National developer Fortis has received development approval for Crest &amp; Walker, its Newstead apartment development on Kyabra Street.

Construction by Binah is expected to commence on the 20-storey, Bureau^Proberts-designed building soon. There will be 65 two- and three-bedroom apartments on offer, starting at $1.8 million.

<a href="https://www.apartments.com.au/new-apartments/crest-walker-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> marks the fourth active development to be delivered by Fortis in Brisbane, following River House, now nearing completion, a residential project in New Farm, and a mixed-use development in Hamilton. Several additional projects remain in the pipeline as the development manager continues to grow its footprint across South-East Queensland.

&nbsp;

Dan Boman, General Manager – Development, Queensland, said the continued expansion in Brisbane projects managed by Fortis reflects the company’s commitment to design-led development and thoughtful placemaking.

“We’re proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such lifestyle destination as Newstead," Bonman says.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves."

Bonman believes Crest &amp; Walker will&nbsp;attract a discerning buyer who values design, thoughtful amenity and a lifestyle that captures the best of contemporary Brisbane.

"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."

&nbsp;

The building’s design features a contemporary brick podium softened by vertical greenery, creating a distinctive architectural expression within the Newstead streetscape. Positioned between Gasworks and James Street, the project sits within one of Brisbane’s most coveted lifestyle precincts, surrounded by dining, retail and cultural destinations.

A communal rooftop will feature a sun lounge and pool, BBQ facilities and a sauna, all set against panoramic views across Newstead and the Brisbane CBD.

Slaite Projects will handle the sales campaign, which will kick off in May.

[smartcode_project_cta:default project_id=145922]

Joel Robinson

Fortis to launch Crest & Walker, Newstead following development approval

Singaporean developer <a href="https://www.apartments.com.au/developers/centurion-global">Centurion</a> has unveiled plans for a major mixed-use redevelopment of the former John Martin &amp; Co warehouse building on Adelaide CBD's dress circle North Terrace.

The $300 million redevelopment will comprise three towers, rising behind and above the preserved 19th-century sandstone façade. The proposal would retain and integrate the heritage-listed structure while introducing a trio of contemporary towers that combine student accommodation, residential apartments, and commercial uses.

There will be apartments to purchase, as well as a 30-storey, purpose-built&nbsp;student accommodation tower, designed to respond to growing demand for dedicated student housing in Adelaide’s CBD.&nbsp;Ground and podium levels across the development are expected to host retail, food and beverage, and entertainment uses, helping to activate the street edge and create stronger pedestrian connections between North Terrace and the nearby Rundle Mall retail precinct.

A key element of the proposal is the preservation of the site’s historic sandstone building, constructed in 1867 and designed by prominent colonial architects Edmund Wright, Edward John Woods, and Edward Hamilton. The building originally operated as a warehouse for the well-known Adelaide department store John Martin &amp; Co before the retailer closed in 1998.

&nbsp;

The site sits opposite several of Adelaide’s most significant cultural institutions, including the Art Gallery of South Australia, the South Australian Museum, the State Library, and the university precinct. Its location places it within a corridor that connects the city’s cultural, education, and retail destinations.

It is the second redevelopment proposal on North Terrace in recent months, with Palumbo Group set to redevelop the heritage-listed former Royal Hotel which has laid vacant for over a decade.

They are planning 211 apartments across two towers, just over a kilometre from Centurion's project.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/sa/palumbo-group-to-redevelop-kent-town-pub-into-new-apartment-development">Palumbo Group to redevelop Kent Town pub into new apartment development</a>

Centurion plots $300m triple-tower redevelopment for heritage John Martin’s warehouse on Adelaide’s North Terrace

After laying vacant for over a decade, construction is set to begin on a major residential and mixed-use development at the heritage-listed former Royal Hotel in Kent Town.

The Royal Apartments development by South Australian developer Palumbo Group will deliver 211 new dwellings across two residential towers while preserving and restoring the iconic State Heritage-listed building at 2-8 North Terrace.

<img alt="Royal Hotel" data-entity-type="file" data-entity-uuid="d48b7805-a5b0-42b8-b6bd-64ed49dfb81d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-09%20at%209.15.56%E2%80%AFAM.png?VersionId=vtrtYAaCec5nYrYiNaivmC9d9nyHAXeQ" />

<a href="https://www.apartments.com.au/new-apartments/royal-apartments-2-8-north-terrace-adelaide-sa-5000">Royal Apartments</a> will consist of a 15-level Hills Tower and a 16-level City Tower on the doorstep of the Adelaide Park Lands.

The heritage Royal Hotel building, added to the State Heritage Register in 1986, will be retained and adaptively reused as part of the development.

The development will also include ground-level retail, communal open space including a swimming pool, bicycle parking, and 235 on-site car parks.

<img alt="Royal" data-entity-type="file" data-entity-uuid="c73b6752-a574-4e4a-927d-f36df076b61a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-09%20at%209.20.41%E2%80%AFAM.png?VersionId=EcIGi.Z0ijVPTDkq8jSEFd2pzfw6ryRN" />

Providing housing for key workers is central to this development, with 20 percent of dwellings set aside for doctors, nurses, police officers and other essential workers at a 25 percent reduction of rental costs.

The project is being delivered by South Australian family-owned developer the Palumbo Group, who have over seen several high-quality residential and commercial developments across Adelaide.

Palumbo Group to redevelop Kent Town pub into new apartment development

Southwark Grounds will transform into a fully serviced inner-city neighbourhood, with South Australian developer&nbsp;Commercial &amp; General&nbsp;selected as the master developer to transform two-thirds of the former West End Brewery site.

The State Government will partner with South Australian developer Commercial &amp; General to deliver more than 1,000 homes alongside a supermarket, a childcare centre, an aged care facility and a vibrant hospitality and retail precinct at Adelaide’s newest suburb.

Commercial &amp; General will work with Renewal SA on adaptive reuse of the historic Walkerville Brew Tower, which will anchor the precinct’s public space with hospitality and retail uses.

The newly announced homes, services and amenities form part of the broader 1,300‑home Southwark Grounds development, expanding on five apartment and townhouse projects on the western side of the site announced last year, which will deliver approximately 300 new homes close to services and public transport.

Local development group Commercial &amp; General are known for landmark projects across Adelaide including Eighty‑Eight O’Connell in North Adelaide and WEST at West Lakes.

<img alt="Full vision for Southwark’s transformation revealed" data-entity-type="file" data-entity-uuid="94a4827e-3a6d-4228-85d4-1f209ffd0a00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Southwark-Grounds-View-2-Artist-Impression.jpg?VersionId=UGDDpeG8RqUm46gmL9p2S3EhO9qUnlwO" />

Commercial &amp; General is now finalising partnerships with a selection of architects and consultants to progress detailed plans and product designs for the precinct. Built form will be delivered by Commercial &amp; General’s integrated building division, Tandem Building, with work expected to begin in 2027.&nbsp;It should take about a decade to deliver the precinct.

Early stages are anticipated to include significant apartment complexes, public parking and the redevelopment of the Walkerville Brew Tower.

Other key elements planned for delivery within the next five years include a vertical residential aged care facility and a purpose-built childcare centre, with a supermarket and supporting retail to follow soon after.

This large section of the precinct will deliver more than 1,000 homes across approximately a dozen apartment buildings, with opportunities for increased yield to be explored through increased height allowances enabled by the recently launched Southwark Grounds Code Amendment.

Commercial &amp; General will also deliver a dedicated 80-space short stay public car park to support anticipated visitor demand, in addition to parking provided within individual apartment developments.

More than 20 per cent of homes within the development area will be allocated to affordable sale or rental, meeting Renewal SA’s increased commitment to affordable housing across the precinct.

Apartment buildings will be framed by activated public thoroughfares and a series of new reserves to be delivered by Renewal SA across 2026 and 2027.

The public realm, which will comprise a minimum of 15 per cent of the overall precinct, will be anchored by a major civic space known as ‘Brewery Green’, connecting the Walkerville Brew Tower to the river.

A detailed masterplan of the precinct alongside product typologies are set to be released later this year.

The State Government has embarked on several strategic infill developments to deliver critical housing supply to South Australia at pace. The Government purchased the Port Road site from Lion Beer Wine &amp; Spirits Pty Ltd in 2023 after the closure of the brewery two years earlier and has since fast tracked the construction of the first homes, set for occupation by the end of this year.

Full vision for Southwark’s transformation revealed

Apartment developer FYVE is continuing to pad out its apartment pipeline.

Having filed an application for <a href="https://www.apartments.com.au/news/nsw/rose-bay-apartment-market-fires-up-with-200m-in-new-developments-filed">19 apartments on Dover Lane</a>, its first development in the eastern suburbs, <a href="https://www.apartments.com.au/developers/fyve">FYVE</a> is taking on another new market, this time in Northbridge, where it is planning 31 apartments on <a href="https://www.apartments.com.au/new-apartments/1-5-baringa-road-northbridge-nsw-2063">Baringa Road</a>.

<img alt="First Look: FYVE lodges plans for boutique 31-apartment project in Sydney’s Northbridge" data-entity-type="file" data-entity-uuid="a971e259-ed8e-4d08-9d3b-feacf3139684" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/1772685299976_11zon.jpg?VersionId=l1vSn6Hq1zRTHNONhD3l5rOIhlpN2G9L" />

The development, designed by&nbsp;<a href="https://www.apartments.com.au/architects/wmk-architecture">WMK Architecture</a>&nbsp;and located&nbsp;close to Northbridge Plaza and the suburb’s village centre, will span six levels above basement parking. Large balconies and terraces form a key component of the design, extending the living areas outward while maintaining connections to the surrounding landscape.

The building’s scale and articulation aim to respond to the established residential character of Northbridge while introducing contemporary architectural elements, according to the documents supplied to Willoughby Council.

&nbsp;

<img alt="First Look: FYVE lodges plans for boutique 31-apartment project in Sydney’s Northbridge" data-entity-type="file" data-entity-uuid="3502e584-a397-472f-81a2-298349b47a4b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/699c44c7039d7b9c10230b0b_Northbridge%20Option%201.png?VersionId=1U.uYIPBX7issSkMNgVen.MekKcFOLK0" />

FYVE Head of Strategy and Acquisition Aris Dimos said the Northbridge project reflects the company’s strategy of targeting tightly held locations suited to owner-occupiers.

“Following on from our recent Rose Bay acquisition, Northbridge represents a continuation of our strategy to secure well located opportunities in tightly held, established locations with strong owner-occupier appeal,” Dimos said.

“We look forward to bringing this project to life in one of the Lower North Shore’s most desirable addresses.”

&nbsp;

First Look: FYVE lodges plans for 31 apartments in Northbridge

Highrise

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It’s danger time for investors tempted to buy high-rise apartments on the Gold Coast. 
There are few entities more skilled in the art of seduction than the Gold Coast propaganda machine. 
What makes it doubly dangerous is that the Gold Coast can spin a pretty plausible story right now, as long as it ignores its appalling record on capital growth.
There’s the high level of spending on infrastructure. There’s the billions that corporations, both Australian and foreign, want to throw at casinos, resort hotels, cruise ship terminals and mega high-rise apartment blocks. There’s the marketing appeal of the 2018 Commonwealth Games.
Marketers can pull together some credible-sounding data which suggests that the oversupply of the past has been soaked up and that markets are growing again.
The marketing machine will have little trouble mounting a case that the market is beyond recovery and is rising rapidly. And there is no shortage of gun-for-hire companies purporting to be independent and willing to make a statistics-based case for the viability of all those new mega towers.
Last week a report claiming the Gold Coast will need another 133 apartment towers just to cope with the impending population boom got widespread media coverage. It’s amazing how readily media will take a piece of crystal-ball-gazing and turn it into fact for consumption by a gullible public. 
A bullish and self-serving forecast was converted into a statement that the population will jump 76% in the next 20 years. And “many of those people will need to be housed in high-rise apartments” and the population growth will “mean demand for 156,000 new dwellings to cope with the influx”.
I wonder how many investors will pause to consider the outcome if those predictions are wide of the mark. Population projections are never accurate. Even in the short periods between the official census counts, government and private sector population estimates are shown to be faulty, and sometimes wildly inaccurate.
Property investors are essentially herd animals and the impulse to follow the pack as it starts to stampede towards the latest Gold Coast mirage will be irresistible for many. The FOMO Syndrome will drive too many to pay too much for generic high-rise dwellings in an oversupplied market and spend the next five to ten years regretting it.
It’s all happened many times before on the Gold Coast. But investors seldom learn the lessons of history, in some cases because they are blissfully ignorant of it.
They need to know that the Gold Coast has not yet fully emerged from the most recent glut of high-rise apartments, one that has taken six years to absorb. In that time property values have gone backwards in all the major high-rise suburbs – and are still in reverse.
Two major research sources – Australian Property Monitors and the Real Estate Institute of Queensland – confirm that the median prices for apartments Surfers Paradise, Main Beach, Broadbeach and Southport remain significantly lower than they were five years ago.
And prices are still falling. In the past 12 months, prices have fallen further in Surfers Paradise (down 2.9%), Main Beach (down 4.1%) and Southport (down 4.3%). 
In the cases of both Surfers Paradise and Broadbeach, apartments are worth less today than they were in 2005. For both Main Beach and Southport, prices are still at the same levels as 10 years ago. The investors who bought in these locations a decade ago have had no capital growth at all. How many markets can you say that about?
In Surfers Paradise, prices fell in the past three months, the past 12 months ago, the past three years, the past five years and the past 10 years. Not a single growth figure to be found. Of all the big-name markets around Australia, perhaps only Noosa on the Sunshine Coast is a bigger dud. 
Those who bought in the Gold Coast high-rise markets five years ago have lost a lot of money. In Main Beach, the median unit price has dropped from $652,000 in 2010 to $561,000 today. The average punter is $91,000 worse off. There are similar results for Surfers Paradise, Broadbeach and Southport.
And it’s all about to happen all over again. Only this time, the outcomes will be worse, because the towers being built are larger and more numerous.
For investors who are susceptible to a strong marketing pitch, it’s time to be afraid, be very afraid.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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terryryder-YECXbqmri2

Beware the Gold Coast propaganda machine: Terry Ryder

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GUEST OBSERVATION
Implosion is the most dramatic way of demolishing a building but it’s also the most wasteful and hazardous.
We are entering a new world where skyscrapers and other huge buildings are becoming redundant and need significant overhaul or replacement. The process is called unbuilding or, if you’re a bit highfalutin, deconstruction.
These so-called <a href="https://www.theage.com.au/national/victoria/spreadsheets-in-the-sky-are-putting-melbourne-s-liveability-at-risk-20191203-p53gek" target="_blank">spreadsheet towers</a> populate every major city. They signalled modernity and provided huge profits for those who built them. But these buildings are <a href="/news">profligate users of fuels</a> for light, power and services.
Most developed world cities started building skyscrapers after the second world war. These buildings were <a href="https://www.britannica.com/art/International-Style-architecture" target="_blank">International Style</a> architecture, unrecognisable is terms of a particular locale, universal in terms of their ubiquitous metal, concrete, glass – and fully air-conditioned. Now they are ageing, their use-by date is up and their balance sheet profitability no longer attracts.
The challenges of demolition and reuse
The question is: how do we safely dismantle these high-rise structures, which are generally located in busy cities?
Reminders of the dangers of explosive demolition are tragedies such as the <a href="https://www.canberratimes.com.au/story/6030620/katie-benders-family-commemorate-20-years-since-royal-canberra-hospital-implosion/" target="_blank">death of 12-year-old Katie Bender</a>. She was struck by flying debris when the Royal Canberra Hospital was razed in 1997 to make way for the new National Museum of Australia.
A recent demolition, and the <a href="https://www.archdaily.com/889563/soms-iconic-270-park-avenue-at-risk-of-becoming-the-largest-building-ever-to-be-demolished">tallest ever to be unbuilt</a>, is 270 Park Avenue, New York City (pictured). Its 52 floors were built in 1960 for the Union Carbide chemical company. The building was for 50 years the tallest ever designed by a female architect (Natalie de Bios of Skidmore, Owings and Merrill. Is that another low hit for gender equality?) Its replacement by architects Norman Foster will be <a href="/news">twice as high</a>.
The business of disassembling these skyscrapers is just now developing, but it will gain pace as more become obsolete.
Some still get imploded, but usually, in a busy city, demolition techniques must be unobtrusive, as quiet and clean as possible. The <a href="https://www.propertyobserver.com.au/https://us.macmillan.com/books/9780865476752">techniques used for cleaning up the World Trade Centre</a> testify to the wastefulness of a more destructive approach.
So how best to demolish a high-rise building?
Plenty of <a href="https://www.nytimes.com/2013/06/18/science/tricky-ways-to-pull-down-a-skyscraper">clever techniques to demolish</a> exist. Some start at the base and work up, others in reverse.
The 40-storey Akasaka Prince Hotel in Tokyo was slowly <a href="https://www.scmp.com/news/asia/article/1160452/eco-friendly-japanese-demolition-scheme-slashes-dust-and-noise">demolished in 2012-13</a> using a technique where a cap was built on top of the building. It was stripped floor by floor as the cap was lowered, so all the dust, mess and debris was contained and removed with no effect on the environment.
Buildings are wrapped in scaffold and protective fabric then literally dismantled in the reverse order to which they were built. In the process building waste can be recycled and reused rather than dumped.
Reverse building involves removing the glass, then the frames, taking off the wall cladding, then scraping away at the concrete and steel frames bit by bit. Concrete is removed to expose the steel reinforcing bars, which are then separately removed and recycled. In the process unwanted material can be uncovered, like asbestos, which needs particular care in handling.
Interiors are unbuilt the same way – remove floor coverings, cupboards, doors and lightweight walls, strip the electrical wiring and pipes, take out air conditioning and lifts, remove stairs and escalators.
These removalists act smartly, as materials and fabric are recycled and often reused for another building. It is a sustainable way of dealing with the issue. Things that might normally have been reduced to dust and mud by destruction are instead usefully salvaged and recovered for an extended life cycle.
As part of the benefits of this procedure, unbuilding provides <a href="https://www.huduser.gov/Publications/PDF/deconstruct.pdf">large numbers of construction jobs and associated employment</a> in transportation, waste management and recycling.
It also provides new construction sites. This means cities need not expand beyond existing boundaries and the infrastructure of services, roads and public transport need not be extended.
Building with an eye to unbuilding
What has interested those involved with this work is the capacity of building designers (let’s call them architects) to creatively improve their buildings in terms of life after use-by date. Techniques are being developed that assist in unbuilding and salvaging materials, even down to basic principles such as ease of access to pipes and wires, modular components and simplified connection practices.
The logic is that clarity of building structure and services makes retrieval simpler. Less complexity of materials and components means a building can be untangled more efficiently.
Fastening devices can be simplified and mechanical (rather than using glues and sealants), toxic materials avoided, materials selected with an afterlife in mind and structures designed for simplicity and accessibility. Also important is a clear set of as-built documents that map the original building so it can be disassembled.
Clear design thinking will have value for unbuilding and recycling in the future.
Making construction more sustainable
The construction industry is a main consumer of fuels, timber, steel and other metals, concrete and plastics. That demand drives the logging of forests, mining and extraction, leading to material production and transport that contributes to emissions and pollution.
The UK Green Building Council <a href="https://www.ukgbc.org/climate-change/">estimates</a> the construction industry generates about 22% of UK carbon emissions, uses 40% of drinking water, contributes 50% to climate change and over half our landfill waste, and accounts for 39% of global energy use. The US Environmental Protection Agency (EPA) also <a href="https://archive.epa.gov/greenbuilding/web/pdf/gbstats.pdf">reports</a> that the industry contributes to asthma and lung cancer by producing radon via contaminated applied finishes (paint).
Driving the need for much greater reuse of old building materials is an awareness of the fragility of our resources and the energy we use to consume them.<img src="https://counter.theconversation.com/content/129002/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/norman-day-228477">Norman Day</a>, Lecturer in Architecture, Practice and Design, <a href="http://theconversation.com/institutions/swinburne-university-of-technology-767">Swinburne University of Technology</a>
This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/unbuilding-cities-as-high-rises-reach-their-use-by-date-129002">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

Unbuilding cities as high-rises reach their use-by date: Norman Day

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The Australian Bureau of Statistics (ABS) recently released the quarterly building activity data for December 2018.
The release is a treasure-trove of data and includes information on dwelling commencements, dwelling completions, dwellings under construction and dwellings approved for construction but not commenced.
This release has published very valuable data on the number of units commenced by the number of storeys.
<a href="https://www.propertyobserver.com.au/images/2019/4/19/Blog_001.png" target="_blank">Click here</a> to enlarge:
<img src="https://www.urban.com.au/images/2019/4/19/Blog_001.png" alt=""> 
Source: CoreLogic, ABS
In terms of dwelling commencements, there was a significant slowdown over the quarter. In fact, house starts fell 7.6% over the quarter to their lowest level (27,088) since March 2017.
Unit commencements recorded a much larger -26.8% decline to 19,134 commencements, the fewest over a quarter since September 2013 and the largest quarterly decline in commencements since September 1974 when they fell -32.5%.
Despite the falls, both house and unit commencements remain above their long-term average.
<a href="https://www.propertyobserver.com.au/images/2019/4/19/Blog_002.png" target="_blank">Click here</a> to enlarge:
<img src="https://www.urban.com.au/images/2019/4/19/Blog_002.png" alt=""> 
Source: CoreLogic, ABS
The most notable change in the landscape of dwelling commencements over recent years has been the lift in apartment starts and more recently their fall.
The increase in higher density construction has primarily been driven by the three most populous states, or more specifically, the capital cities of each of those states.
Over the past five years, every state and territory has seen unit commencements reach historic high levels, demonstrating a clear shift towards higher density development (that isn’t to say that detached housing construction hasn’t also climbed significantly over the period).
More recently, as the housing market has turned and values have started to fall we can see there is a reduced preparedness of developers to commence new projects.
We would expect that commencements, particularly for units, are likely to continue to trend lower over the coming quarters as housing values continue to record value falls, finance remains tight, and both domestic and foreign investors remain light on the ground.
<a href="https://www.propertyobserver.com.au/images/2019/4/19/Blog_003.png" target="_blank">Click here </a>to enlarge:
<img src="https://www.urban.com.au/images/2019/4/19/Blog_003.png" alt=""> 
Source: CoreLogic, ABS
In the latest building activity release the ABS published a further breakdown of annual unit commencements by the height of the building.
While the number of commencements has climbed significantly over recent years, it is interesting to note that commencements of units in a one to three storey block has been relatively steady.
Anecdotally, the demand/supply ratio of medium density dwellings remains much healthier relative to high density products.
Conversely, there has been significant increases in commencements of taller buildings over recent years with commencements now beginning to ease.
This reflects both the unit construction boom and also the fact that as the cost of acquiring sites has increased developers have sought approvals for taller buildings in an effort to maximise their yield and to recoup acquisition costs and maximise profits.
With dwelling commencements expected to continue to fall, the decline doesn’t negate the fact that many developers have paid high prices to acquire sites.
As a result we would expect that despite an expectation of fewer commencements going forward, those projects that do commence will largely be taller apartment projects.
Notwithstanding that expectation, larger projects are generally riskier for the developer and achieving sufficient presales to commence a project is more of a challenge when there are more units to sell.
In order to maintain profitability of projects it is highly likely that as values continue to decline that dwelling commencements will continue to fall.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/taxonomy/corelogic-people/cameron-kusher" target="_blank">CoreLogic website</a>.
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ckusher-ujnxiKuFQs

The increasing prevalence of highrise construction: Cameron Kusher

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EXPERT OBSERVATION
Dwelling approvals jumped 19.1% in Feb driven by a big spike in high rise approvals.
The spike is almost certainly a one-off making the headline result a misleading 'rogue'. Indeed, approvals ex high rise look to have been significantly weaker than expected. The consensus forecast going into the release was for total approvals to decline 1.8%. Approvals ex high rise instead look to have fallen 3.4%.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/4/5/New%20Project%202.jpg" alt="">
The detail showed a 3.6% fall in detached house approvals in the month, the 3 month rolling average down 4% on Nov and 10.9%yr, the significant deterioration since mid 2018 clearly carrying into early 2019. Around units, our estimates suggest 'high rise' approvals jumped 135% in the month, led by spectacular rises in NSW (+130% month) and Vic (+213%) the latter coming from an extreme low in Jan.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/4/5/New%20Project%203.jpg" alt="">
The fact that both states recorded big gains indicates the spike is not due to just a single project. However, the gain comes very much against the run of play for housing and this specific segment and runs counter to the evidence we have around site purchases. As such it is almost certainly a 'rogye' result. Medium density units were down about 2.4% in the month.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/4/5/New%20Project%204.jpg" alt="">
The high rise spike dominated the state breakdown, with big gains in NSW and Vic. Ex high rise, approvals look to have been particularly weak in NSW with apparent declines in Vic and WA as well but a solid gain in Qld. All major states are seeing significant declines in non high rise approvals – on a rolling 3mth basis, NSW is down 14.5%yr, Vic is down 12.6%yr, Qld is down 22%yr and WA is down 13.2%yr.
The total value of renovation approvals rose 4.4%mth to be up 3.6% on a rolling 3mth average basis, with a decent uptrend in place. The state detail shows solid gains coming through in Qld and WA but a less convincing uptrend in NSW and Vic.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/4/5/New%20Project%205.jpg" alt="">
The total value of non res building approvals rose 2.1%mth but is still down 8%yr on a rolling 3mth basis. Abstracting from monthly volatility, which is never that easy for this segment, the last few months has shown some lift in offices and steady reads for retail, warehouses and industrial approvals but softer reads for hotels, education, health and other social sectors.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/4/5/New%20Project%206.jpg" alt="">
Overall the monthly rise in total dwelling approvals should clearly be ignored – Australia's high rise building boom is not about to reignite any time soon, with the key takeaway instead the more disappointing momentum evident in non high rise approvals.
Other housing market indicators have hinted at some stabilisation in conditions in recent weeks, although the evidence remains only tentative. The flow through to new construction could be much slower given funding difficulties and the substantial increases in new supply coming through.
MATTHEW HASSAN is a Senior Economist for Westpac
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Dwelling approvals spike is a rogue one: Westpac's Matthew Hassan

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<div class="column">Dwelling approvals dropped 8.7 percent in Sep, larger than the market expectation of a 3 percent fall but within the range of ‘normal’ volatility for month to month reads.</div>
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<div class="column">The detail shows a sharp 16.3 percent drop in units was the main driver in the month – with-in this segment the ‘usual culprit’ when there is volatility - high rise approvals – was down just over 20 percent in the month but down only slightly on a year ago, reflecting the high starting point following a big surge in July. Even with a dip last month, August was the fourth highest reading on record.</div>
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<div class="column">Outside of ‘high rise’ the monthly moves were mixed but mostly hint at an underlying trend softening. Private sector house approvals were up 2.3% but ‘mid-rise’ were down over 10 percent. The combined picture from ‘non high rise’ approvals now show a trend decline for six consecutive months tracking at a 10-15 percent annual pace. The state detail shows this coming through across all the main states – a more convincing though still tentative sign of a broad underlying slowdown.</div>
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 The signal from ‘high rise’ remains much less conclusive – despite the latest monthly drop it is unclear whether the segment is levelling out or turning down with approvals uneven across the major states as well (up strongly on a year ago for NSW but lacking a clear direction in Vic and Qld).</div>
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 The value of renovation approvals declined 2.2 percent to be down 10.6 percent/yr, pointing to a clear softening heading into year end after strong gains in the first half of 2016.</div>
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 The value of non res building approvals spiked sharply in Sep (+119 percent!). The gain came from a mix of retail, office, hotels and entertainment &amp; recreation buildings – the breadth of the gain a promising sign that it may not be just a 'one-off'. State-wise, all of the gain is coming from NSW and Vic.</div>
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 Overall, the update provides more tentative evidence of an underlying slowdown in non high rise dwelling approvals but the picture on high rise remains very uncertain. The mix still looks relatively constructive for new dwelling construction in 2017 – when the continued ramp up in apartment work looks set to more than offset the slowdown in other segments. The near term path of high rise approvals is more critical for activity in 2018.</div>
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<div class="column">The September pull back in this segments falls well short of a decisive signal – it would take similar-sized moves in the next few months to signal the sort of 'break out' weakening that would indicate a sharp wind down in high rise activity is on the way. </div>
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<div class="column">Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</div>
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High rise approvals drop after July surge: Matthew Hassan

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A charge of $900 per dwelling for new Hoddle Grid residential towers has been passed unanimously by the Melbourne City Council as they look to fund necessary infrastructure for an expected population surge.
The charge is to create a $26.5 million fund for public infrastructure needed for the expected 14,200 new residents by 2031.
However, it’s less certain who will be footing the bill.
While they are more officially called ‘developer contributions’ Fairfax Media reported that Melbourne lord mayor Robert Doyle said it is a charge that will be simply passed straight on to the purchasers of the residential units.
The levy will be regardless of when applications were lodged and will come into existence from next month.
With 25,210 residents, according to Robyn Hellman, actring manager strategic planning in the Report to the Future Melbourne (Planning) Committee, the area is rapidly growing with 9,547 new dwellings expected in 2031. This required 3,792 square metres of new community infrastructure.
The report notes that a $900 levy would be a “modest impost” on development, and in conjunction with the proposed open space contribution it would total $3,800 on a $500,000 apartment, or 0.76% of the value.
It notes that this is comparable with Central Sydney’s 1% levies. Brisbane has similar levies and in Victoria the City of Moreland collects an average of $800 per dwelling, while the City of Darebin collects an average of $851 per dwelling.
The maximum under the Act for this levy is $900, though it’s noted that to reach the infrastructure contribution it would likely need to be $1,659.12.
Another 5,260 apartments are currently under consideration for approval, and are likely subject to the levy.
From 1 July 2015, the state government is looking to introduce a standard infrastructure levy of $4,500 per dwelling.
“However the mechanisms for its application have not been defined. While the Hoddle Grid appears to fit the criteria for an SDA, this has not yet been determined by the State Government,” the report notes.
The report also suggests strongly considering the Hoddle Grid as a State Development Area.
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