The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

High-rise

You can almost count on one hand the number of high-rise apartment developments to launch in Mermaid Beach in the last five years.

The last two, Dawn and Bela, both by the South East Queensland developer Mosaic Property Group, sold out all of its 90-or so apartments within a few weeks last year, such the rarity of high-rise opportunities.

The latest opportunity comes from the Melbourne developer Hirsch &amp; Faigen, who are seeing similarly quick-fire success at Yves, their $200 million, three-tower development at 7-9 Mermaid Avenue, designed by the renowned architecture firm Rothelowman.

[smartcode_project:default project_id=102451 project_image_fid=186075]

They&#39;ve sold half of the 146 apartments in the first two months of marketing, unsurprisingly with locals dominating the purchasing.

Hirsch and Faigen&rsquo;s QLD Sales Manager, Alex Jokovich, said the locality of buyers&nbsp;is a huge testament to Yves&rsquo; appeal to discerning locals who have a deep appreciation and understanding of the projects positioning in one of the coasts&rsquo; most coveted residential addresses.

Rothelowman&nbsp;noted the site presented a unique opportunity to create a transitional tower project at the junction between the intensity of cosmopolitan Broadbeach and the more traditional/ laidback vestiges that is well defined by places such as Mermaid Beach.

[smartcode_project:default project_id=102451 project_image_fid=186075]

&quot;Between the sleepless Broadbeach &amp; gentrified Burleigh, Mermaid Beach captures the diminishing modesty&nbsp;of the Gold Coast,&quot;&nbsp;Rothelowman&nbsp;wrote in their design statement to the Gold Coast City Council.

&quot;It is a microcosm with cafes, craft and culture. A community of locals and tourists relishing a more humble urban lifestyle than the north &amp; south.&quot;

Entry to Yves is through a&nbsp;deliberately intimate arrival experience which channels residents through lush subtropical plantings towards the entry, where residents and guests are then greeted by an expansive four-storey-height lobby space.

Yves comprises&nbsp;one, two and three-bedroom designs, in addition to the premium offerings of two four-bedroom, half-floor sub-penthouses and a single full-floor penthouse.

[smartcode_project:default project_id=102451 project_image_fid=186074]

High-rise developments always offer a great opportunity to create more extensive amenity spaces than a low-rise development to service its higher density.

Yves residents get exclusive access to the residents&rsquo; level 03 recreation deck, which features a resort-style pool, a gym, a sauna, an outdoor barbecue area and a kid&rsquo;s play space.

There&#39;s further amenity on the level 24 rooftop terrace, with a private bookable dining space and resident&rsquo;s lounge offering views over the Gold Coast.

[smartcode_project_cta: project_id=102451]

High-rise developments always offer a great opportunity to create more extensive amenity spaces than a low-rise development to service its higher density


Why the Yves, Mermaid Beach apartments, offer a rare opportunity in the exclusive suburb

Traditionally on the hunt for house-and-land, Perth&rsquo;s downsizers have been breaking new ground with a surge of interest in the high-rise market.

Sirona Capital have noticed the surge in buyer interest at their newest development 28 Lyall in South Perth, which they are developing in conjunction with Singapore-listed developer&nbsp;Chip Eng Seng.

They&#39;ve had commitments to almost half of their 98 apartments in the 37-level Bates Smart-designed tower, with construction soon to commence.

High-rise residences like this are filling a gap in the market, offering downsizers the best of both worlds, suggests&nbsp;Sirona&rsquo;s Managing Director, Matthew McNeilly.

[smartcode_project:default project_id=29229 project_image_fid=147623]

&ldquo;A lot of people in this market are finding that the perfect option to downsize is also an upgrade on the classic family home,&quot; McNeilly says.

&quot;28 Lyall&rsquo;s residences offer loads of space as well as the high-rise lifestyle features you&rsquo;d struggle to find in a house &ndash; starting with the views.&rdquo;

The near 100 sqm two-bedroom apartments are popular with downsizers, as are the 155 sqm three-bedroom apartments. They all feature engineered timber floorboards, kitchens fitted with European appliances, double glazed floor-to-ceiling windows and north-facing recessed balconies to take in the views.

[smartcode_project:default project_id=29229 project_image_fid=147626]

The most apartments located on each floor is four, with some levels homing just two or three apartments.

It&rsquo;s a deliberate choice which is part of the development&rsquo;s &lsquo;vertical village&rsquo; concept, says&nbsp;McNeilly.

&ldquo;Owner-occupiers like the fact that they&rsquo;ll know their neighbours &ndash; that&rsquo;s partly why we&rsquo;ve kept to a maximum of four residences per floor. They&rsquo;re designed as private, luxury homes with a lot of space, but they&rsquo;re still part of a tight-knit local neighbourhood.&rdquo;

[smartcode_project:default project_id=29229 project_image_fid=147616]

28 Lyall&#39;s location places it&nbsp;a five-minute walk from the Mends St Jetty and ferry service to Elizabeth Quay and the CBD.

The two-bedroom apartments start from $720,000

&ldquo;Downsizers are a savvy market and they know how property works &ndash; they want a spacious two-bedroom or three-bedroom place that feels like home but which is also going to be a good investment for the future,&rdquo; McNeilly added.

&ldquo;Premium high-rise residences like this are hugely appealing because they promise excellent growth. There&rsquo;s a lot of potential for those who take advantage of the window of opportunity with off-the-plan incentives.&rdquo;

Eligible purchasers have limited time remaining to secure government incentives on off-the-plan residences. This rebate for pre-construction contracts is 75% of the stamp duty paid for purchase, up to $50,000.

High-rise residences like this are filling a gap in the market, offering downsizers the best of both worlds, suggests Sirona’s managing director, Matthew McNeilly

Why downsizers are looking sky high in Perth

ckusher-ujnxiKuFQs

Significant slowdown in dwelling commencements this quarter: Cameron Kusher

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EXPERT OBSERVATION
Lenders are reluctant to lend and buyers don’t want to buy when it comes to high-rise developments.
That’s according to RiskWise Property Research’s latest analysis of the construction industry which has been hit hard over recent months following the high-profile cases of the Mascot and Opal towers in NSW.
With cracks in both the Sydney towers, fears more will become apparent in other buildings and the need to replace combustible cladding in thousands of buildings throughout Australia, demand for units had dropped dramatically.
Lenders are proceeding much more cautiously too, and this includes non-bank lenders whose business model is to provide alternative solutions from the ADIs, and generally have a less conservative assessment of risk.
Add to that the issue of oversupply in many Danger Zone areas and there is very real risk for developers.
We have a situation now where lenders aren’t eager to lend and buyers don’t want to buy but we still have developers who are considering developing high rise.
Units in the pipeline for the next 24 months Australia-wide equate to 7.6 per cent of current stock. In Sydney there are 58,094 units in the pipeline or (9.5%) of current stock and in Melbourne there are 59,634 units in the pipeline or (8.1%) of current stock.
However, in the last three months to June 2019, only 8 per cent of stock sold in Sydney and in Melbourne, 12 per cent.
The high-profile issues around cladding and defects had created enormous ‘reputational damage’ across the entire industry and because of this, investors had lost interest in high-rise unit developments and were turning to “safer” house-and-land packages suitable for families.
And Sydney’s Mascot and Opal towers are not the only ones that have been hit with negative media coverage with a cladding fire taking hold in the 43-storey Melbourne building, Neo200, in February. In July, a development in Sydney’s Zetland was also forced to shut its doors on residents for eight months after reports of water damage and faulty fire prevention.
According to Knight Frank's Australian Residential Development Review, in Greater Sydney the value of sales of development sites suitable for high-density projects halved in the 2019 financial year, while average site values in both Sydney and Melbourne fell dramatically.
If you combine the recent quality issues with financial losses from investment in high-rise units, this could amount to a permanent structural change in demand.
In some cases developers, instead of assessing the true needs of the market, have developed large numbers of units and have needed to find ways to shift stock by using instrastate or overseas markets with high commissions that are often factored into the property price. A prime example of this type of poor risk management is the oversupply in the Brisbane unit market, as detailed in our case study of 2018, which resulted in lower valuations, rising defaults on settlements, heavy discounting and incredible incentives such as new cars.
We already have significantly reduced levels of demand due to restrictions on foreign investors, credit restrictions, banks refusing to loan to self-managed super funds and local investors looking elsewhere.
Add to that the high level of unit oversupply and it’s possible to see how structural changes could occur in a sense that the overall demand for off-the-plan dwellings shifts from units to house-and-land packages. Medium-density dwellings, such as townhouses, particularly in popular areas also enjoy higher demand.
Some developers were already struggling to meet pre-sales and / or sales targets in areas where there were high levels of stock and many had not proceeded to commencement. In other instances, according to recent media reports, development defaults were on the increase and many developers, such as the high-profile Ralan Group, had collapsed or were on the brink of failure.
 Without demand from investors, and other buyers, you don't have pre-sales or sales and the entire development is at risk. Obviously, an event of default is never planned by the developer. However, developers need to carefully assess the risk that they are taking the risk, and they need to be in a strong financial position to deal with the potential consequences and not be forced to do a fire sale.
Developers needed to do greater risk management and assess whether there was genuine demand for their product.
Demand for existing and off-the-plan properties, mainly units, began to lower with the introduction of APRA’s lending restrictions in 2017 followed by greater scrutiny of home loan applications.
However, with the addition of construction defects and cladding issues, greater government legislation within the industry and oversupply, demand had dropped even further and was now “extremely low” putting developers at higher risk of default if they did not do their due diligence.
DORON PELEG is the CEO of RiskWise
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j.ballantyne1990-6AQqhLzZaK

High-rise units are a massive risk for developers: RiskWise's Doron Peleg

<html><body><div>
People's Choice Credit Union’s conservative policy of not lending to buyers of apartments in high-density developments more than six storeys high will prove right if there is a property market downturn, according to its chief executive.
Steve Laidlaw, CEO of Australia's second-largest credit union, said the ban on lending for high-density apartments had cost the group business in the boom times, but would ultimately be a big plus.
"There is a bigger credit risk when it comes to high-density apartment living," he said on Monday, The Australian Financial Review reported.
Laidlaw’s statement came during the results announcement. 
People's Choice Credit Union increased its home loan book by about 8 per cent to $6.3 billion in the 12 months ended June 30, 2017, with owner-occupier loans making up 81 per cent and investors 19 per cent. It has 47 branches. Loans to customers in Victoria make up about 9 per cent of the residential lending book.
The group’s net profit after tax slipped 7.98 per cent to $33.1 million for 2016-17, with net interest margins falling as customers shifted to lower rate package products in a highly competitive market. Laidlaw said net interest margins were expected to stabilise in 2017-18.
The credit union has been expanding in Victoria from its traditional base of South Australia and the Northern Territory. 
On the risks of a downturn, Laidlaw said that he didn't think there would be a short-term slide in the apartment market in Australia, but if a downturn did happen, it would likely start with the high-density apartment market."
"Our risks to that space are pretty well mitigated," he said. "We've always been pretty conservative."
However, he expects residential property prices to remain strong and isn't predicting a price slide. 
Laidlaw expects the next movement in official interest rates from the Reserve Bank of Australia to be up, but borrowers have plenty of breathing space. 
"I think the next move is up. We probably think around mid next year at this point in time," he said.
According to him, the RBA will only raise rates in small increments and that most home loan customers across the financial services industry had built in sufficient buffers in the loans to still be able to service them in a higher rate environment.
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Ban on loans for high rise apartments right choice, says credit union CEO  

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Skyscrapers have been mooted as the best method to alleviate economic and geographic pressure when building in cities, according to a new report.
<a href="https://www.knightfrank.com/resources/global-cities/global-cities-pdf/knight-frank-global-cities-skyscrapers-2015-report.pdf" target="_blank">The Global Cities: Skyscrapers 2015 Report</a>, released by Frank Knight, found the higher the building, the higher the rent tenants will pay.
Knight Frank’s Head of Office Agency for Australia, John Preece, said the development of 'premium towers' is also increasing.
“From a commercial perspective, landlords can charge higher rents for upper floors, which could support the commercial position for high-rise development," Mr Preece said. 
<a href="/images/2015/06/03/skyscraper.jpg" target="_blank"> Click to enlarge</a>
<img src="/images/2015/06/03/skyscraper.jpg" alt="">
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