despite “the strength in a number of housing market indicators such as national housing price growth, which has historically been positively correlated with the turnover rate”. 
It says part of the recent weakness could from measurement issues arising from the increased share of apartments in new housing construction. 
Approvals for higher density housing have increased sharply since 2009 and now account for around half of all approvals. 
As a majority of new apartments are purchased off-the-plan, well before construction has commenced, they have settlement lags of around two or three years. With limited data about these sales until settlement, the RBA bulletin suggests that reported housing turnover is likely to be understated.
More approvals could only increase this understatement, according to the central bank.
Apartment transactions rose sharply through the second half of 2014 and early 2015, before declining to around 2 per cent of the housing stock. 
“The aggregate housing turnover rate would have also increased through late 2014 and early 2015 under these assumptions, before declining to be below its decade average rate,” says the bulletin.
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prateek24-ezbwHMbNAk

Off-the-plan settlement lags play a part in understanding the housing turnover maze: RBA

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The Treasurer, Scott Morrison, has made changes under the foreign investment framework to allow foreign buyers to purchase an off-the-plan dwelling when another foreign buyer has failed to reach settlement.
The Turnbull Government advised last November it was set to implement changes under the foreign investment framework to allow foreign buyers to purchase an off-the-plan dwelling when another foreign buyer has failed to reach settlement.
"This change addresses industry concerns, and means property developers won’t be left in the lurch when a foreign buyer pulls out on an off-the-plan purchase," the Federal Treasurer Scott Morrison advised.
"This action will ensure that markets will not be impacted negatively by an increased amount of off-the-plan sales, particularly from foreign purchasers, not being completed."
He said it was common sense that an apartment or house that has just been built, or is still under construction and for which the title has never changed hands, is not considered an established dwelling.
In the event of a failure to complete settlement, the dwelling should revert to its previous status – that is, a new dwelling.
For individual applications made by potential purchasers this policy change will be implemented immediately.
Foreign persons who apply to purchase a dwelling that is considered established, only due to a failed settlement, will be assessed as if it was a new dwelling.
These issues also affect the current New Dwelling Exemption Certificates, which act as a pre-approval mechanism for foreign persons purchasing new apartments in a specific development.
A regulation change will be made at the next opportunity to enable developers to acquire a certificate that covers foreign persons purchasing a dwelling that is considered established only due to a failed settlement.
The Commissioner of Taxation has advised no compliance action will be pursued against persons who, if not for a failed settlement preceding their purchase, would otherwise have been covered by an existing New Dwelling Exemption Certificate until the regulations are changed.
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jchancellor-FAypfDUnLy

Off the plan FIRB rule change by Scott Morrison

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<div>
GUEST OBSERVER
Lenders failing to provide off the plan apartment purchasers with a funding pre-approval which lasts until settlement could prove costly for thousands of buyers in Victoria.
Victorians who bought off the plan apartments scheduled to be completed this year face losing their deposits due to new design standards requiring more space.
The big four banks have made a policy in line with the new standards by refusing to lend for one-bedroom apartments smaller than 50 sqm.
The situation is unfair as banks had applied different standards for the developers of the apartment projects.
If banks are prepared to fund a development for construction then they should take the same stance on providing finance when it comes to the buyers of those off-the-plan apartments.
Many Melbourne apartment projects due to be completed in 2017 were designed in 2014 or prior, before the discussions about the new designguidelines had even been made public.
The banks should be offering to fund the buyers of those apartments under the same policy that exists when the construction started.
Buyers of off-the-plan apartments should be able to go to the bank that funds the construction and take out a pre-approval that will last them until settlement.
This reduces a part of the risk for the buyer as they don’t have finance risk. It also reduces problems for the developer as they don’t have settlement risk and overall it’s a win/win situation for the bank.
</div>
<div>
Mark Mendel, is founder and chief executive officer of iBuyNew.com.au and can be contacted <a href="https://www.ibuynew.com.au/">here.</a>
</div>
<div> </div>
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Lender design stance just hurts buyers: iBuyNew's Mark Mendel

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<img src="https://counter.theconversation.edu.au/content/69487/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The government is proposing changes to the foreign investment framework that will allow a foreign real estate investor to purchase an off the plan dwelling when another foreign investor has failed to reach settlement.
In announcing the changes, Treasurer Scott Morrison deployed a familiar narrative about foreign investment increasing housing supply and making “housing more affordable for more Australians”.
This idea is in keeping with property development lobbyists, who are focused on getting government to release more land to solve the complex long-term housing affordability problem in cities. 
However, researchers have debunked this idea before (see here and here). Their conclusion is that government cannot supply its way out of the housing affordability problem in major Australian cities.
The government’s focus on the concerns of the property industry renders invisible a broader set of interested parties and a much more nuanced suite of contributing factors and solutions.
The current foreign investment rules are a blunt set of regulatory tools, held captive to the housing supply and global competitiveness debates. 
<h2>Not all foreign real estate investors are the same</h2>
There are important differences between individual foreign real estate investors, which are regularly conflated in foreign investment policy and the public debate.
In broad terms, there are four investor groups. A class-based distinction defines people from the expanding middle class in countries like China. They are called the new middle class.
A disposable asset distinction, which excludes primary residences, separates the three remaining groups. High net worth individuals have disposable assets that exceed US$1 million. Ultra high net worth individuals have asset holdings in excess of US$30 million. Ultra, ultra high net worth individuals have a minimum of US$50 million in disposable assets in a wealth management fund.
In the absence of fine-grained data about which groups are investing and their differential impacts on cities and housing, the treasurer has opted to protect the development industry rather than the people and places within cities. 
A regulatory environment that is sensitive to various investor groups is important in Australia because different investors impact their host cities in diverse ways. 
<h2>Regulating foreign investors, sales or capital</h2>
How foreign capital intersects with local real estate markets depends onon who is investing capital, the properties in which the capital is being invested and the investment vehicles through which the capital is being transferred.
The arrival of foreign capital is not always accompanied by the arrival of new permanent residents for the city. Therefore, the investors interact with local infrastructure and shape housing supply in diverse ways.
There is a big difference between the impacts of new middle class and high net worth investors in cities compared to ultra and ultra, ultra high net worth investment.
Ultra, ultra high net worth individuals can be “free-floating” investors who travel around the world, purchasing real estate in various global cities. Rowland Atkinson argues this group has little allegiance to the host neighbourhoods. 
Ultra high net worth investors might move between multiple residences and have attachments to the neighbourhoods their properties are in. The new middle class and high net worth investors might live in, or send their spouse and/or children to live in, the house they have purchased. They often have an allegiance to the cities or neighbourhoods their properties are in.
The personal motivations of foreign investors are important too. They can extend far beyond financial considerations.
Foreign investors are motivated by the opportunities that exist in Australia and how these relate to their own migration plans, their children’s education and the financial security that Australian real estate supposedly guarantees. 
Therefore, who is investing and their residency status will shape the neighbourhood, city and perhaps even the country into the future. 
Neighbourhoods with high concentrations of ultra high net worth investors in London appear to be (or may be) devoid of people. Local businesses in these suburbs have become untenable as local patronage declines. 
New middle class and high net worth investors might change the social fabric, educational institutions or employment landscape of a neighbourhood or city through habitation, for good or ill. 
International evidence shows that some investors will occupy their property, others place it on the rental market, some buy multi-million-dollar trophy homes, while others increase the housing supply in a neighbourhood of absentee owners and fading businesses. 
Therefore, the impact of foreign investors on housing supply is related to the investment practises of each investor, the amount of capital they bring into Australia and how they invest it. 
<h2>More dynamic foreign investment rules needed</h2>
Housing supply and global competitiveness arguments have captured the foreign real estate investment debate. Both are too simplistic and need to be augmented with additional voices, policies and data. 
Governments justify their pro-foreign investment and business immigration policies through “financial benefits” arguments in times of prosperity and “economic necessity” arguments in times of hardship. 
These top-down narratives position foreign real estate investment as good for the local economy, with secondary benefits such as increasing housing supply and jobs growth through targeted skill migration and business development. 
The government needs to understand how foreign investment is shaping cities from the ground up. This includes: how foreign investment impacts people in the local neighbourhoods where these properties are located; how developers change the dwellings they build to suit foreign investors; how changing educational institutions are shaping foreign student investment; and the experience of first homebuyers who are looking for a home in the same property markets.
Dallas Rogers is urban studies researcher: Institute for Culture and Society &amp; Urban Research Program, Western Sydney University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/dallas-rogers-5269" target="_blank">here</a>.
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Changes for off the plan foreign buyers rely on a broken supply argument

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The Reserve Bank has noted there is a danger that apartment buyers will default on off the plan purchases because of falling ­prices along with the difficulty of obtaining ­finance.
“These risks appear greatest in inner-city Brisbane and Melbourne, where the new supply is largest relative to the existing dwelling stock,” the Reserve Bank said in its latest review of the ­stability of the Australian financial system, released on Friday.
The RBA said the chance of developer sales falling through had been ­increased by new bank restrictions.
These included the restrictions on lending to buyers with foreign incomes, aimed mainly at Chinese investors, and also the more rigorous requirements now being ­imposed by the local banks on mortgage borrowers generally.
“There are signs that some settlements are taking longer and lending valuations are coming in below their contract price, though settlement failures to date remain low,” the bank noted.
The Reserve Bank’s concerns were shared by the banking regulator, the Australian Prudential Regulation Authority.
But APRA's chairman Wayne Byers told a parliamentary committee on Friday that the biggest lending exposures to the east coast apartment boom were taken on by Asian banks, rather than by the big four Australian banks.
The Reserve Bank estimated that 16,000 new apartments in Melbourne over the next two years would add around 18 per cent to the city’s stock of inner-city housing, while an additional 12,000 in Brisbane would add 15 per cent to exisiting stock levels.
Sydney's increase is only around six per cent and the 10,000 new ­apartments scheduled for completion over the next two years spread across the city.
The RBA noted apartment ­prices and rents were weaker in Melbourne and Brisbane, while vacancies were higher.
“If apartment markets were to turn down and settlement difficulties become more widespread, banks would be more likely to incur some loan losses,” the ­bank said.
It said housing default rates in Australia had historically been very low, about 0.5 per cent, with home buyers having a high level of collateral.
The Reserve Bank noted that during the post 2008 global financial crisis, house prices fell by between 30 and 50 per cent in the most affected nations.
“However, Australia is not facing the same economic and financial headwinds as Spain or Ireland did during the financial crisis,” it added.
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RBA fears off the plan apartment non-settlement jitters especially in Melbourne and Brisbane

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Off-market selling, where a property is sold without any public advertising, is an emerging trend in some suburbs across Sydney although it represents a very small proportion of the properties sold.
Given Sydney's auction market strength, there are fiscal risks for vendors selling off-market because there’s no way every possible buyer will have known the property was for sale.
Such an outcome will leave that lingering doubt as to what what your home was ultimately worth.
But for some vendors it is still worth the risk, estate agent John McGrath recently noted.  
He says there are some circumstances where the importance of getting a deal done quickly for a reasonable price outweighs the alternative of going to the open market and negotiating with buyers over several weeks for the best price.
Such circumstances include relationship breakdown and financial stress, he suggested.
Off-market selling often enables privacy too especially for prestige clients. 
They typically don’t need a quick deal and are happy to wait while avoiding the public advertising campaigns and especially the intrusion of open for inspections. 
Off-market offerings can possibly generate an electric air of exclusivity.
Australian estate agents have adopted the term "off-market", though they have been occasionally dubbed "pocket listings." That's a real estate term used in United States. The never advertised pocket listing data is hard to come by, but sits at around 8.5% in some US states.
The off-market Sydney offerings are the domain of savvy estate agents who dip into their extensive database for potential buyers. 
Sure some time-wasting clients list off-market simply to test the waters, with the ambition of achieving their amazing dream price.
But there are genuine reasons some vendors go off-market especially if their property is tenanted with preparation for the perfect property photo shoot quite difficult to achieve.
Others do it to avoid the cost of a marketing campaign, but ultimately, McGrath thinks sellers "pay" for this strategy with a reduced sale price due to reduced competition.
It is the big numbers of buyers who've handed over their phone and email contact details that has assisted the current surge in off-markets.
Well-organised estate agents have created this ability to sell directly through their database. 
The best agents are staying intouch with forlorn buyers - dedicating time to developing relationships with the purchasers they meet at opens, auctions and online.
Another reason for off-markets has been the buyers’ agent industry which seeks out time-poor families and executives especially in markets that are undersupplied. 
That's much of Sydney this spring.
I monitored 22 property sales from across Sydney last weekend which fetched a combined $37.5 million under the hammer. 
The $37.5 million was around $5.25 million above the top price guide indication. That's a 16 percent premium that buyers paid on top of estate agent estimates.
It represented $6 million more if the properties had only sold at the price guidance or at the lower end of the price guidance for the 22 properties.
The biggest premium sale was in Drummoyne when a four bedroom waterfront fetched just over $8 million, smashing its price guide of $6 million to $6.5 million.
Some 20 of the 22 sold for above expectations. Only one, a three bedroom $582,000 Blacktown home, sold at $8000 less than the guide given pre-auction.
It sold for $582,500, having quoted a price guide of $590,000 to $630,000.
This article was first published in the Saturday Daily Telegraph.
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Off-market property sales come with risks

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GUEST OBSERVER
Today’s millennials are fast turning their backs on traditional marketing, instead choosing to consume and interact through virtual reality, but their willingness to buy into the imaginary and immaterial has real life conversions.
Long before the Pokémon renaissance took full effect, Marshall White Projects was reinventing the way off the plan properties are marketed and sold to Gen Ys and Millennials. 
This generation has changed the game; they are heavily reliant on the digital sphere and entrust it with major life decisions.
People plan dates, book accommodation and apply for jobs with people they’ve never met and in places they’ve never been, online every day – so why would we expect any less of them when it comes to purchasing property?
This demographic is more accepting of the off-the-plan model and accustomed to investing in sites unforeseen, so what is it that makes them take the plunge, swipe right and commit to the unknown? 
Aesthetics. They say a picture speaks a thousand words and for a time-poor generation with a shorter attention span than a goldfish, it isn’t any wonder that digital assets are outperforming traditional marketing strategies. 
These buyers are far savvier for having grown up in a digital landscape, their discerning tastes transcend the physical with renders, fly throughs and 3D floorplans of greater value to them than a stagnant display suite.
With this in mind, Marshall White Projects took 308 Carlisle Street to market without a display suite nor budget for print advertising. Each of the 45 apartments were sold in under six weeks, with the majority of purchasers aged between 25 and 35. 
Drawn to the bohemian Balaclava location, buyers were enticed by a refined sales campaign that simply put forth the advantages of a well-connected lifestyle and an apartment of prestige. 
It’s not the first time Marshall White Projects has proved its ability to earn, not buy results in an overly saturated market. Earlier this year the agency sold all 27 luxury apartments at High&amp; Spring in the same timeframe without any traditional or digital advertising and achieved a staggering sales average of approximately $1,050,000 per apartment. 
Buyers are overloaded with choice and bombarded with advertisements, which has made them less perceptible to traditional marketing tactics. This as an opportunity to better invest the hundreds of thousands of dollars developers would spend on lavish display suites into innovative alternatives that are not only cost and time effective, but more authentic and impactful. 
In order to be effective you must know your audience, what they value, who they trust, where they source their information – these things often hold more significance than their gender or profession and allow us to develop tailored marketing strategies that resonate with our buyers on a deeper level.
Our integrated approach simplifies the sales process and leverages technology, videography, photography, renders, brand partnerships, and direct marketing to achieve a far more cost effect result within the shortest possible time frame.
Leonard Teplin is director, Marshall White Projects and can be contacted <a href="https://www.marshallwhiteprojects.com.au" target="_blank">here</a>.
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Gen Y changes the property game

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Off-the-plan property portal Investorist has launched a B Round Capital Raising, seeking up to $7 million to further expand its global activities.
Investorist, with a valuation of around $30 million, comes with more than $45 billion in apartment listings and over 5,000 customers in 25 countries. 
Headquartered in Melbourne, Investorist was initially bootstrapped by Ellis before attracting seed investment from David Tarascio, chief executive of Salta Capital to fund expansion into China as well as other Australian cities.
The company undertook its A Round Capital Raise in July 2015, raising $ 2.5 million. 
<img src="/images/2016/09/08/Jon-Ellis.jpg" alt="">
 “We are currently in rapid global scale up mode, and the company is undertaking this next Capital Raise to drive further penetration into new and existing markets and fund the resources necessary to achieve this,” said Jon Ellis, founder and CEO of Investorist (above). 
“In Australia, about 60-70 percent of all apartment sales occur 'off market' or pre-launch with the remainder sold 'on market' after public launch.
"Whilst our platform has captured a healthy slice of these project listings, we have very ambitious targets, especially for the UK which is double the size of Australia's OTP market, and the US which is five times the size,” he added.
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