Joel Robinson

Sydney's top 15 new apartments developments set to launch in 2026

<p>Developer-builder <a href="https://www.apartments.com.au/developers/dasco-australia">DASCO</a> has pushed beyond the now-standard inclusions of rooftop pools and landscaped podiums at its recently launched new Epping project, Senso.</p>

<p>It has laid out over 4,000 sqm of resident-only amenity in a move designed to compete directly with low-density housing on livability, not just density. The result is a development that supports genuine daily use through purposeful spaces distributed across its five-building, 479-apartment precinct.</p>

<p>[smartcode_project:default project_id=134954 project_image_fid=4396]</p>

<p>Two rooftop pools form the anchor of Senso. One is a 27-metre lap pool adjoining a heated spa, designed for everyday fitness rather than just summer leisure. The second sits on a lower podium, allowing different buildings to share in vertical access and reducing crowding during peak times.</p>

<p>It is the secondary spaces that start to distinguish Senso from other large-scale suburban projects. A rooftop cinema is integrated into a landscaped terrace, offering open-air screenings with natural ventilation and passive cooling.&nbsp;</p>

<p>The inclusion of a “sensory walk”, an elevated boardwalk that threads through the site, suggests a rare investment in non-commercial, non-essential amenity: space for quiet movement that doesn’t double as access or traffic circulation.</p>

<p>[smartcode_project:default project_id=134954 project_image_fid=4402]</p>

<p>The gym and wellness centre, often relegated to a small ground-floor room in many builds, takes on more substance here. Residents have access to a fully equipped gym, as well as outdoor yoga areas and meditative zones that integrate greenery and natural light.&nbsp;</p>

<p>The Club Lounge is similarly designed to support multiple use cases, with a private dining terrace, kitchenette, workspace, and lockable wine storage. These aren’t superficial additions; their scale and spatial allocation indicate serious intent for frequent resident use.</p>

<p>[smartcode_project:default project_id=134954 project_image_fid=4391]</p>

<p>Importantly, Senso’s amenities are embedded within a site that spans more than 10,000 sqm, allowing for better separation between spaces and reduced noise spillover, a critical but often overlooked factor in high-density developments. This spatial generosity also enables multiple alfresco kitchens and communal terraces without compromising individual privacy or usable space.</p>

<p>While many developments make claims about lifestyle, few back it with this level of built infrastructure. Senso’s mix of dedicated fitness, wellness, social and passive green spaces suggests a conscious response to the post-pandemic shift in housing expectations, especially among owner-occupiers.&nbsp;</p>

<p>DASCO is one of several leading developers who have taken out Resilience Insurance's Latent Defects Insurance policy, providing buyers with a 10-year structural and waterproofing warranty, and giving them the ultimate peace of mind.</p>

<p>Senso is scheduled for completion in late 2028.</p>

<p>[smartcode_project_cta:default project_id=134954]</p>


Staff Writer

The outdoor amenities elevating life at Senso, Epping

<p>Following the proposal by the Minns Labor Government to rezone Parramatta Road to create up to 8,000 new homes, prominent developer Ceerose has gone to the NSW Gov to increase the density of its new mixed-use residential building in Leichhardt.</p>

<p><a href="https://www.apartments.com.au/builders/ceerose">Ceerose</a>, founded by Edward Doueihi nearly three decades ago, has filed plans for 154 apartments above ground-floor retail at 307-315 Parramatta Road, a key corner site near Norton Street, the main high street strip in Leichhardt.</p>

<p>It's an upsize from the previously approved scheme of 63 apartments across a seven-storey building.</p>

<p><img alt="Ceerose" data-entity-type="file" data-entity-uuid="ba1ae75b-5f08-43fb-b8d5-3de6d9f6ef71" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-04%20at%2010.31.39%E2%80%AFAM.png?VersionId=yA3hBBLPH4ev7MsAE0_hieXeqiFqBUb7" /></p>

<p>The project is being advanced through the State Significant Development (SSD) pathway, with concurrent rezoning sought to facilitate the proposal. The 10-storey development would rise over a four-level basement and deliver two retail tenancies, one a larger-format offering and the other a smaller “hole in the wall” space, addressing the Parramatta Road frontage. 21 of the apartments are dedicated as affordable housing.</p>

<p>According to the Urban Design Report by Architecture AND, the scheme includes a podium and tower configuration, with a fine-grain, two-storey parapet street wall that references the traditional shopfront rhythm along the corridor. “An elegant tower form is proposed, combined with a characterful two storey frontage... articulating it as two related buildings, providing consistency with the rhythm and grain of Parramatta Road,” the report notes.</p>

<p>The residential component is split across two slender towers set back from the street edge, a design move aimed at preserving solar access and reducing perceived bulk. This massing strategy also seeks to improve residential amenity by focusing scale toward the quieter northern interface, away from Parramatta Road’s noise and pollution.</p>

<p><img alt="Ceerose" data-entity-type="file" data-entity-uuid="347f2f8f-5d36-4388-b40a-2e77380b9c19" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-04%20at%2010.31.02%E2%80%AFAM.png?VersionId=xvyUE2ujT1lzivXTo.mHBJFF4SmfgLtz" /></p>

<p>Architecture AND has worked with Ceerose on previous Inner West projects, and cites a deep familiarity with the local character. Their design draws heavily on context, heritage, and sunlight access considerations, and engages with the Inner West Council’s “Our Fairer Future” strategic planning framework.</p>

<p>The site spans 2,712 sqm and is located near key intersections with Catherine Street, Hay Street, and Redmond Street. It adjoins a public carpark to the north and is within walking distance of Stanmore and Petersham stations. It is also flagged in state and local planning strategies, including the Parramatta Road Corridor Urban Transformation Strategy, as a suitable candidate for increased density.</p>

<p>Ceerose recently completed The Alex Collective on McEvoy Street in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay.</p>

<p>The Parramatta Road corridor is coming to life with the proposed rezoning which is serviced by a significant number of bus, light rail and train routes.</p>

<p>Deicorp is progressing with its $1.8 billion <a href="https://www.apartments.com.au/new-apartments/kings-bay-village-five-dock-53-75-queens-road-five-dock-nsw-2046">Kings Bay Village</a> precinct on Parramatta Road in Five Dock, as is <a href="https://www.apartments.com.au/news/nsw/toga-to-push-on-with-five-dock-mixed-use-masterplan">TOGA further down the street</a>. Those two projects alone will bring nearly 2,000 new homes to Parramatta Road.</p>


First look: Ceerose plots mixed-use Leichhardt development on Parramatta Road

<p>North Sydney's landmark 'SBS Building' on Alfred Street is set to be demolished to make way for a new mixed-use residential tower in the booming North Sydney.</p>

<p>Commercial property group FiveX is behind the plans for a <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">39-storey tower</a>, the latest project to advance under the NSW Government’s Housing Delivery Authority pathway.</p>

<p>They are proposing 184 apartments above retail spaces, which will replace the existing 20-storey commercial building. FiveX was set up more than five decades ago by Joshua and Marko Berger. It is currently led by Joshua's son Lesli.&nbsp;</p>

<p><img alt="First look: Fivex plans 39-storey residential tower at 275 Alfred Street, North Sydney" data-entity-type="file" data-entity-uuid="2efa0980-53fa-4cca-9f9e-9c3c845d4746" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29%20%281%29_0.png?VersionId=y_YyPMq3NQLfYRs84pP4os9UgWiMLp75" /></p>

<p>According to the Architectural Design Report by <a href="https://www.apartments.com.au/architects/fjc-studio">FJC Studio</a>, the slender tower form has been deliberately designed to respect the site's transitional setting at the southern gateway to the North Sydney CBD, where high-rise towers give way to lower-scale residential precincts.</p>

<p>"The slender tower form and articulated podium establish a respectful relationship with nearby heritage and low rise buildings, including the Whaling Road Heritage Conservation Area,” the architecture firm noted, adding that the tower “completes a missing link in the urban fabric” while enhancing the Alfred Street streetscape.</p>

<p>The proposed building will include a mix of one-, two- and three-bedroom apartments, with 15 percent of the gross residential floor area allocated as affordable housing. There is an agreement already in place that those apartments will be managed by Evolve Housing.</p>

<p>The project aligns with broader state housing objectives, including the National Housing Accord target of delivering 1.2 million new homes by 2029. The Scoping Report filed with the State Significant Development Application (SSDA) suggests the site "presents no impediments to rapid delivery,” with construction able to commence within 12 months of receiving consent.</p>

<p>North Sydney has been one of the most popular suburbs in Sydney for new and off the plan apartment development, but hasn't had the supply to keep up with demand, until recently.</p>

<p>AURA by Aqualand was, for a long time, the only off the plan apartment building on the market. That completed last year, and has sold the majority of its 386 luxury apartments. Recently ALAND launched <a href="https://www.apartments.com.au/new-apartments/the-walden-173-179-walker-street-north-sydney-nsw-2060">The Walden</a> on the same street, selling over $100 million within just a few hours of its launch, while developer CASA also launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/the-mclaren-north-sydney-45-mclaren-street-north-sydney-nsw-2060">The McLaren</a>&nbsp;in the same precinct.</p>


First look: Fivex plans 39-storey residential tower in booming North Sydney

<p>Kokoda Property Group has announced the Sydney-based Versatile Construction as the builder for its landmark $1.5 billion <a href="https://www.apartments.com.au/new-apartments/teneriffe-banks-17-27-skyring-terrace-teneriffe-qld-4005">Teneriffe Banks</a> precinct.</p>

<p>Construction of the 17,612 sqm site is scheduled to commence in December 2025 and is expected to be delivered in stages from 2028. Once complete, <a href="https://www.apartments.com.au/new-apartments/teneriffe-banks-17-27-skyring-terrace-teneriffe-qld-4005">Teneriffe Banks</a> will comprise 212 residences across four architecturally distinct buildings, alongside Brisbane’s first Kimpton Hotel, extensive retail, hospitality, and wellness amenities.</p>

<p>[smartcode_project:default project_id=139896 project_image_fid=295098]</p>

<p>Kokoda Property Group Founder and Managing Director, Mark Stevens, said appointing Versatile Construction marks a significant milestone for <a href="https://www.apartments.com.au/new-apartments/teneriffe-banks-17-27-skyring-terrace-teneriffe-qld-4005">Teneriffe Banks</a>.</p>

<p>“Partnering with Versatile Construction gives us confidence in delivering a precinct that sets a new benchmark for luxury living, curated experiences and vibrant riverfront activation," Stevens said.</p>

<p>"Together, we will bring the vision for <a href="https://www.apartments.com.au/new-apartments/teneriffe-banks-17-27-skyring-terrace-teneriffe-qld-4005">Teneriffe Banks</a> to life, creating a destination that residents and visitors will enjoy for generations."</p>

<p>Throughout the construction phase, more than 2,000 jobs will be created, supporting hundreds of local contractors and suppliers.</p>

<p>[smartcode_project:default project_id=139896 project_image_fid=352274]</p>

<p>Marco Fahd, Chairman &amp; CEO at Versatile Group, said the company is looking forward to&nbsp;expanding their footprint in the state, taking on their inaugural project in Brisbane.</p>

<p>"We are proud of the unwavering commitment our team of experts have to quality and certainty in delivery and are excited to work with Kokoda to bring their vision for this unique project to life," Fahd says.</p>

<p>Sales reached $285 million on the launch of <a href="https://www.apartments.com.au/new-apartments/teneriffe-banks-17-27-skyring-terrace-teneriffe-qld-4005">Teneriffe Banks</a>, with sales momentum continuing to "exceed all expectations."</p>

<p>Stevens says the overwhelming response from buyers validated the group’s vision for <a href="https://www.apartments.com.au/new-apartments/teneriffe-banks-17-27-skyring-terrace-teneriffe-qld-4005">Teneriffe Banks</a>.</p>

<p>“The demand for a luxury product in this enclave has been extraordinary, we’ve never seen anything like it before. It reinforces everything we’re doing around quality, design, and creating genuine lifestyle precincts. Buyers are recognising the enduring value of Brisbane’s riverfront and are responding to the opportunity to live within a world-class destination that celebrates both place and lifestyle.”</p>

<p>[smartcode_project_cta:default project_id=139896]</p>


Kokoda appoints builder for $1.5 billion Teneriffe Banks waterfront precinct

Low Commissions

<html><body>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_1">Losses at online estate agent Purplebricks have almost doubled with the UK based firm confirming plans to exit the US market after its previously announced exit from Australia.</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_1">It revealed in total, its operating losses in the key US and Australian markets were £52.9 million (A$93m).</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_2">"We have taken the difficult decisions to exit our businesses in both Australia and the US as it is very important that we now focus our resources on the UK and Canada, where we have a strong established presence and where there are significant opportunities to grow market share and deliver profitable growth for shareholders," Purplebricks boss Vic Darvey said.</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">"Both exits will be conducted in an orderly manner with the expectation they will be completed by the end of 2019."</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">It made a FY19 operating loss of £18.8 million (A$34m) in Australia.</p>
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<p><span>Purplebricks shareholders were updated today on the cost of its venture into Australia that facing "increasingly difficult market conditions as the year progressed, we changed the management team and business model."</span></p>
<p><span>"The board concluded that the prospective returns from Australia were no longer sufficient to justify continued investment and took the decision to exit the market in May 2019."</span></p>
<p><span>It has <a href="/news/purplebricks-australian-property-listings-shrink-to-just-800-homes-for-sale">fewer than 800 listings remaining in Australia</a>, down on the 4500 instructions received in FY2018.</span></p>
<p><span>A focused, results-orientated team are on the ground implementing its exit strategy, which is based around an orderly process where we stand by our key obligations and help customers successfully sell their properties.</span></p>
<p><span>With the decision to close its Australian business, it expects total losses and closure costs of between £6 million to £8 million in FY 2020.</span></p>
</div>
</div>
</div>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3"><span>The company noted d</span>uring the two and a half years that Purplebricks operated in Australia, "market conditions became increasingly challenging."</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">"Despite changes to the business model and the continued hard work and dedication of the team there, we failed to gain the scale needed to succeed.</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">"Given the market outlook, and size of the ultimate opportunity, the board took the decision in May 2019 to run down and close the business, which will be completed by 31 December 2019.</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">"A reduced team is in place to ensure a professional wind down of the business and to ensure we continue to deliver great outcomes for our remaining customers.</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">"Having launched in the US in September 2017, we expanded rapidly into a total of seven states within a year.</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">"Each state required a significant investment in marketing to underpin the brand.</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">"Having not seen the revenue growth we had expected, in early May 2019 we put the US business under strategic review, to examine the feasibility of delivering growth in a more effective and cost-efficient manner.</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">"Having reviewed a number of alternative business models, the outcome of the strategic review was that while there remains a significant opportunity to disrupt the US market, it would take substantially more management time and resources than the Company is able to commit at this time.</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">"Therefore, a decision was taken to withdraw from the US and either sell or close the business."</p>
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<p><span>Investment in building its brand in the US and establishing the Australian business led to a group operating loss of £52.3 million (FY 2018 loss: £27.8 million).</span></p>
<p><span>The business is supported by a robust balance sheet with a strong cash position, it advised.</span></p>
</div>
</div>
</div>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">Its mission was to be "THE WORLD'S MOST INNOVATIVE, CARING AND MODERN REAL ESTATE AGENCY THAT HAS OUR PEOPLE AND OUR CUSTOMERS AT THE VERY HEART OF EVERYTHING WE DO. TOGETHER WE WILL NEVER STOP LEARNING, CHANGING AND WINNING."</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">It hopes to get to 10 percent of market share in the UK and 12 percent in Canada.</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">The Australian and US startups had been "incredibly distracting," Darvey told a results presentation.</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">"I don't think we will ever move to no-sale, no-fee. The upfront fee brings to us a motivated seller," he said, while acknowledging the agency would continue to evolve its pricing model.</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3"> </p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">The presentation noted UK commission rates were coming down, although this was only in certain pockets, and no figure was offered.</p>
<p data-reactid=".gcmpa2e71i.3.0.0.1.0.$lx-commentary.$lx-commentary.2.0.1.1:$post-5d1c490e70e6370671911fc6.0.3.0.0:$post_3">Rentals provide just 10 percent of the business.</p>
<p>Founded in 2012 by Michael Bruce and Kenny Bruce, it débuted on London's Alternative Investment Market (AIM) in December 2015.</p>
<p>In August 2016 <a href="/expert-insights/investing/purplebricks-arrives-in-sydney">it launched in Australia</a> and in September 2017 Purplebricks was launched in the US.<sup id="cite_ref-10" class="reference"><br></sup></p>
<p>In 2018, the company purchased DuProprio, a Canadian real estate company that offered commission-free real estate services.<sup id="cite_ref-11" class="reference"><a href="https://en.wikipedia.org/wiki/Purplebricks#cite_note-11"><br></a></sup></p>
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jchancellor-FAypfDUnLy

UK disruptor Purplebricks to also exit the US after Australian low commission venture failure

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<p>"Really they were a dressed up private seller platform that was purported to be something else."</p>
<p>That's the view of REIA deputy president Hayden Groves, who told Ross Greenwood's 2GB last night that the exit from the Australian market confirmed yesterday, was good news.</p>
<p>"It hasn't worked here," Groves said.</p>
<p>Its Australian website had about 1400 property listings.</p>
<p>It had 3,600 verified five star reviews.</p>
<p>"They were really trying to take the real estate agents out of the process of real estate professional transactions, purporting the fact they were real estate agents which was curious.</p>
<p>Groves said in actual fact they were a dressed up private seller platform, pretending to be something else.</p>
<p>"It's great news for consumers of professional real estate services in the country because they were duped by false and misleading advertising by Purple Bricks purporting to be something they're not.</p>
<p>"They were saying that real estate practitioners in the traditional sense were nothing more than commission collectors and not undertaking their role correctly.</p>
<p>"They were saying they were real people and real real estate agents that they were going to be holding the hand of the consumer, seller, client in the selling process the process</p>
<p>"But of course their model, their agents weren't incentivised to get an outcome.</p>
<p>"Effectively these poor consumers, who were expecting something else, were left without any of the proper services and support services they needed to get the job done.</p>
<p>Purplebricks dubbed themselves a low commission agency, having had previous success in the UK property market, they entered Australia just two years ago.</p>
<p>The group sought to disrupt the old fashion way of paying an estate agent commission of between two and three percent of the sale price. </p>
<p>The saving on a $900,000 sale was put at $11,300, given an all up fee of $8,800.</p>
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<p>There were around 30 agents across New South Wales who will find themselves out of work, and 30 o so in Queensland. </p>
<p>Purplebricks sponsored House Rules last year, however a cost-cutting measure saw them hand it over to Century21 for the current series.</p>
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<p>The NSW have 240 properties for sale, having sold 1,038 in two years, buoyed by an advertising campaign for listings by the celebrity builder, Barry Du Bois.</p>
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<p>Their revised so-called 'first-class package' was priced at $4,400, which pays for the marketing, with a further $4,400 payment when the sale of the property is successful.</p>
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<p>It was pitched towards typically outer-suburban and regional listings.</p>
<p>Its most upmarket listing was in Vaucluse, albeit a dump, which belonged to the socialite mortgage broker Lizzie Buttrose. </p>
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<p>Vic Darvey, the London-based Purplebricks Group CEO said after much consideration it had "made the difficult decision to close the Australian business."</p>
</div>
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</div>
<p class="m_-3209228228303449216gmail-x_MsoNormal">"We’ve been operating here for two and half years and, unfortunately, we have been unable to make the progress in the Australian market that we’ve wanted, despite the tireless efforts of our employees.</p>
<p class="m_-3209228228303449216gmail-x_MsoNormal">"We will take no further listings in Australia, but intend to engage with our customers to finalise all existing agreements.</p>
<p class="m_-3209228228303449216gmail-x_MsoNormal">"This is not a decision we have taken lightly, but with market conditions becoming increasingly challenging, we do not believe that the prospective returns in Australia are enough to justify continued investment."  </p>
<p class="m_-3209228228303449216gmail-x_MsoNormal">Only last week UBS said the company was not likely to make money in Australia until 2022.</p>
<p class="m_-3209228228303449216gmail-x_MsoNormal">It was forecast that Purplebricks would potentially have to close its Australian operations to save the UK mothership.</p>
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<p>Michael Bruce, the group's founder and chief executive officer is stepping down from the business with immediate effect.</p>
<p> </p>
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jrobinson-rf4aSBido9

Purple Bricks was a 'dressed up private seller': REIA deputy president

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<p>Leading investment bank UBS has predicted that shares in Purplebricks, the international low commission estate agency, will soon hit £1 each, the price at which it floated in December 2015.</p>
<p>In May last year its shares were trading at £3.54p but are now exchanging hands at £1.33p.</p>
<p>It suggested the company will have to borrow another £100m ‘soon’ to fund its mounting group losses.</p>
<p>UBS has based its prediction largely on the worsening position for Purplebricks in Australia, which the investment bank claims will not break even until 2022, three years later than expected, while its US operation is not likely to break even until 2025.</p>
<p>The investment bank says it expects Purplebricks’ Australian operation to generate revenues of £26 million next year on which it will make a loss of £12 million, while the company’s US operation could lose £53 million.</p>
<p>“Operations in Australia and the US are characterised by having very limited visibility on the businesses’ development and break-even horizon – Australia keeps being postponed and losses in the US are expected to worsen”.</p>
<p>Referring to Purplebricks’ recent decision in Australia to alter its up-front model to a more traditional post-sale fee one, UBS say the move “raised concerns about the future of online agents and the upfront fee model”.</p>
<p>UBS is also concerned that parts of both Australia’s and the UK’s housing market are experiencing tough conditions at the moment, claiming that Purplebricks’ operation has lost momentum.</p>
<p>Purplebricks share price has been falling for the past 12 months. </p>
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<p>Purplebricks, which launched in Australia in 2016, recently opened operations in the NSW Central West by appointing an agent in Bathurst, David Chapman. </p>
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<p>Chapman started his real estate career in 2012 with First National Real Estate, then was the co-owner of LJ Hooker Bathurst, moving on to Century 21 Bathurst and then leaving the industry in 2017. </p>
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<p>Chapman told the local paper that Purplebricks "was the fastest growing real estate brand in Australia."</p>
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j.ballantyne1990-6AQqhLzZaK

Purplebricks not likely to make profit in Australia until 2022: UBS

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<p>The cut-price online estate agency Purplebricks may have to abandon its struggling Australian operation to survive in the United Kingdon, analysts at investment bank Berenberg have warned.</p>
<p>Berenberg slashed its share price forecast for the embattled company from £4.70 to 80 pence.</p>
<p>It switched its rating from "buy" to "sell", sending the stock into an 8.4 per cent tailspin on the British share market on Friday.</p>
<p>The Financial Times reported: "It was more bad news for Purplebricks as Berenberg analysts turned sharply bearish on the online estate agent."</p>
<p>The analysis by Berenberg suggests Purplebricks is “running out of steam” in the UK.</p>
<p>However Purplebricks hit back saying it is looking to boost the business in Australia.</p>
<p>Investment bank Berenberg also said the company might have to quit the US to survive in its core British market.</p>
<p>"Having flown too close to the sun, with operations in five countries and cash burn of circa £7 million [$12.9 million] a month, we believe the group will be forced to seek additional equity at a significant discount or a doubtless expensive debt facility; or to abandon the Australian and US operations and retrench to the UK and Canada," the German private bank said in a note to its clients.</p>
<p>But Vic Darvey, the London-based group's global chief operating officer, rejected the analysis, reaffirming that Purplebricks was committed to the Australian market.</p>
<p>"Our transformation over the last six months is bearing fruit, and we are pleased with the recent growth in instructions and sales," he told The Australian Financial Review.</p>
<p>"Recently, we have boosted our agent numbers and expanded to new regions, bringing our proposition to more Australians."</p>
<p>Darvey joined the firm in February from MoneySuperMarket.com with experience of tech-focused, customer-centric businesses.</p>
<p data-gtm-vis-first-on-screen-7770372_137="7544" data-gtm-vis-total-visible-time-7770372_137="1600">Purplebricks shares closed at 129.6 pence on Friday, down about 75 per cent from a mid-2017 high point of about £5.13.</p>
<p>The company's current bout of share price doldrums began in February, when it cut its revenue forecast.</p>
<p>One of the agency's co-founders, Michael Bruce, is now running the US business full-time, having previously divided his time between there and Britain. Meanwhile, his brother Kenny Bruce has only just returned from Australia to focus on the British business.</p>
<p>"In our view, the limitations of the upfront fee model are being laid bare," according to the Berenberg analysts' note which joined other analysts in questioning the business model.</p>
<p>"In our view, the limitations of the upfront fee model are being laid bare and the addressable market is proving much small than initially hoped," the Berenberg analysts said.</p>
<p>In Australia, the newly-installed CEO Neil Tavender and Kenny Bruce have overhauled the charging model, so that half the fee is paid upfront and half on completion of the sale.</p>
<p>"While the local market has softened, the fixed fee model continues to be an attractive proposition for sellers who want to maximise their returns," Mr Darvey said on Sunday.</p>
<p>The pressure on the Australian business was exposed when it reported an $18 million interim loss for the six months to October.</p>
<p>While Purplebricks has sold more than 5000 homes since launching in Australia in September 2016, the company now spends about 84c in advertising to generate a dollar of revenue.</p>
<p>The Australian Financial Review has regularly revealed an exodus of estate agents along with allegations of a "toxic culture" within the company.</p>
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