Preliminary data by research giant Charter Keck Cramer reveals a 54 per cent decline in Build to Sell apartments across Australia's capital cities, while the Build to Rent boom continues with a 378 per cent increase over the last five years.

Charter Keck Cramer's upcoming National State of the Market Report - Key Metropolitan Areas, scheduled for release in September, will reveal&nbsp;a dramatic transformation in apartment supply patterns across Australia's capital cities between FY2016-2020 and FY2021-2025.

The Build to Sell (BTS) apartment sector has experienced a substantial contraction, with total supply falling by 54 per cent compared to the previous five-year period. The decline represents a reduction of 149,200 apartments across all capital cities.

<img alt="BTS Charter Keck Cramer" data-entity-type="file" data-entity-uuid="3db2ddf3-e7c0-481f-b8b9-63efb365cb80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-20%20at%2011.26.34%E2%80%AFAM.png?VersionId=bsQl8inhZA7FeiPamnGvw1tse0obBdSd" />

Sydney led the downturn with a decrease of 73,600 apartments, followed by Melbourne (-42,800) and Brisbane (-26,800). Perth and Adelaide also recorded significant declines of 6,400 and 2,400 apartments respectively. Only Gold Coast and Canberra bucked the trend, with modest increases of 500 and 2,300 apartments.

In stark contrast, the Build to Rent (BTR) sector has emerged as a major force in the apartment market, recording a remarkable 378% increase in supply. This growth added 8,590 apartments across the capital cities during FY2021-2025. Melbourne dominated BTR growth with 6,160 additional apartments, while Sydney contributed 2,100 units. Brisbane and Canberra also recorded growth of 800 and 330 apartments respectively. Gold Coast and Perth recorded minor declines, while Adelaide maintained steady levels.

<img alt="BTR CKC" data-entity-type="file" data-entity-uuid="ca13ffd4-ab93-4828-afd2-4c3dccbd2b51" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-20%20at%2011.28.54%E2%80%AFAM.png?VersionId=SXNnpcJuFD36ViWOwF6izBBqcQc3NWao" />

“These preliminary findings indicate a fundamental shift in Australia's apartment development landscape, with traditional Build to Sell models giving way to institutional Build to Rent developments,” said Richard Temlett, Charter Keck Cramer’s National Executive Director of Research.

"This transition reflects changing investor preferences, regulatory environments and housing affordability challenges across major metropolitan areas.”

The complete Charter Keck Cramer National State of the Market Report – Key Metropolitan Areas will provide comprehensive analysis of these trends, their underlying drivers and implications for developers, investors and policymakers when released in September.

Joel Robinson

Build to Sell apartment supply drops 54% in five years across Australian capital cities

Verso Development Group is seeking to bring over 1,100 apartments to the heart of Brisbane's Toowong, with plans filed for a $1 billion, triple tower development known as Toowong Central.

The landmark urban regeneration project "aims to reshape the core of Brisbane’s inner-west riverside suburb."

Covering over 1.4-hectares across&nbsp;Sherwood Road, High Street, and Jephson Street, Toowong Central has been designed by KHA and will comprise three towers rising 49, 55, and 58 levels.

<img alt="Toowong Central" data-entity-type="file" data-entity-uuid="48611e3d-7123-4b99-b2cb-bfa4bc98024f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenities.png?VersionId=yKBexB.BgCkq4OET8fHDkWs0d3DjxOKJ" />

According to the Urban Context Report prepared by Urbis, Toowong Central is positioned as a “city-defining precinct reclaiming Toowong as ‘the best destination in the west’,” with a vision to deliver density differently, strengthen Toowong’s identity, and lead subtropical urban design.

There will be a wide range of apartment configurations, from one-bedrooms to five-bedroom penthouses, as well as short-term accomodation offerings. The design prioritises pedestrian permeability, with an activated public realm featuring a central civic plaza, laneways, and street-level retail and dining.

“The central square’s structure, programming, scale and location creates a social anchor - shaped by its edges, flexible for use, and animated by a diversity of experiences throughout the day and into the evening,” the Urban Context Report noted, reinforcing the project's ambition to become a vibrant community destination.

Design excellence was pursued through an international design competition, attracting entries from renowned practices such as UNStudio and BIG. KHA’s winning design distinguished itself with a ceremonial approach to the public realm, integrating terraces, tiered seating, and green infrastructure to promote social interaction and resilience.

The development builds upon two existing approvals: the 25- and 20-storey towers of the Aviary Toowong proposal, and a separate 25- and 24-storey approval at 88 Jephson Street. Consolidation of these fragmented landholdings under a precinct-wide approach allows for increased community value and cohesive urban integration.

Urbis Director Nicholas Stevenson said Toowong Central will bridge the gap in Toowong's current experience, unlocking the potential of the wider precinct.

"Overcoming experiential constraints and leveraging contextual advantages – Toowong Central will redefine Brisbane's inner west.”

<img alt="Toowong Central" data-entity-type="file" data-entity-uuid="73f7a702-625d-452d-9df2-30a0863ac1e8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/master.png?VersionId=TZdh6wxGC_8IIroXpdkZfuhlS8mFZnea" />

Toowong Central’s ambition extends beyond residential and commercial outcomes. Uses under consideration include a world-class hotel, university facilities, a museum, and health and wellness services, reflecting its role as a western gateway to Brisbane’s growing innovation corridor between the CBD and the University of Queensland.

Urbis Managing Partner James Tuma said Brisbane has no greater opportunity to showcase the future of urban living than Toowong – a sustainable, economically vibrant, and people-centric place that embodies the best of Brisbane.

[The plans] gives us a glimpse into our future as a globally relevant, youthful, entrepreneurial, and distinctly subtropical city.”

$1 billion Toowong Central to deliver 1,100 apartments to undersupplied Brisbane market

In <a href="https://www.apartments.com.au/developments/runaway-bay-qld-4216">Runaway Bay</a>, new townhouse-scale waterfront residences are rare - but ones built to the standards found on Sovereign Island are almost unheard of.

<a href="https://www.apartments.com.au/new-townhouses/ocean-suites-on-jennifer-10-12-jennifer-avenue-runaway-bay-qld-4216">Ocean Suites on Jennifer</a>&nbsp;changes that, delivering a calibre of construction and detailing that places its seven villas well above the typical market offering in this northern Gold Coast pocket.

Ocean Suites on Jennifer will be move-in ready before Christmas this year, giving buyers the chance to spend the summer on the water in one of Runaway Bay’s rare new waterfront residences.&nbsp;

[smartcode_project:default project_id=138718 project_image_fid=214444]

The development is a collaboration between <a href="https://www.apartments.com.au/architects/stuart-osman">Stuart Osman Design</a> and <a href="https://www.apartments.com.au/developers/sand-side-developments">Sand Side Developments</a>, with construction by <a href="https://www.apartments.com.au/builders/alroe-constructions">Alroe Constructions</a>.

Architect Stuart Osman says the intent from the outset was to create a home people would be drawn to. “When you build anything, the design is to make you want to go hang out in this house,” he says.&nbsp;

Ocean Suites on Jennifer’s design features a front façade softened with planter boxes, rear pool areas, and rooftop decks looking over the water.&nbsp;

Inside, voids and high skylights bring daylight deep into the centre of each home, while ceiling heights of 2.85 metres maintain a strong sense of volume.

Each four-level residence spans 345 to 388 sqm, with layouts accommodating multi-generational living - a ground-floor bedroom suite for older family members and upper levels for the rest of the household. A lift connects all floors.

[smartcode_project:default project_id=138718 project_image_fid=214435]

For Andrew Erwin, Director at NPA, the project’s appeal lies in both its location and the detail in execution.&nbsp;

"At Ocean Suites, you’ve got a canal-front setting with direct Broadwater access and a level of finish you’d normally only see in the city’s most prestigious addresses. The four-level layouts, the glass-framed living areas, the private pools, even the extended kitchens, every part of it has been designed with the buyer in mind,” he says.

Those buyers have so far been a mix of Gold Coast locals and interstate purchasers, many seeking a lock-up-and-leave holiday home or a downsized residence without sacrificing space for visiting family.&nbsp;

Older households with teenage children are a recurring profile, drawn to layouts that support multi-generational living and the ability to host extended stays.

[smartcode_project:default project_id=138718 project_image_fid=214432]

Material selection reinforces the project’s quality-first ethos, with every home appointed to a premium standard. Kitchens and ensuites feature engineered stone surfaces, complemented by prestige oak engineered timber floors, Victorian ash hardwood staircases, and soft loop-pile carpet.

Premium lighting, statement pendants, ceiling fans, and Fujitsu ducted air conditioning elevate both comfort and design. Each residence also includes a suite of high-end appliances as standard - Fisher &amp; Paykel integrated fridges, Bosch ovens, induction cooktops and dishwashers, Vintec wine fridges, and Franke sinks.

Beyond the interiors, residents enjoy an enviable lifestyle with rooftop terraces, private plunge pools, fire pit areas, outdoor showers, smart home automation, laundry chutes, and private pontoons.

[smartcode_project:default project_id=138718 project_image_fid=214452]

With no additional upgrade costs, Sand Side Developments underscores its no-shortcuts approach, delivering homes where luxury and amenity come as standard.

Osman adds that the kitchen has been designed as “the main hub of the house” with six metres high skylights above a galley-style layout that “makes it feel bigger, brighter, whiter” and “brings light into the centre of the home.”

Both architect and builder emphasise a shared commitment to delivering the intended design without compromise. “Working with Alroe’s structural team and their construction team, it’s been great to make sure that the look and feel that was originally intended is the result achieved at the end of the project,” Osman says.&nbsp;

[smartcode_project:default project_id=138718 project_image_fid=214453]

Outdoor living has been given equal consideration, with rooftop terraces designed for entertaining with a fire pit and bar, and spacious undercover patios featuring private plunge pools.

The marine access is as carefully executed as the homes themselves. An eight-metre gangway leads to a six-metre private pontoon capable of mooring vessels up to 30 feet, just 300 metres by water from the Broadwater.&nbsp;

Even the orientation of each villa has been optimised to capture long views down the canal, across the Broadwater, and south to Main Beach.

With construction in its final stages, just three of the seven villas remain, priced from $3.365 million to $3.695 million.

[smartcode_project_cta:default project_id=138718]

Sovereign Island standards come to Runaway Bay with Ocean Suites on Jennifer

Without local developer <a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a>, it could be argued that the small suburb of <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> would be left behind when it comes to both new housing and retail opportunities.

Gardner Vaughan, one of South East Queensland’s most reputable builder-developers, has been based in <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> for the last decade. They plan to maintain their presence in the northern <a href="https://www.apartments.com.au/developments/brisbane-qld">Brisbane</a> suburb, just seven kilometres from Brisbane Airport and nine kilometres from the city, with the development of <a href="https://www.apartments.com.au/new-apartments/danby-lane-nundah-village-5-danby-lane-nundah-qld-4012">Danby Lane</a>, the first major project in several years in the heart of the town centre.

GVG will retain one of the commercial spaces in the new mixed-use building for their office headquarters. It will be located in the commercial podium, alongside several other new office spaces. Below will be a street-level retail precinct designed to reinvigorate the local economy, and above, 84 brand-new apartments.

[smartcode_project:default project_id=112531 project_image_fid=320114]

Over 60 percent of the apartments have already been snapped up, with buyers eager to secure one of the rare new apartments in <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a>, as well as to benefit from Gardner Vaughan’s solid reputation and long-standing presence in the local community.

[smartcode_project:default project_id=112531 project_image_fid=320117]

Gardner Vaughan identified the site at the corner of Buckland Road and Danby Lane for its proximity to key amenities. Within 400 metres of the development, <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> Village offers a variety of cafes, restaurants, and pubs. <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> Train Station, just 400 metres away, provides a quick 20-minute train ride into Roma Street.

The development has also attracted young families, drawn to the proximity of not one, but twelve parks, with Boyd Park and Oxenham Park being the most notable. Established families have shown interest due to the close proximity of <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a> State School and Mary MacKillop College.

The one- and two-bedroom apartments in the building have already been snapped up, while the larger three- and four-bedroom apartments—ranging from a generous 117 sqm to nearly 200 sqm—remain highly sought after. There are also just three exclusive luxury penthouses left to sell.

With its in-house construction capability, Gardner Vaughan has already commenced construction on-site and expects to complete the building by March 2027. It's hard to see another opportunity to buy brand new in <a href="https://www.apartments.com.au/developments/nundah-qld-4012">Nundah</a>, where creating a site anywhere near the scale of the Danby Lane is becoming more and more difficult.

[smartcode_project_cta:default project_id=112531]

Why Danby Lane is the focal point for change in Brisbane's Nundah

<a href="https://www.apartments.com.au/developers/metro-property-group">Metro Property Group</a>’s flagship townhouse development, Citrine Townhomes in <a href="https://www.apartments.com.au/developments/rochedale-qld-4123">Rochedale</a>, has reached another key construction milestone, with the first stage of townhouses now in the defects phase.

All building works for Stage 1 are complete, with the internal roads asphalted, line marking finished, and the bin store slab poured.&nbsp;All essential services, including permanent power, sewer, gas, and water, are now connected and operational.

The defects process is expected to continue until late-August.

<img alt="Citrine Townhomes, Rochedale" data-entity-type="file" data-entity-uuid="f48ad1d8-7bb2-424a-a378-2caa4d34c27d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/017%20-%20%20ROLLEY%20PHOTO%20MEDIA%20%20%20-24072025.jpg?VersionId=o5BC3LgYTwxcufsjldO8mkPww3gix1NC" />

Stage 2 is also moving forward steadily, with all townhouses sheeted, the first coat of paint applied, and joinery installed throughout. Tiling has been completed on six of the seven blocks, and the pool is scheduled to be pebblecreted by the end of August.

Stage 3 continues to gather momentum, with external cladding completed on three of the eight blocks. All townhouses have been fully roughed-in for electrical, plumbing, and air conditioning, and the first two blocks have now progressed to internal sheeting.

Stage 1 and 2 are 100 per cent sold and there are now just 10 four-bedroom townhomes left in Stage 3, priced from $1,125,000.

[smartcode_project:default project_id=136295 project_image_fid=211]

Residents at <a href="https://www.apartments.com.au/new-townhouses/citrine-townhomes-rochedale-311-gardner-road-rochedale-qld-4123">Citrine Townhomes</a> can also look forward to high-quality shared amenities. The residents' facility will feature a pool, landscaped areas, and a BBQ space, contributing to a lifestyle-focused community environment.

Metro’s fully furnished display home has generated strong interest locally, reinforcing the market’s confidence in the project. Stage 1 and 2 are completely sold out and Stage 3 has officially launched and is selling fast. Just 10 townhouses remain for sale in the development.

[smartcode_project:default project_id=136295 project_image_fid=273134]

The broader Citrine development comprises 90 three and four-bedroom townhomes designed across two to three levels, offering a contemporary contrast to Rochedale’s surrounding single-family homes.

Located just 17 km from Brisbane CBD, Citrine is within walking distance to schools, parks, and the popular Rochedale Village, home to Coles, medical services, and dining options.

Metro Property Group remains on track for project completion, with settlements forecast for Stage 1 in October/November 2025, Stage 2 in November/December 2025, and Stage 3 in January/February 2026.

[smartcode_project_cta:default project_id=136295]

First stage of townhouses at Citrine Rochedale reaches completion milestone

Samuel Property

Louise Melbourne, the striking Samuel Property-developed, Cera Stribley-designed apartment project just off Albert Park, has hit a major milestone.

The 16-level development, which launched last year, is now 70 per cent sold, after a strong run of sales in the first half of 2023.

Blair Property Group's Darren Blair, who is exclusively marketing Louise, says the majority of apartments have been snapped up by downsizers.

"Every purchaser from level 10 and above is a downsizer," Blair says.

"They picked up all of the big apartments on the sought-after north west corner, which will offer the best views in the building."

[smartcode_project:default project_id=112174 project_image_fid=199592]

Blair says there was a big run of sales to downsizers and owner-occupiers toward the back end of last year, and that's spilled into 2023.

"Buyers are starting to see some positives in the market in 2023", Blair notes.

"There's also a large cohort&nbsp;who are wanting to completely exit the rental market, as prices continue to trend upwards."

The diverse product mix in Louise, a mix 89 one, two and three-bedroom apartments, has seen a diverse number of buyers come through the door.

[smartcode_project:default project_id=112174 project_image_fid=199599]

Blair has said investors are slowly starting to come out of the woodwork, primarily from overseas, as local investors wait to see the RBA's next move.

The development team, led by prominent developer Samuel Property, are also well advanced in their construction phase. They're hoping to start demolition of the block of 1950s flats on the 1224 sqm site in March, with the aim of commencing construction on Louise in May.

Well regarded builder Hamilton Marino will be in charge of construction.&nbsp;

"They're a well versed builder with a good name in the market, which will breed further confidence for buyers," Blair added.

[smartcode_project:default project_id=112174 project_image_fid=199597]

Prices start at just over $500,000 for the one-bedroom apartments in Louise Melbourne, and $719,500 for the two-bedrooms.

Aptly named Louise, the site is&nbsp;situated on the north-west corner of Louise Street and Queens Lane, and is a nod to the surrounding art deco architecture, blending 1920's design charm with the sensibilities of modern urban living.&nbsp;&nbsp;

There's extensive resident amenity in the building. A swimming pool, which is located beneath a distinctive skylight, forms the heart of a wellness centre, which also features a steam room and a landscaped outdoor terrace that wraps around the communal areas.

[smartcode_project:default project_id=112174 project_image_fid=199646]

There's also&nbsp;a bookable private dining room, which comes with a fully-equipped kitchen, and a private lounge area, which has been designed as a&nbsp;space for more informal get-togethers.

Samuel Property,&nbsp;who since being founded in 2009 by its current Managing Director Illan Samuel, have predominantly concentrated on the high-end boutique owner-occupier market in some of Melbourne's most affluent suburbs.

Their last two projects have been Willow, just 14 apartments in Brighton, and most recently Edition in Toorak, on the dress circle Lansell Road, which has just three house-sized residences.

They have just received approval for 91 apartments across two five-level buildings on Phillip Island.

[smartcode_project_cta:default project_id=112174]

Blair Property Group's Darren Blair, who is exclusively marketing Louise, says the majority of apartments have been snapped up by downsizers.

Louise Melbourne hits 70% sold

The prominent Melbourne developer&nbsp;Samuel Property is taking on something a little different for its next residential project.

They&#39;re set to&nbsp;launch&nbsp;Louise, their anticipated apartment tower just off the sought-after St Kilda Road.

Named after its location at 8 Louise Street, Louise will home 98&nbsp;apartments across its&nbsp;16&nbsp;levels,&nbsp;a maximum of just eight apartments per floor.

The tower will be crowned by a near 600 sqm penthouse with 360 degree views of the city, Albert Park, and&nbsp;Faulkner Bay.

Blair Property Group Founder Darren Blair, who is handling the sales of Louise, says there&#39;s something for everyone at Louise, with one, two, three and four-bedroom apartments on offer.

[smartcode_project:default project_id=112174 project_image_fid=199595]

&quot;We&#39;re expecting everyone from investors and first home buyers interested in the one and two-bedroom stock, to downsizers and owner-occupiers looking at the larger two beds into the three-beds,&quot; Blair says, adding that he expects to be fielding plenty of enquiry from families, as well as those who maybe live down in Mornington Peninsula but want a city pad.

The building is more focused on the owner-occupier, with just over 10 per cent one-bed apartments. Two-bedroom apartments make up two thirds of the building. Blair believes some will get merged to make larger apartments by those seeking a bigger space.

Buyers can purchase in the building from $497,500, with the biggest, higher-level apartments looking to achieve over $11 million.

The location reigns supreme for Louise, just moments from Albert Park and a short stroll to Fawkner Park.

&quot;The project has the best of Melbourne on its doorstep,&quot; Blair adds.

&quot;Where does your $10 Uber take you where you live? From Louise it takes you to the best parts of Melbourne, from the city to Chapel Street and even Middle Park Beach.&quot;

Renowned architects Cera Stribley have handled the design of Louise, with a&nbsp;vision to deliver a building that is more sensitive to the characteristics of St Kilda Road.

[smartcode_project:default project_id=112174 project_image_fid=199598]

The building is in keeping with the surroundings for the first three levels to the podium, a red brick finish paying homage to the current streetscape.

Cera Stribley Managing Principal, Domenic Cerantonio said it was important future-residents of Louise were provided an exceptionally designed dwelling that complemented the well-endowed local area.

&ldquo;Every aspect of Louise has been designed to epitomise quality of life,&quot;&nbsp;Cerantonio says.

&quot;When it comes to apartment living, there are few buildings that offer such an incredible location as Louise. From sunrise to sunset, there is so much to love about the area; parks, beach, city &ndash; the lifestyle here has it all.

[smartcode_project:default project_id=112174 project_image_fid=199602]

&quot;The interior design of Louise is very much inspired by this unparalleled locale, and the Art Deco glamour of the heritage architecture found around the area.&rdquo;

Louise is a change of tact for Samuel, who since being founded in 2009 by its current Managing Director Illan Samuel, have predominantly concentrated on the high-end boutique owner-occupier market.

Their last two projects have been Willow, just 14 apartments in Brighton, and most recently Edition in Toorak, on the dress circle Lansell Road, which has just three house-sized residences.

But they&#39;ve kept the same principles in Louise, focusing on the owner-occupier and creating spaces to be lived in.

[smartcode_project:default project_id=112174 project_image_fid=199603]

The opportunity arose when Samuel secured a block of 1950s flats, on a prized 1224&nbsp;sqm block, for $21 million last year.

Demolition of the flats is expected to commence this year, with construction to start in early 2023. The build is expected to take around two years.

It&#39;s&nbsp;a rare opportunity for buyers to get near the prestigious St Kilda Road precinct, and to buy into a project that while is a large building, isn&#39;t as high density as some of its neighbours.

[smartcode_project_cta: project_id=112174]

The building is in keeping with the surroundings for the first three levels to the podium, a red brick finish paying homage to the current streetscape

Samuel Property set to launch design-driven Melbourne apartments, Louise 

<html><body>
Nine months down and heading into the home stretch of 2015, I feel like a lot of local developers are very much standing on the sidelines. They are just itching to get into the marketplace, but have either been the bridesmaid but never the bride in missing out on their desired sites, or are simply waiting for the market to cool down.

If you refer to yourself as a “developer”, you instinctively have trouble with the above two scenarios. You want to find that next project, but you can’t overpay. Surely the market is about to turn downwards. It has to!

The flow of money from Asia has to stop soon, it can’t keep going on like this forever! Maybe, but maybe not. No one has the magic property 8-ball.

Some have turned to selling existing sites (with or without permits) given how strongly the market has performed, while others have looked at sites interstate or further out from the Melbourne CBD, something they would have never originally considered. Whilst most would never admit it, they are now working to smaller profit margins.

Are there risks in the above? Absolutely. Flipping sites is never easy, and the profits can pale (as do the risks) in comparison to actually developing the end product. Investing in an interstate market can be fraught with obstacles, from using an unknown consultant team, misunderstanding local planning laws, and misjudging the end market based on a lack of local knowledge.

Working to a smaller profit margin also leaves one open to a correction in the marketplace from increased supply (or just a stalling of appetite) on end residential values or the mercy of builders/construction cost. If the margin gets too tight, that will trickle onto lenders viability to lend against the project, no matter how maybe boxes may be ticked to de-risk.

<h2>What other issues are we seeing?</h2>

Obtaining planning permits is getting more and more challenging to forecast from a time/cost perspective. Local councils in the middle or outer ring of Melbourne are struggling to keep up with applications and the ability to correctly vet them. Many are simply deemed too hard in unknown GR zoned land, and have refused to let VCAT make the decision.

I’d also suggest there are some political benefits in this approach given heavy local objector groups in some municipalities. In the inner city, the backlog with the Planning Minister is still significant from all reports. Is there a risk of a bottleneck, or Melbourne becoming just “too hard”?

We might find out if overseas developers don’t make repeat purchases, or a few local developers come unstuck working to lower margins.

Local buyers are also becoming more sophisticated in every respect. Where location has traditionally been “King”, a smart floor plan is now “Queen”; and buyers want both! A one bedroom apartment can be sized at 52 sqm with an outdoor area, but if the kitchen is stuck in a dark corridor or the living space is too narrow to accommodate a couch, coffee table, and TV unit, be prepared to be left with that stock at settlement unless heavily discounted or sold wholesale.

Developers really need to push architects to create usable spaces whilst balancing yield requirements. Too often a developer can get caught up with profitability, and that is of course important. But it is also important to realize an actual profit and not carry compromised stock. Your last stock sold is often your profit.

Also, selling apartments off the plan is more sophisticated than ever before, predominantly due to the quality of 3D renders which often reflect a kitchen or bathroom buyers might have been used to seeing in “The Block”. It’s great that the marketplace is pushing quality, but this comes at a cost.

I am certain buyers expect the finished product to look like the marketing render, regardless of how many “artist impression” disclaimers might appear in the bottom corner. Everyone loves putting in some feature joinery or a nice pendant, and it should also be in the apartment at settlement.

Do I still think there are opportunities in the marketplace? Without a doubt. Samuel Property have sold two development sites (one with and one without a permit) this year, two developments have been sold out off the plan, and we’ve purchased five other parcels for development. Property is supposed to be long term and safe, whilst the stock market is supposed to be fluid and liquid.

But in the current 2015 marketplace, I see some similarities. If you intend to be active, you need to be willing to be nimble, do your due diligence, act with conviction as you read the market, and be comfortable with the high risks associated with your project.

Whatever comes in 2016, it won’t be the same as 2015.

Illan Samuel is the Managing Director of <a href="http://www.samuel.com.au/">Samuel Property</a>.
</body></html>

LittleGeneral

Don't just stand there, buy something!

<html><body>
One of the major changes to planning during the term of the last Victorian Government was the implementation of <a href="/news/planning-minister-approves-new-residential-zones-in-39-victorian-lgas">new residential and commercial zones</a> right throughout <a href="/news/planning-minister-approves-new-residential-zones-in-39-victorian-lgas">metropolitan and regional areas</a>.

The new planning zones were designed to provide clarity to the community and also to developers in order for them to make investment decisions with a clear understanding of what can be built on the sites they purchase.

One developer which is working away in the General Residential and Residential Growth Zones is <a href="http://www.samuel.com.au/">Samuel Property</a>.

To date Samuel Property have begun development of two projects: Vela in Blackburn and Lennox Glen Iris. Apartments.com.au recently chatted with Illan Samuel who is head of the company and some interesting planning anecdotes came out of the conversation.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/lennox.jpg" rel="gallery-all" title="Lennox Glen Iris. © Samuel Property"><img alt="" class="image-article-full-width-580px" height="337" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/lennox.jpg?itok=XRuU3Ah1" title="Lennox Glen Iris. © Samuel Property" width="580"></a>

<figcaption>Lennox Glen Iris. © Samuel Property</figcaption></figure>Lennox, located at 25 Belmont Avenue North in Glen Iris, was initially targeted at the downsizer market and four weeks out from kicking off the marketing campaign for the project, a decision was made to switch direction and target young professionals.

All 20 apartments were sold in 4-5 weeks and it attracted “very much a hyper-local buyer pool - young people who were either renting or originally grew up in the area - and no offshore buyers” according to Samuel.

Illan Samuel told Apartments.com.au that development sites in side streets right near main strips are preferred; buyers like being close to the action but not directly on the main drag as it were. Lennox in Glen Iris and Vela in Blackburn fit this bill.

Take this <a href="http://planningschemes.dpcd.vic.gov.au/__data/assets/pdf_file/0007/194614/whitehorse02zn.pdf">map of zones</a> for the Blackburn area in Whitehorse, Vela Blackburn as seen in the render below is located at 4 Station Street, just off Whitehorse Road and right inside the <a href="http://planningschemes.dpcd.vic.gov.au/schemes/whitehorse/ordinance/32_07s03_whse.pdf">RGZ3</a> zone. Lennox in Glen Iris located at 25 Belmont Avenue North comes under <a href="http://planningschemes.dpcd.vic.gov.au/schemes/stonnington/ordinance/32_08s10_ston.pdf">GRZ10</a> according to <a href="http://planningschemes.dpcd.vic.gov.au/__data/assets/pdf_file/0007/191743/stonnington06zn.pdf">Stonnington zone maps</a> for Glen Iris.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/apartments4.jpg" rel="gallery-all" title="Vela Blackburn. © Samuel Property"><img alt="" class="image-article-full-width-580px" height="330" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/apartments4.jpg?itok=7vqlzmIm" title="Vela Blackburn. © Samuel Property" width="580"></a>

<figcaption>Vela Blackburn. © Samuel Property</figcaption></figure>Vela in Blackburn, like Lennox in Glen Iris, has sold out of its 24 apartments and Illan told Apartments.com.au the sales campaign drew in a lot of local buyers.

As is the custom when Apartments.com.au asks developers about future plans, there was a lot of coyness, but Illan did tell us that a similar profile development - side street just off a main strip in RGZ or GRZ - is currently at planning in Glen Eira.

Vela in Blackburn is already under construction and Lennox Glen Iris is set to commence construction in October.

<h2>Comment</h2>

There is still, no doubt, scope to improve the planning zones further. For instance, encouraging (forcing?) councils to apply them to more areas in their LGA and experimenting with other "carrot or the stick" tools like density bonuses which might allow developers to build an extra level in exchange for affordable or social housing components in developments located in any General Residential or Residential Growth Zone.

Regardless, it is encouraging to see capital seek out these development opportunities and from early-adopter and entrepreneurial developers as well; as it is the little things, built in high volume, that are going to count over the long run if Melbourne is to reach the goal of diversifying its residential stock as we grow over the coming decades.

Lead image credit: Lennox Glen Iris location, <a href="http://www.lennoxgleniris.com.au/video">Samuel Property</a>.
</body></html>

Samuel Property

Editor's Picks

Have something to contribute?

The latest real estate & off the plan properties & news, delivered to your inbox.

Developments

New apartments

New townhouses

News

The latest real estate & off the plan properties & news, delivered to your inbox.

Samuel Property

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

The latest real estate & off the plan properties & news, delivered to your inbox.

Developments

New apartments

New townhouses

News

The latest real estate & off the plan properties & news, delivered to your inbox.