Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

Peter Chittenden

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Do off the plan apartment marketing agents have any responsibilities after the signed contract? And how accountable do they see themselves when things go awfully wrong?
I was wondering what role the selling agents at <a href="/news/otp-sugarcube-honeycomb-erskineville-buyers-locked-out-after-contaminants-fears">the potentially still toxic Erskineville projects, the 109 Sugarcane apartments and the 18 Honeycomb terraces</a> felt that they had three or four years after they secured the sale for the Chinese developer Golden Rain Developments.
It was front page news in Sydney on Friday, followed by extensive website coverage throughout the morning and then on the Friday night television news.
The poor OTP buyers are in limbo, locked out of the completed residences after a dispute between developer and Sydney City Council over the potential toxicity of the former industrial site. The issue appears to be related to contaminated water run off, especially to and from the public land, rather than the earlier feared gas vapour issues in the car park basement.
The developer engaged Ray White Projects and Colliers International to sell their project quite a few years ago. It was a sellout.
The earliest Colliers marketing advised an anticipated early 2017 completion, then it was subsequently advised as April 2018.
Some 15 months further along, not one intending owner occupier resident has moved in, nor investor able to rent the residence out.
This extended period of limbo sees their deposits sitting there, awaiting final settlements, with their lenders no doubt cautiously wondering what impact the toxin turmoil, even satisfactorily resolved, ought have on their valuations.
The strata plan awaits registration.
A truly dreadful situation for every buyer.
Ray White Erskineville Projects advised they had marketed the 18 off the plan terraces in Honeycomb development in good faith as per the vendor’s instructions.
"When Ray White Erskineville Projects became aware that technical compliance issues had arisen between council and the developer over occupancy, we communicated to all purchasers any information that had been provided to us," it said in a statement issued within 90 minutes of the request.
"Ray White Erskineville Projects empathises with the challenges this situation presents to both the developer and the purchasers of these properties and is keen to see the resolution of any outstanding matters so the properties are able to settle," Ray White advised.
Colliers, headed by Peter Chittenden, took another course altogether.
"As Colliers were engaged as project marketing agents for this development, all enquiries should be referred to Golden Rain Development," it advised News Ltd's Daily Telegraph much later in the day.
The Sydney Morning Herald reported Colliers directed inquiries to Ray White.
It was March 2015 when Colliers kicked off the marketing in Domain with studio prices from $550,000, and the advisory that the projects were due for completion early 2017.
In August 2015 Domain updated readers in an article on pet friendly projects with the same early 2017 completion date advisory, and Colliers pricing for the one-beds from $645,000, two-beds from $870,000 that remained for sale off the plan.
Chittenden's linked-in ranks Sugarcube among his "successful projects."
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Golden Rain Development has completed 30 projects across Asia with the Erskineville development promoted as its “flagship project” in Sydney. They boasted the residences are amongst the most desirable ever to grace Erskineville's leafy village streets.
Golden Rain Development sent a letter to buyers in April this year, acknowledging delays in the issuing of an occupation certificate.
"An unforseen planning issue is at the heart of the delay," said the letter.
It didn't mention the toxicity issues. Owners described it as "unbelievable" and "shocking" to learn of the contamination issue in the SMH, after desperately pressing for answers for over a year.
One buyer told the SMH they had left "countless messages" with Colliers.
"When I purchased they were saying this was a fantastic developer and well renowned. It's just a horrible scenario to be in."
 
 
 
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jchancellor-FAypfDUnLy

How OTP estate agents see their responsibilities after the signed contract?

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Sydney’s residential market currently reflects a trifecta of settings driven by lack of supply, population growth and low interest rates (cheap money).
In combination these factors are impacting affordability, partly because the current market is very competitive.
Then we see interest rates at lifetime lows and a very mixed picture concerning employment that I think extends beyond the headline numbers, and so each has a big influence on the make up of current demand.
When looking at affordability, I think we also need to look at the competition that exists in the market because of population growth and the impact that this has on demand. 
First let’s just recall the fact that there has been a big gap in the supply of new dwellings in the Sydney market since 2001-2002 with supply at their lowest levels in 2007-2008 and again in 2008-2009. Looking at net migration numbers during this same period there are some figures that further help to explain why demand for housing was so strong.
The last time the number of net migrants to Australia was below 100,000 plus per annum was in 1999 at 96,500 new arrivals, but since then there has been strong growth in numbers at a time when our own domestic birth rate has also been on the increase.
In 2006-2007 net migration increased by 58%, peaking at almost 300,000 new arrivals in 2008-2009, and at that time supply was in free-fall. Currently for 2015 we are looking at approximately 215,000 new arrivals and we also need to remember that the birth-rate is also increasing. The combination of falling supply and strong population growth was always going to impact affordability because of rising prices.
<ul>
<li>Age Profile Adds Pressure</li>
</ul>
Affordability is, I suggest, also tied into the fact that currently Australia’s age profile adds to the pressure of demand because, I think its reasonable to suggest that by 35-40 most potential buyers would already like, if they could, to be established in the housing market.
Australia’s median age currently stands at 37.3 years of age and when you look at the average age profile of the top four countries of origin we see that those arrivals from the UK are aged 54, from New Zealand 40, from China 35 and from India 33, and in each case for varied reasons these are prime ages in the housing market.
A report published late last year by website, realestateview.com.au showed that 60% of first home buyers were now married and having children before they could afford their first home, and the same report also found that 57% of first home buyers are now in their 30s or 40s. This all makes for a very crowded peak of demand in these various age brackets.
<ul>
<li>Affordability &amp; The Deposit Gap</li>
</ul>
Low interest rates look like they are going to be with us for sometime yet and this is good news for anyone with an existing loan, and there is no doubt that low rates are a key driver of demand. So much so that there are suggestions that investors might soon face some form of loan restriction, which would be a major shift in policy for a ‘free-market’ government.
However while low rates do continue to drive demand, affordability is a real hurdle more associated with buyers having to have their traditional 10% deposit, which would currently have to sit (in the Sydney market at least) around $80,000 – $100,000, plus an allowance for other costs, and while there is some limited stamp duty relief, a deposit at this level requires pretty good earnings and saving capacity, or a big helping hand from mum and dad.
Help from parents in helping to fund their kids into a home is now very common, and it’s a trend being experienced in many countries. However with parents dipping into their capital or savings this might impact retirement plans, and in the USA as one example this impact on retirement plans has raised the question, 'are your kids ruining your retirement’ – so it’s a more complex picture.
Weekend reports suggesting, yet again, that first time buyers should have access to their superannuation, does merit more thought, in particular if buyers are in the age brackets above. It seems overly simplistic to dismiss this suggestion, because really it simply moves money from one asset class, super, into another, housing and in doing so helps create many social benefits.
I think this also goes some way to clearly show how complex an issue affordability is across the housing market, and we have not even touched upon what might be done with the actual physical built product to help. Such as smaller homes and the idea of more use of pre-fabricated homes.
<ul>
<li>Employment &amp; Interest Rates</li>
</ul>
No matter what the state of the market is, stable secure employment is a vital element. Currently the economy is in a state of transition and last year we saw some very big job losses in manufacturing, and now falling commodity prices are also impacting some areas of mining.
If we have a combination of rising interest rates and higher unemployment then house prices would respond, but that combination looks unlikely. Currently the rate in January was 6.40% however there is a degree of debate going on about the ABS figures and some private sector polls, such as that conducted by Roy Morgan Research suggest the rate is much higher.
However for many years between the mid-1970’s to the early years of the 2000’s the rate was more commonly near 7.5%, if we returned to that sort of figure then the housing market would change dynamics. To prevent this we will continue to see the need for structural reform, which is a hot topic for government. We will continue to keep a very keen eye on these figures.
Alongside unemployment rates, we know that we have home loan rates that are now for variable loans well below 5%, and while loans will always vary between lenders, among the big banks we are looking at around 4.73%, but then if we look at five-year fixed rates, again dependant upon loan term rates as low as 4.29/4.39%, which seems to indicate we are locked into low rates for a while yet.
I think that the market is clearly very active. I do not need to tell anyone that fact, development in Sydney, Melbourne and Brisbane continues at a solid pace and we have many new players coming into the medium-density market.
Then if we look at all of the dynamics at play for buyers, for the economy generally and the seemingly difficult path of government policy reform, I think that the housing market is more complex than it has ever been, but the fact is demand remains. We have to work with the shifting demographics and ensure we deliver the best product where people wish to live, be they owner-occupier or investor.
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pchittenden-eLqUUC8TWW

The Sydney market trifecta - lack of supply, population growth and interest rates: Peter Chittenden

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Sydney’s residential market reflects a trifecta of settings, the seeds of which were sown back in 2002-03 when residential building approvals first started to fall.
Today we have a combination of dynamics characterised by a gap in supply, population growth and cheap money, not only here but also across the world.
There are few ways or policy settings for any of these key market drivers to change, and as a result prices will continue to respond by increasing, and while there are some wider concerns about the local economy that I will visit here, let’s for the time being stay on topic and look at the make up, some history and future trends associated with our trifecta.
Sydney Median House Prices
Sydney’s median house price is clearly heading towards an eye watering $1,000,000, and the rate of increase, although associated prices, have out-paced population growth. In 2011 the median prices was $634,700, and metro Sydney’s population stood around 4,391,674. By the end of 2014 the median price had increased to $873,786 (by some estimates it’s now $1,000,000) and the population 4,657,000.
What we can see is that while the population grew by some 6% over the period, prices increased by 37%.
Population Growth
Population growth continues and between 2006-11 according to the ABS the south-west fringe grew by an estimated 2.9%, and the Inner West by 2.7% – 3.2%.
By 2036 Sydney’s population is predicted to reach 6,140,000 adding some 1,500,000 or 32% over the next 25 years. This growth will see continued demand in the big growth regions in the south and north-west of the metro area but will also see a continued big increase in housing density.
The trend shows that in 2001 15.7% of housing was high-density, but by 2011 that figure had moved close to 21%, led by the City of Sydney at 70.2%.
For the City Of Sydney, as might be expected, that trend is only going to continue. Currently in 2015 its population is around 200,772, and by 2036 the population is expected to increase to 280,964 or an increase of 39.94%.
Sometimes I hear people express surprise that the city’s population is relatively small for a major city, however growth is assured and this is already leading to a demand for a diverse range of city apartments, with clear sub-markets emerging.
It can be expected that the continued emergence of these sub-markets will further drive higher prices as buyers demonstrate a willingness to pay higher prices for premium locations, such as the city’s north.
Supply of New Dwellings
However of the three factors in this discussion, it is the supply of new dwellings that goes a long way to explaining the current pressure on prices, so let’s look at some of the figures to see why.
In 1996-2001 there were 110,000 new dwellings built in Sydney, in 2001-2006 numbers fell to 93,000 and in 2006-2011 numbers continued to fall to just 72,000, and by way of comparison that figure was half of what was built in Melbourne. I think when you look at current prices the beginnings of our under-supply had already been cemented.
A gap in the supply of new dwellings has opened up in the Sydney market since 2001-2002, which was the last time that population growth and the supply of new dwellings was more or less even.
There was a huge gap in 2007-2008 and again in 2008-2009, in both periods population was well in excess of 82,000 and the supply of new dwellings was only at 18-19,000 and ever since supply has not kept pace with population growth.
In 2011-2012 the population grew by 62,500 while only 22,300 new dwellings were approved. And NSW is seeing its population grow again after some slower growth over the last five years, possibly associated with the mining boom in other states.
And while the supply of new dwellings is gaining pace a big gap still remains and to a large degree planning issues for new developments are also hindering a quicker recovery in supply.
Interest Rates
The third factor is cheap money, both here and offshore, only this weekend China’s central bank cut interest rates. The second cut in less than four months. And while domestically this is seen as an aggressive move aimed locally at lifting flagging economic growth, cheaper money in China may well drive more buyers into our local real estate market.
However when the lack of supply and continued strong demand across Sydney is combined with the steep decline in interest rates, the figures are revealing. In 2011, the standard variable home loan rates were near 7.79%. Today in 2015 it is sitting around 4.54% and may even go lower.
I think that the headline figures across the supply gap, the continued growth of our population and the big impact of cheap money all speak volumes about why prices continue to rise.
This then raises questions about the general level of affordability, the potential impact on the market when rates do start to rise again, the sustainability of employment numbers and the further need for tax and economic reform. Each has the potential to impact the market and if all combined the current market dynamics would clearly shift and so these areas will be my next rich source of discussion.
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The factors that will continue to drive Sydney's prices higher: Peter Chittenden

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We all take for granted that any new apartment project or housing estate will have the essential services of water, sewerage and electricity, the vast majority of buyers would not even question this fact.
But what about telecommunications infrastructure? Can we provide the same level of service guarantee?
I recently came across a quote that I recall went something like this: “ The availability of internet connection is as important as food and air in this era.”
With this declaration fresh in my mind I was recently walking through a shopping centre in the midst of one of the most densely developed areas of inner Sydney. All around me there were various cafes and casual seating areas full of people using mobile phones, tablets and computers.
Not just a few, but almost everyone, and a big number of people were also on Skype having long, almost like a face to face conversation as they had a coffee or simply sat in the public spaces to communicate with family and friends. Among all of this activity there were a large number of people on several mobile devices, they were clearly working in a very concentrated way, checking figures, placing orders, doing a great deal of productive work.
The café and mall now looks more and more like the workplace of today, these areas are always busy, always full of residents and visitors. In the 1700s the Industrial Revolution brought about a trend towards city living, which today is reaching its climax.
In the midst of the Communications Revolution, it has been predicted that by 2050 as many as 75% of us will live in cities, by contrast in 1900 the figure was only 10%. Alongside this mass movement of population, there will be pressure on housing, but alongside that there will be comprehensible pressure to deliver reliable communications, but more I suggest cutting edge communications will be needed if not demanded by everyone.
Good Enough is Not Good Enough and Who Pays
Generally today, most if not all new apartments are equipped with high-speed internet services, some older buildings may lag the trend and in some areas there may be a reliance on wireless technology.
However like the exchange of goods and services that was newly prevalent in the 1700s, today all communications and commerce, in fact our entire way of life and economy is connected 24/7. As urban density increases, the delivery of reliable telecommunications is vital, it is exactly just like the need for air and food.
But in the midst of such obvious need and demand are we doing a good job, is this vital infrastructure being delivered on-time, at a reasonable cost to developers and consumers. The role out of the NBN is an ongoing task for private enterprise and a key responsibility for government and for planners and it’s now a fundamental factor for the development industry.
Home buyers moving into a new estate or a new apartment building in any location across Australia, expect, and should have access to the best telecommunications. High-speed internet for example is no longer a novelty, not in 2015.
In a recent Property Council submission the Residential Development Council responding to the federal government’s release of its new developments policy made a number of very clear and what I think were worthwhile points. Key among which was the negative impacts on affordability that could flow from some of the policies outlined in the government’s policy.
The issue relates to the ‘fairness’ of asking home buyers, who already pay as much as $90,000 in Sydney and $80,000 in Melbourne and $60,000 in Brisbane, to pay still more money towards telecommunications infrastructure. Given how essential modern communications are today I agree with the Council when it says that critical communications infrastructure needs to be delivered in a timely, equitable and cost-effective way, avoiding extra charges and additional planning delays.
Personally I would think that the majority of people sitting in the cafes, I mentioned earlier would expect nothing less.
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Telecommunications infrastructure is an essential ingredient of any new development

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After several decades working in this industry, I often get asked for advice.
I am referring to the casual questions that family, friends and associates ask me, such as: ‘I am looking to buy an apartment, where should I buy and what should I pay?’ or ‘I have been watching prices increase, do you think they’re getting out of control and may soon fall?’ and another common question – ‘Should I buy off the plan or an established apartment?’
Now in today’s fast moving market, these sorts of simple questions are loaded with so many options, because circumstances will be very different for each person. But if I stop and think about these questions, which I do, then I think that we tend to pay a lot of attention, possibly too much so to the big picture issues.
Like reflecting on interest rates, which has now turned into an almost never-ending narrative, or if there is an oversupply or too little supply and the constant reporting of auction results. I think that we forget about the basics. Buyers start to concentrate on the big picture instead of simply concentrating on their own plans and needs, the whole buying process becomes hard work, and it needn’t be.
For almost anyone looking to buy, even in the current market I would always suggest starting with the basics. Not being driven by constant media headlines, but concentrate more on what you as a potential buyer want, what are you looking for in your purchase, what are your immediate needs and plans for the future?
I think the same rules and basic ideas apply if you’re a first time buyer, a second or third time buyer or seasoned investor.
Just what are the basics? Nothing surprising really, but I would suggest: finance (your budget), location, timing and a hard-nosed view on the ‘must-haves’ in your property search. I think in that exact and, I suggest, somewhat logical order. This short list will I think serve any buyer well no matter their individual circumstances, so let’s look at each individually.
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<li>Finance</li>
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This is a subject that none of us, except possibly a very lucky Lotto winner can ever escape, the available finance or budget for any purchase is the essential starting point. It’s a topic that any buyer very likely thinks about the most, but I feel it’s important to appreciate that there’s lots of help and options available. Plan your finances and always think well beyond today, take into account the ups and downs, which might happen, in your personal affairs.
But above all, get as much information as you can. From the feedback I get, this is something that every buyer does appear to do these days. Lenders are keener than ever for your business, and help to find the best loan is free.
Right now we have the lowest interest rates since 1959. So plan your finances to take the maximum advantage of competitive rates, but keep in mind that rates will almost certainly go up sometime in the future. So make the best of the prevailing conditions.
If you lock in a three year or five year term, make sure that you still have the ability to make additional repayments, now while rates are low, and always keep in mind add-on costs like stamp duty, legal fees, moving costs, the possible need for temporary accommodation and be aware of any fees that attach to your home loan. Look beyond the headline details and understand the fine detail of your finances, that’s my basic point here, don’t only concentrate on the interest rate.
<ul>
<li>Location</li>
</ul>
When it comes to location, above all I think it pays to be flexible because it can be easy to become fixated about a particular location, and if this happens early in your search, the location can become an unnecessary roadblock. Again, take time to explore options because the ideal option might just be in an area or suburb you have previously overlooked.
The key points of any location often revolve around access to transport and facilities, but there could well be options if you take a flexible approach. As different governments start to roll out new infrastructure many areas will change over the next few years. If for example you want to live close to rail connections, an option might be the drive and park facilities.
Schools and shopping can also be important, the right school can be a tough one, but with many larger shops in particular supermarkets virtually now open 24/7, can you be more flexible? And it pays to be aware of what future developments might be coming to an area that may well add future value.
For apartment buyers open space is also a key point of location. Today many new developments are very well planned and designed with very attractive indoor and outdoor spaces, so when considering location take a close look at what’s on offer with individual projects.
<ul>
<li>Timing</li>
</ul>
Now I think that timing might just be one of those areas that you end up with possibly having the least amount of control over. In the housing market the most common reason to move house is usually associated with family formation. Marriage, living together, having kids, a divorce or retirement, in reality a variety of circumstances will bring buyers into the market.
Sometimes these things might sneak up on some of us, but generally timing of a move should not be allowed to become that critical that it forces you to buy or sell with little time to plan. If you’re in a buyers market, there’s possibly less pressure but even if the market is a sellers market plan your move to suit your own timeline and avoid over commitment of your finances in order to try and beat the market, that might just create more problems in the future.
<ul>
<li>Must Haves</li>
</ul>
This area involves possibly the most heart-burn, the most emotion, where dreams and reality may at times hit a bump. Responding to a marketing headline of ‘Inspired Design’ might be great for us in the business, but for buyers it pays to make sure again that you do not limit your choices.
Any new apartment needs to fit your lifestyle, your aspirations, I understand that, but always aim to sign-off on the basics first, like the number of bedrooms, do you need parking, or is a secure storeroom more important. A good outdoor area, a balcony, terrace or courtyard will always be high on the list of must haves for many buyers. Driven in part out of the reality that in some markets apartments are more compact but I think are generally well-designed.
However today the open plan approach to apartment design really does work to accommodate the living arrangement of most buyers, this creates flexibility. And if you’re buying off the plan there’s often a choice of interiors, finishes and colour schemes.
Kitchens and bathrooms are now attractive spaces, kitchens are evolving into almost bespoke pieces of furniture in their own right – but if everything is not perfect, think about the options you might change. Balance a good location against possible interior changes or furniture options that you can make.
Also keep in mind things like privacy and natural light, and aspect and sunshine because in the rush for the designer-finish these simple things can be overlooked and they can make a great deal of difference to the appeal of an apartment in the long run.
<ul>
<li>It’s Your Home</li>
</ul>
When looking to buy I think it’s important to work to your own timetable, explore all of the options of finance and location and take charge of what should be an exciting time.
Try not to be distracted too much by the big-picture because the market is still full of different options. Your final choice might end up being different from what you had first thought of as your ideal home, it might just be better! My suggestion is concentrate on the basics.
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The five basics of the property search: Peter Chittenden

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Just when you thought affordability was becoming a word of the past, I’ve unearthed another hard to believe story on the Gold Coast, alongside further evidence of the appeal of the local market as local demographics continue to evolve.
Our Gold Coast Team have just launched a new residential project located in the heart of Robina, on the doorstep of the thriving $2.5 billion town centre.
Robina is a classic and now very successful masterplanned residential community that has gone from strength to strength over the last two decades.
Perhaps best known as the home of the Bond University, Robina is now delivering the dream of the planners, it’s a thriving desirable community. Yes, it has access to great beaches and much more.
As a potential place to buy into the Queensland real estate market it offers a range of opportunities that will appeal to both future residents and investors alike. I also think that the development mix adds to the area’s appeal.
The choices are dynamic and importantly aim to meet the needs of singles, families, retirees and students across a variety of prices. Variety is important with apartments, villas, townhouses and detached homes.
While the Robina Town Centre is the focus of the area, there’s a direct train link to Brisbane. While employment is diverse across the Bond University, Varsity Lakes IT hub and now a brand new football stadium will also create economic momentum.
Robina’s history doesn’t extend much past the late 1980s, which makes the rate and scale of development impressive as it has matured into a business, medical, commercial and residential centre.
Robina has certainly proved to be centrepiece of Gold Coast development and with a strong future.
Picture of Robina courtesy of <a href="https://commons.wikimedia.org/wiki/User:TravellerQLD" target="_blank" title="User:TravellerQLD">TravellerQLD</a>/<a class="mw-mmv-license" href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by-sa/3.0" target="_blank" style="font-size: 12.1599998474121px; line-height: 1.3em;">CC BY-SA 3.0</a>.
 
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Robina has proved to be centrepiece of Gold Coast development: Peter Chittenden

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We tend to pay a lot of attention to the penthouse level of projects.  They attract our interest because they can be dreamlike and expensive, but we tend to pay far less attention to the ground floor, the street levels of projects.
They can be problematic spaces, and there’s nothing more 'depression' than a ground floor shop or office space with a faded for lease or for sale signs languishing in the window.
However this space is often the public face of a building, it’s the street cred, and the visual appeal of a building can be both adversely and positively impact by what happens at this level.
Ground floor space that is not used as residential accommodation needs to be carefully considered, and there are various options and I suggest opportunities to use this space. There are however particular hurdles that have to be taken into account when the ground space fronts a major retail street or commercial zone. Or it’s an even more important when new ground floor space is intended to create a new retail or commercial zone, often this is a key planning requirement of the local council. Even if there are times when this space has limited commercial value.
Some Quick Options
Most buildings will have the main entry foyer at ground level, the area can also house a building manager, mailroom or other community spaces. But these spaces rarely occupy the entire ground floor, so the space is shared with retail and commercial space.
Other options include the creation of a breezeway under the building, connected to either an internal private open space, or to public space. The use of this type of open access way does help to create a more immediate connection to the local neighbourhood, in particular in very dense areas. I have also seen a number of large buildings where a big part of the ground floor is given over to a gym and indoor pool.
However as the density of developments increases there is a greater tendency for this area to be assigned for retail and local services. Many councils retain this idea as a key planning goal. The main task is to make sure this space adds to the appeal of the building and that retail opportunities are in tune with the needs of the local community and residents so that the space both engaging and financially viable for any tenant or owner operator.
Parking Remains A Hurdle
High-density residential development is now very common in Australian cities and because of the very limited supply of greenfield locations, developments are now commonly located in old industrial areas, or in areas around public transport hubs such as railway stations.
Retail facilities in these areas might be limited or located along old strip-shopping streets, while major shopping centres may be some distance away. Island site remote from the new generation of high-density housing, and it is partly for this reason that councils look to have retail space at ground floor level. There is also an ideal that this space be designed more for the pedestrians than for easy car access, but this creates a problem, because without easy parking it is hard to attract enough customers to support the retail space.
The simple idea that high-density residential development alone will support retail services rarely happens because big numbers of apartments are required, and even in high density locations like Sydney’s Victoria Park, retail has to be supported by ample and easy to access parking. It’s not a readily available or commercially viable proposition.
Part of the solution is to aim to silo retail developments in specialist hybrids so that they can attract customers willing to travel, or with a tenancy mix that has rusted on appeal to the nearby apartment dwellers. However again this is not an easy task, and every retail level can not be a trendy coffee shop, although that’s an impression you often get walking around some new project areas.
A nearby by major regional shopping centre is always a plus for a new residential project, but this monopoly of retail and to some extent services dies make it hard for one of retail locations or even small clusters to trade profitably. For this to happen you need density like you find in mega cities like New York, plus very easy access to mass transit.
Still many development controls in our capital cities mandate the provision of retail space down at the street, this does not always reflect the reality of todays shopping habits. In planning projects there needs to be a strong reality check of how this space will be occupied, clever thinking can make the space more useful and appealing and so eliminate the need to tired to-let or for-sale signs.
Another hurdle is the fact that most of the shops along streets will be sold or leased separate strata units. This makes it almost impossible to have a co-ordinated retail mix strategy and the shops may take many years to mature and then add to the appeal of the neighbourhood.
Each building and project needs to be considered so that token retail space is not seen as the only alternate, there may well be other options including clever landscaping solutions.
Nevertheless, high land costs will always put pressure on the use of this space but detailed planning can lead to better outcomes, because an active ground level, will add value and brand appeal to any apartment project.
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Down at street level: Active ground levels can add value and appeal to a development

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Every year the Housing Industry Association (HIA) publishes a detailed summary of the key facts about the Australian housing and construction industry.
With some figures going back over a decade, the summary always makes for interesting reading. I'm going to take a look at some of the key differences between 2013 and 2014.
The key headline figures show that last year there were 167,947 new homes built, up from 151,508 in 2012, the total value of housing construction increased from $68.3 billion to $69.9 billion, there was a big jump in the number of people moving into new homes from up from 389,376 to 434,788. There was also a notable increase in the number of people employed in the industry from 1,000,949 in 2013 to 1,037,412 in 2014.
As construction was seen as taking up some of the fall in activity associated with the mining boom, it is interesting to note that the value of construction as a percentage of GDP in fact fell from 4.6% to 4.5% in 2014. Even as the industry expands it has yet to reach the previous high of 5.3% recorded in 2010.
Looking at the make-up of the total number of dwellings built, the number of new homes built in 2013 increased from 90,268 in 2012 to 95,543 in 2013, the highest level in three years. However units continue to out pace detached dwellings. In 2012 there were 61,176 units built, in 2013 there were 72,404, however this is a huge increase over 2009 when only 38,992 units were built. It may well be that in 2014 unit numbers will have increased by 100% in just five years, which is a clear indication of where the market is heading.
Renovations are still very popular and this market has been running at consistent levels for some years, peaking in 2010/2011 at $31.8 billion. In 2013 renovations accounted for $27.9 billion, but outpacing all other areas of new construction. The renovation market is clearly an extensive and somewhat overlooked area of the housing market, possibly because activity is so fragmented and wide spread.
The HIA also tracks the average size of detached homes and attached dwellings. The size of the average family home has been relatively static at around 240 square metres for some years, attached dwellings are however getting smaller, and fell by 5.4% between 2012 and 2013 to 134 square metres having peaked at 143 square metres in 2004. However when looking at size, the HIA figures show that it is the size of the median lot size of land that has fallen the most, that figure stood at 592 square metres in 2004, and in 2013 there was a drop of 12.1% since 2008, down to 480 square metres, although in the last 10 years lot sizes have shrunk by more than 20%.
The composition of new dwelling approvals continues to change and in 1992 the total volume of detached dwellings represented 73% of all new dwellings, in 2013 that has fallen to 56%. By contrast, in 1992 apartments accounted for only 9% of the volume, in 2013 that has increased to 30% and the trend has been constant since 1997. The total dwelling stock in Australia now stands at some 9,008,000, an increase of 7.6% in the last 12 months.
Capital city vacancy rates have shown some movement between 2013 and 2104, the most notable shifts were in Darwin with rates increasing from 1.0% to 2.2%, and in Hobart there was a drop from 2.6% to 1.6%. Sydney and Adelaide remained stable and the vacancy rates increased in Melbourne, Brisbane, and Perth.
The HIA also notes in its update that according to RP Data, after inflation house prices across all capital cities increased by 7% over the past 12 months, and 13% in the past 5 years and 27% over the decade. I suggest that next year’s figures will continue to make interesting reading where price movements are concerned.
One final point is the burden of stamp duty across all markets, the duty on a median-priced dwelling in Victoria at 5% or $24,100 and in NSW for a similar home at 3.6% the duty would be $19,200. Clearly if there is to be a tax review and a change to GST, this level of duty begs for adjustment.
While the industry has seen growth in most sectors, the total number of building approvals at 178,897 is the highest figure since 2010 and a big increase on 2013 when approvals totalled 154,604. There were 34,506 (owner-occupiers) loans for new homes and 64,638 loans for the construction of new homes, which shows that Australians are still very much in love with the idea of building their own homes. The ‘dream’ is still very much alive as the increased activity over recent years shows.
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Construction industry stats show the Australian dream is still very much alive

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Australia has always relied on overseas immigration to help sustain our population and wealth, however according to figures published by the OECD, our immigration rates have been remarkably stable.
In 1995 non-Australian born residents accounted for 23% of the population and in 2011 that figure had only increased to 26.7%, for comparison in Canada the figure was 20.1%, in the UK 12%, the USA 13% and in New Zealand 23.6%.
At the same time as immigration has been very stable, investment inflows from offshore have been growing but there does not appear to be any direct link with high house prices. According to the OECD real house prices increased by 9.7% in 2010 (the most recent peak in prices) but they went into reverse in 2011 &amp; 2012 by 5.0% and 3.3% to increase by 3.8% in 2013, and in many ways 2014 continues a period of catch up, not withstanding the activities of foreign buyers.
While prices have been increasing over the years 2013-14 and affordability has fallen mainly because of high prices, interest rates have been very low. But it appears many Australians may still be facing a struggle to afford a home. One indicator is that the national savings rate, the percentage of disposable income that is saved has according to the OECD been in a steady decline; in 2011 the figure stood at 11.8% and in 2015 it is expected to be 9.3%.
Outside of the rate of foreign investment into Australia, we do not have to look very far beyond the ever increasing number of free trade agreements, or indeed the very presence of the G20 Leaders meeting in Brisbane to realise that we are very much tied up in the world economy. It is in fact an understatement of the reality.
However to single out foreign investment, which is not a new trend, for special treatment in the current state of the housing market, looks to deny the reality. If Sydney and other centres are to be seen as major players, so called ‘international cities’, then we need to accept that offshore buyers will be attracted to our residential markets. The investment and growth should create a stronger economy and more employment opportunities.
Fears about inflated prices, absentee owners and the creation of ethnic clusters look out of place in today’s world. However this does not mean that offshore buyers should operate outside the law and to date there is little evidence to answer that question one way or the other.
There is little doubt that the report issued recently does make some concrete points, not the least of which is an urgent need to improve reporting and enforcement by the FIRB. The move to civil penalties and fines for third parties, and the sharing of data between the Immigration Department and FIRB may also be well overdue and sensible measures.
However this will remain an emotive topic, and it’s also one where the question of ‘fairness’ surrounding the current rules will continue to come into question for as long as there is an incomplete picture of the market. Why the FIRB should have fallen so far short of the mark, may reflect badly on how different areas of government are being and have been under-resourced. And it is not only the FIRB.
Recently the ABS has come under the same sort of scrutiny, has been found wanting and also in a related area. When releasing the most recent housing finance figures the ABS has drawn attention to the fact that FHB loans may be under reported because not all FHB loans are tied to buyer grants and so some lenders figures may be wrong. While the FIRB recent enforcement might be in the view of the committee and community ‘grossly inadequate’, such failures need to be addressed.
The $70 billion residential construction sector relies on a stable flow of investment. To retain that level of investment we should not mix emotional questions of ‘fairness’ without reliable figures.
In 2012-13 real estate was the biggest sector of foreign investment into Australia, at $51.9 billion however, the majority of that was commercial real estate. We should also keep in mind that while China was the biggest source of investment at $5.9 billion in 2012-13, Canada invested $4.9 billion and the USA $4.4 billion, figures that I think show that we are part of a vibrant international market.
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Foreign buyers: Don't mix emotional questions of ‘fairness’ without reliable figures

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We are all living longer and that fact alone is having a big impact on the housing market as the population grows and ages.
However, it is the baby boomers that right now are shaping many areas of the housing market. As life expectancy among the boomers continues to rise, a more complex housing market is evolving.
There has been a 100% increase in the numbers of people living beyond 55 plus and a 150% increase in the numbers of people aged 75 plus. At the same time as the baby boomers age, their health has improved, and a longer life span is leading to pressures on aged welfare payments and health care costs. There are also longer term pressures building on how superannuation savings are managed and invested and how public pensions are funded.
As a result the traditional idea of retirement and retirement housing has shifted and continues to do so with some very dramatic consequences for the housing market.
Where and how the baby boomers live in retirement looks nothing like the retirement plans and hopes of their parents. The idea of moving to a sleepy coastal town, or traditional retirement village is being replaced with an appetite for lifestyles as diverse as living on a luxury liner (for the lucky few) or the more accessible idea of moving to a lifestyle resort with apartments and villas clustered around a golf course and access to a cinema, resort style pool and other amenities.
A key idea driving retirement living is the desire to stay connected. As people live longer and stay in good health they want to stay connected to family, the kids, the grand kids and lifelong friends, the idea of moving away from all of these connections has no appeal. Those living in retirement, or soon to retire, are no longer heading towards accommodation in clusters, they are aging in place and that means possibly staying longer in the current family home in metro, regional and country locations.
Existing homes are being renovated in greater numbers to accommodate their needs, by for example improving access to bathroom facilities and by reorganising accommodation so that stairs are eliminated.
Of course some people do move house, either trading up or down the price ladder and many new homes now feature a ground floor bedroom and bathroom. There’s also a continued trend towards boomers moving into CBD apartments, or apartments that a very well connected to local facilities. Sydney’s Double Bay and Bondi Junction are just two areas where this trend is evident. It’s all a part of being connected to the community and people's health care is also better managed when they are close to established medical facilities, a point not wasted on federal and state Treasurers.
More Flexibility Requires More Income
Recent federal budgets have started to directly address retirement issues, the retirement age is being increased, yes we are living longer, but we are also working longer by choice and by necessity.
As part of the housing equation income planning is now a central concern, people want to have more control when they retire and this is leading to a greater trend towards semi-retirement, with more lifestyle flexibility. By moving into retirement slowly, people are able to retain the family home longer, or plan their move to say a new apartment project, in an orderly fashion and possibly over a number of years. This is often an appealing solution for those who are asset rich, but cash poor.
If people do not want to sell their homes and move to fund part of their retirement income, staying local looks to be a long-term trend. Staying connected also means more boomers are looking for flexibility in their housing options and moving to semi-retirement may well have the impact of delaying the possible turnover of some existing housing stock. However it appears that it is quality of life that will drive retirement housing options. It is interesting to note that it’s the more highly paid who work longer and those that retire early usually do so not for financial reasons, but for health reasons as their ability to work is diminished.
Somehow that retirement cottage on the beach has lost its appeal, while a CBD apartment gains appeal and boomers weigh up how best to fund their future lifestyle and housing needs.
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Peter Chittenden

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