The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Property Development

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ASIC has commenced civil proceedings in the Federal Court over what the corporate regulator claims is an unregistered Perth based managed investment scheme providing unlicensed financial advice.

The scheme has raised over $11 million for property development purposes.

The proceedings are against Ms Monica Kaur, MKS Property Investments/Developments Pty Ltd (MKS Property), Paradise Property Group Pty Ltd (Paradise Property) as well as against Mr Sadu Singh, Mr Melvin Paul Singh and Ms Stephanie Lee.

“ASIC is concerned that Ms Kaur is providing unlicensed financial advice services and that she, together with the defendants, are involved in promoting and operating an unregistered managed investment scheme,” ASIC advised.

On 16 December 2020, ASIC obtained urgent interim orders:  

- restraining the defendants from removing their assets from Australia, disposing of their property, and freezing monies in their bank accounts including in Singapore; and

- preventing Ms Kaur, Mr Singh and Mr Melvin Singh from leaving Australia.

ASIC alleges the defendants raised at least $11.3 million from around 300 investors during the period March 2017 to September 2020 through MKS Property. 

It is alleged that investors were encouraged to establish a self-managed superannuation fund (SMSF) and invest part or all of their SMSFs or other funds into property investments and developments set up by MKS Property and/or Paradise Property. 

These funds would be pooled together to invest in property development.

“ASIC alleges the defendants used investor funds, at least in part, for their own personal use and to pay returns to investors,” it claims.

On 17 December 2020, ASIC, with the assistance of the AFP, executed search warrants.

The orders are to remain until February 15.

ASIC’s investigation is continuing.
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ASIC alleges the defendants raised at least $11.3 million from around 300 investors during the period March 2017 to September 2020 through MKS Property.

jchancellor

ASIC launch Federal Court proceedings over alleged unlicensed $11.3 million property development scheme

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Balfour Group, the Melbourne-based high end property developer, has taken out the inaugural Best Boutique Property Developer in Australia award at the Property Guru Asia Property Awards.

Balfour, ran by owner and architect Steve A'Beckett, were judged on their One Adams Street development in South Yarra (pictured above and below), Armadale Residences on Armadale's Horsburgh Grove and 1683 Malvern Road in Malvern.

The independent judges said Balfour Group’s impeccably designed and forward-thinking projects provide a glimpse into the future of residential development in Australia.

"Their residences impress with glamorous interiors, generous spaces and top of the line health, wellness and automation features, raising the bar high in luxury and sustainable development.”

It was One Adams St which really caught the eye of the judges.

<img alt="" height="2235" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/balfour_one_adams_2.jpg" width="2000">

A'Beckett says that in the case of One Adam Street, their objective is always to ensure our design is a real show of strength, detail, permanence, luxury and style.

"You don’t get many significant buildings constructed out of brick anymore as it is laborious and therefore expensive. However, it is a beautiful material that is creating a sense of monumentalism. We are creating a legacy building that will further enhance South Yarra’s rich architectural heritage 100 years from now.” 

Balfour had Rob Mills Architecture design the boutique project of seven apartments.

"One Adams Street Apartments sculptural form challenges the senses and enlivens South Yarra's streetscape," Rob Mills says.

<img alt="" height="1383" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/balfour_one_adams_3.jpg" width="2000">

"Each has a distinct character responding to the shape of the site, the built context and the surrounding views. In this instance, a long, rectangular site easing into a tapered corner becomes the driver for a strong sculptural building, housing seven luxury apartments including a spectacular penthouse.

"The scale and form of the building is in keeping with the adjacent Art Deco apartment blocks and a domed synagogue, while views of Fawkner Park help the building extend its visual reach and make connections with the landscape capturing space beyond the built form."

There was also plenty of interest from the judges in the two residence development in Armadale, with each 538 sqm property asking $12 million.

Each whole floor residence is set to have two separate studies and two living spaces.

“We are committed to creating breathtaking developments that are best in their class," Beckett says.

"Our success is evidenced by our extensive track record delivering beautifully designed buildings which integrate harmoniously into their exclusive urban environments.”

Balfour Development Group is a property development Company founded in 2000 by property development industry veteran Stephen A’Beckett.
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The independent judges said Balfour Group’s impeccably designed and forward-thinking projects provide a glimpse into the future of residential development in Australia

Melbourne-based Balfour Group named Best Boutique Developer at the 2020 Property Guru Asia Property Awards

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Last week I was assisting a client with her dual occupancy construction finance. We have Development Application (DA) and Construction Certificate (CC) consents and the builder has issued their Building Contract. The bank now has all the documentation required to unconditionally approve her construction finance.
They had conditionally approved her loan a few weeks earlier after verifying income and assessing serviceability and all the other stuff they do after you sign a mountain of loan docs. The next step was for the bank to value the two dwellings and then they could finalise the construction loan.
Her bank did an "As if Complete" valuation. This is also known as a Tentative on Completion valuation. It's when the bank value the project before it's constructed but based on how they think it will be completed.  lf it's more than one dwelling - a dual occupancy or multi unit project - they look for a value of the property '"in one line". This means not subdivided. If the bank had to sell the dwellings all on the original title, what would they get for them?
The number one, massive, biggest, fattest, most frustrating issue with this type of valuation  is that there are generally NO sales references. Who in their right mind would sell in one line if given the choice of making far more profit by subdividing?
When there are no sales references in one line, it is up to the valuer to determine how they discount the end values if the dwellings were on their own title.  Valuers must take legal responsibility for their opinion. The valuer needs to cover themselves in the instance that the bank may need to fire sell the properties together on one title of land.
The process of subdivision after building works are complete, whilst not complicated, can take a number of months to get to the registration stage. Yet the builder's final payment is due on completion of construction.
The Australian Property Institute publish a very interesting document on valuation standards. It's 395 pages long. That's how complicated the valuation process can be.  It covers valuations for different purposes such as market, mortgage and loan security, rating and taxing, for compulsory acquisitions, for assessing rental value, for property plant and material, for insurance purposes and to use in financial reports. 
In this instance due to no direct sales the valuer will possibly use a gross realisation of the dwellings assuming they are subdivided and on separate titles and then deduct a profit and risk factor, holding and selling costs to arrive at their valuation figure. 
They may also take into consideration a capitalisation of the gross income and use an acceptable market capitalisation rate or cap rate. 
In my opinion, without actual sales references of properties sold in one line, the valuer will be super conservative in their calculations and hence, a low On Completion valuation may be received. This is one of the perils of construction finance and so a buffer of cash should be put aside in case the construction loan requires supplementing. 
Applying for and then finally receiving approval of, construction finance can be one of the most lengthy phases of a development project. It can take longer than obtaining the DA consent and in some cases, has taken longer than the construction phase itself!  So be careful to allow, not only enough extra funds, but also time for your construction finance.
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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The complicated process of valuation: Jo Chivers

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A survey by researcher Michael Matusik has confirmed what many in the real estate industry knew or suspected – that developer claims about sales in their unit projects are often a pack of lies.
He surveyed 10 recently-completed projects with a combined 1,500 apartments in the Brisbane inner-city market and found that sales rates were, in most cases, agonizingly slow - quite a contrast to the claims of “selling fast”, “few remain” and “50% sold within the first month of release”.
He says many claims made by developers and marketers are so outrageously false, they should be investigated and prosecuted by the relevant authorities.
His conclusions: “The sales rates promoted in many new apartment advertisements are optimistic at best. In some case, there’s outright lying, which should be challenged by ASIC and the real estate institute.”
Amen to that. Project proponents who falsely claim to have made high levels of off-the-plan sales often goad gullible investors or home-buyers into hasty action, for fear of missing out. These buyers often end up with dud investments, over-priced and falling in value.
I get frequent emails from investors, usually impressionable young people, who are being pressured by accountants, solicitors or financial advisors into buying off-the-plan apartments in the inner-city suburbs of our major cities. 
They are bombarded with claims of high sales rates, never-to-be-repeated offers and the prospect of windfall capital gains. They’re under heavy pressure and highly stressed, because they’re afraid of making a decision they’ll regret. Many are unaware of the massive commissions their “advisors” will receive if they buy.
It’s the dirty underbelly of the property industry that regulators seem powerless to eradicate. But a clampdown on false claims about sales rates as a way of enticing buyers would be quite easy for ASIC or the Office of Trade Trading to police.
If Matusik can conduct a revealing survey, surely the authorities with their much greater resources can do the same or better.
His survey found that the true sales rate among the surveyed developments was just three apartments per project per month. The results ranged from one to seven sales per month per project, but the average was three sales per month. It took most of the projects 15 months to sell enough units (i.e. over 60% of the project) to start construction.
“The shortest time period to sell out a project was 21 months, while the average time was just over three years,” Matusik said. “Several projects took over four years to sell out.”
Amazing to consider these results, against frequent claims by project proponents of having sold half the units even before the launch of marketing, or having sold out most of the project in the first weekend of marketing. Often an expression of interest is classified as a sale.
Media reports such claims as gospel, when often they’re shameless fabrications. Journalists don’t challenge anything anymore.
Matusik says: “We need some clear rules. For mine, an off-the-plan sales can only be reported as ‘sold’ if the contract is signed, unconditional as to finance and the stipulated deposit has been paid.”
This issue will get worse before it gets better, given the upcoming tsunami of new apartment projects in Melbourne, Sydney, Brisbane and Perth as our major cities head into an era of over-supply.
TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can  <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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terryryder-YECXbqmri2

Over supply ahead as tsunami of new apartment projects hit Melbourne, Sydney, Brisbane and Perth: Terry Ryder

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So you’ve decided it’s time to embark on a property development. Great stuff – you’ve made the first of many, many, many decisions for your exciting development journey.
So here are some more decisions to make.  The very first question you’ll need to answer is, ‘what is your development strategy?’
It’s a good question that only you can answer but it also leads straight into a whole list of more crucial questions:
1  Budget – cash available and how much can you finance?
2  Risk profile – do you have a low or high tolerance for risk?
3  Time – how much time do you have available to run your development?
4  Knowledge – do you understand the different development processes?
5  Skills – project management, negotiation, communication, patience 
Once you have answers to the above, you can then work out your development strategy.
Your strategy may include:
<ul>
<li>Land Subdivision</li>
<li>Renovate and add value to an existing dwelling</li>
<li>Dual occupancy or low density development</li>
<li>Renovate an existing dwelling and also build new dwellings on the land</li>
<li>Medium density development</li>
</ul>
The development strategies above will all have a different impact on your crucial questions.
Let’s start with Budget. If you are on a low budget then you may choose a house renovation. For this strategy you’ll need to have lots of question 3 as house renovations can be very time consuming.
If your budget is higher, then you may choose a low or medium density project. This choice of strategy will mean you’ll need a high tolerance for number 2 and lots of number 5.
Whichever development strategy you choose; you will need some help. Now it’s time to put together your team.
Who do I need on my Development Team?
<ul>
<li>Property Specialist Accountant &amp; Solicitor</li>
<li>Finance Broker or personal banker</li>
<li>Surveyor</li>
<li>Architect/draftsperson</li>
<li>Builder and other tradesmen; plumber, electrician, carpenter, landscaper</li>
<li>Consultants such as an engineer and private certifier</li>
<li>Quantity Surveyor</li>
</ul>
And if you are short on crucial question number 5:
<ul>
<li>Development Project Manager who will guide you through the entire process</li>
</ul>
Congratulations, you have now answered the crucial questions, decided on a development strategy and built your development team. The next step is to find your development site; you’ll find this raises a whole new series of questions. Have fun!
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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5 crucial questions to answer before starting your development: Jo Chivers

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I was interviewed for a great story in one of the property magazines, the article was called Keep and Reap and it examines the pros and cons of holding onto property after you finish developing it.
One of the biggest things to consider before you start a development is entry and particularly exit costs - if you are developing to sell.
Around the same time I received a call I had from a guy called Dave.  He said ‘Hi Jo, can you help me with a dual occupancy project’.  To that I replied...’sure Dave, we’d love to. Tell me a bit about your strategy and what you are hoping to achieve from a property development’. 
'Well, my wife and I want to turn over a few developments, you know...complete one, sell and then use the profits to go again. Our aim is to use the proceeds to pay down the mortgage on our principal place of residence and keep investing’.
Dave certainly has a very good plan. As property development project managers, we are not qualified to give accounting or financial advice, but what I do like to check with anyone making this kind of enquiry is that they understand what selling or exit costs are involved.
Dave said he understood there’ll be agent’s selling commission and marketing costs to sell the new villas, we might have to pay some Capital Gains Tax and that’s it I think’. He said.   
My reply...’Are you sure Dave?’
If you take a look at the exit costs, then you may think twice about selling on completion, especially if it’s a small development like a dual occupancy.
In the Hunter Region of NSW where we manage developments for our clients, we can typically create around one hundred thousand dollars in equity on a dual occ project within twelve months. This sounds like a lot of equity to create and it is...if you are holding the properties you’ve built.
By holding on completion you'll not only get the benefits of depreciation and higher than average rental returns (everyone loves to rent a brand new property) but some clients choose to refinance and by doing this they can access some of the equity that’s been created through the development process.
But, if you are looking to sell on completion, then there is a whole list of costs you need to consider.
The big one is GST and as I explain this to Dave, I highly recommend he checks this out closely with his accountant.  GST is applicable when you sell new property, so Dave would need to ensure he pays 10% of his selling cost to the government. If he is not registered for GST, he can't claim back the GST he's paid over the life of the development so he's essentially losing 10% on his sales. However, if he holds the properties for five years, they are no longer deemed new and no GST is applicable.
Finance costs are another cost to consider. Dave needs to check with his lender what fees and charges may be applicable when he sells, these may include a prepayment fee, settlement fee, early exit fee or Government mortgage discharge fees.
There will be legal fees for your solicitor to prepare Sales Contracts and manage the conveyancing for you.
In some instances, Land Tax may also be payable on a property that is being sold.
Then of course, the sales agent's commission, marketing costs and perhaps auctioneer costs.
Also consider the holding costs. During the sales process you probably won't rent the villas and they'll be sitting empty on a fully drawn construction loan.
One of the advantages to holding and renting the properties on completion is that the interest you pay during the development process is tax deductible. However, if your intention is to sell on completion then you lose this important deduction during construction but also during the selling period.
I recommended Dave have a meeting with his accountant to make sure he understood the implications of selling.  A few weeks later, he called to tell me he's switched strategy and wanted to hold onto his properties. One of his reasons was to take advantage of the higher depreciation benefits and he wanted to build a property portfolio. His accountant showed him just how much income tax he could save himself as he was in a high tax bracket.
It wasn't long before we had found him a great site in Newcastle with a potential gross yield of 7%. This strong yield will make it easier for Dave to hold and continue on his property investment journey.
By going through the exercise of weighing up the pros and cons of holding, it helped Dave realise that if you are going to the trouble to develop property in the right location, you may as well hold to reap the immediate and future rewards. 
 
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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Is it really worth selling on completion? Jo Chivers

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Last week one of my project managers used an interesting story to illustrate a point about being patient when developing property.    
Rich is a country lad brought up on a farm in rural NZ… no it wasn’t a sheep station. Lucky for me, he decided to ‘cross the ditch’ and settle in Australia to make his fortune in developing property in the Hunter Region of NSW. He was working with one of my builders when I discovered his expertise. It was some time later that we ended up working together. 
The message from Rich’s story was simple – “Pushing too hard at the wrong time can cause problems rather than solutions.”   
The message came about whilst discussing how we could fast track lodgement of a particular Development Application.  As project managers I knew we were doing all we could.  I also knew that the other people involved; our builder and engineering consultants, were too.  We wanted to illustrate this to our client.  And then Rich sat down with a steaming cuppa in his hand and spun me a yarn.
I thought I’d share his tale because it made sense, even to a city gal like me.  Hope you enjoy it as much as I did...
Rich:  On the farm we never had a dog to move the cows into the milking shed. But our neighbours did and they were always in a hurry to get the milking done for the day. One day I asked Dad; “Why don’t we have a dog to chase the cows like our neighbours?” 
He responded by saying, “Son, when a dog chases cows, by the time they arrive at the milking shed, they’re all nervous and tense because that dog has been snapping at their heels, barking and generally causing them grief. Because of this, those cows never milk for long and as a consequence, they don’t produce much milk.”
Rich explained that what those stressed out cows did was to produce a lot of crap. The cow manure mounted up quickly and ended up covering the shed while they stood waiting to be milked.  
The neighbours with dogs always finished milking earlier than us, but spent more time cleaning up their milking shed at the end.  They produced very little milk. 
When it was all washed up and done, we always finished around the same time as the neighbours. Although our cows milked longer, we had less to clean up and we always produced a lot more milk. 
Relating this back to our property development situation, the bottom line was if we did things properly and not rush the procurement and planning stages of the process, the delivery and close out will move along smoothly and end up producing a better, more profitable ‘on time’ result. 
My take out of Rich’s yarn: There are times for snappy dogs, but use them sparingly and intelligently. 
Property Bloom understands the need for speed, as do our builders.  At the end of the day we all want to complete the project quickly.  But what we really want to ensure is a development that is well planned, delivered efficiently and on budget - and hopefully with very little crap to clean up at the end!
 
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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Milking the property development process: Jo Chivers

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Getting started on your property investment journey can be daunting. I'm reminded of this when I hear from people who haven't yet been able to take that step forward. 
It's something that comes naturally to me now after sourcing many properties and development sites for our Property Bloom clients but I can still remember very clearly my first investment property purchase. Man, was I nervous!
Some people seem to be able to make a quick (yet still educated) decision and others 'think' about it for weeks, months and sometimes years. Being decisive is a great skill to have. 
I had a call the other day from a lady who said she'd been following my articles on Property Observer for years but couldn't ever get to the point of making a decision on how to buy her first property, where to buy it and how much she should spend. 
In this time, she watched the Sydney market rise and rise until it was virtually unviable to her as an investment option. Then she was kicking herself for not getting in earlier.
The one thing I wanted to communicate to her was to "take small steps".  Break down the process so that it doesn't seem so overwhelming. 
Start with your finance. How much can you borrow and service and how much do you feel comfortable borrowing? Once you have a budget then you've taken the first step. 
With that budget in mind, look for locations with a median price point around the same as your budget. Choose a few different suburbs in this location and then spend time in these suburbs. Drive around, hang out in the shopping centre, study the people who live there. Strike up conversations and ask about what they love about living there... and if  there are any streets they wouldn't live. What are the schools like and are there good community facilities like sporting fields, skate parks, playgrounds, places for families to enjoy. 
Once you get a 'feel' for the area and the people living there, then start some more detailed due diligence on the local economy, job opportunities, infrastructure projects, council's long term plans for the area, population growth, recent past sales, rental returns and vacancy rates. Attend auctions and talk to real estate agents about what tenants are looking for.   
There that's the next step taken, and all of a sudden you've become very knowledgeable and narrowed down the suburb where you'll invest.  Follow the sales market in the streets you like and you'll soon know what a good deal looks like. 
Remember to look for development potential in a property; can you add value to it either now or in the future?  Search for large block sizes, dual access points, houses you can add a bedroom or upgrade the kitchen or bathroom to increase the rent.  Property located in a medium density zone means you'll have more options later to develop it. Find property that is close to shops, on public transport routes and within a short drive to the central business district or to the closest city.  
Finally, get ready to move quickly. When you find a property that ticks all the boxes and with a finance preapproval under your belt, you can confidently make an offer.
Don't be disappointed if you miss out as all this adds to your experience and there will be other properties that come up soon. By going through this process you'll establish relationships with locals and agents and soon that first small step will lead to an investment property purchase. 
Jo Chivers is Chief Executive Officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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Small steps will lead to big things: Jo Chivers

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Hi Margaret,
My husband and I currently own a house in Macarthur (ACT) and are in negotiations with our neighbor to buy their house next door, before they move to Tasmania next year. The houses are side-by-side and at the end of a cul-de-sac.  
I'm just wondering what our first step would be if we decided to merge the two blocks of land and sell to a developer for them to build multiple dwellings. We don't want to manage or build ourselves, we just want to sell them as a package.
How do I know if this allowed in our suburb? Is there a website I can look at or someone I can contact?
Kind Regards,
Lisa 
 
Hi Lisa,
Your first port of call will be to the local council who manages subdivisions in your area. You will need to talk to their town  planning department.  The council will have a town plan in place which will be governed by the territory’s planning scheme. They will be able to tell you about the rules and regulations surrounding subdivisions, or in your case, land boundary changes in your area.
The reason it is important to start here is because you want to know exactly what you would be left with in the event that such a boundary change (that is the combining of two lots) is allowable. You need to know how many subsequent blocks a developer can achieve from this boundary change.  If they can only achieve the two blocks which you originally had, then there is no benefit to the boundary change and your blocks would be just as easily sold separately as they would combined as one.
Once you know these details you then have a choice: You can either simply offer your two blocks together for sale as a package, leaving the responsibility for a boundary change up to the potential developer, or you can effect the boundary change yourself, which may make the two blocks more valuable.  
You should consult an independent town planner, one who works in private practice, to quote you on the potential costs of having the two blocks combined, including his fees and all government charges, and also consult with a local real estate agent to establish whether or not spending this money would result in a suitably increased sale price. 
If you wanted to go all the way you could then do the subdivision into the allowable number of blocks, but as you have seen, past advice I have given in this column has outlined all the potential risks and costs of doing that, and you have said you don’t wish to incur those.
I will point out to you that one of the difficulties you face is in working out who should get what. If you offer them for sale together, with a condition that both must be purchased, but you price them separately, it’s easy to see how much each person should get. But if you price them as a package, then it’s harder to work out whose property should get the most unless they are identical properties of identical size. In addition to this, you would both have to agree on what you get as a final price, and also on the strategy you would follow in the event that one of you had an offer for their house alone that they want to take.  
Under these circumstances, tempers can flare and relationships can break down. These are all the kinds of issues you must think about before entering such an agreement, and it’s a good policy to think about all the potential problems, write them down and agree on a solution before they arise.
Have a property question?        <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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Ask Margaret: Merging blocks to create multiple dwellings

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As I finalise the Project Analysis on one of our last development projects for 2016, I've realised we've broken our equity creation record for a dual occupancy project.
We've manufactured just under $200,000 in equity within a year which represents an 18% return on investment (ROI). 
This wonderful client is now onto his third project with Property Bloom and so I'm very happy we've been able to deliver this amazing result for him, it's a fabulous Christmas present for our client but also for us. 
This was one of those projects where financially, things just went right. We started with a build estimate and with every update of our builder's tender the project costs dropped. We ended up with an actual construction cost of just under $40,000 less than we'd originally estimated. This includes Torrens title subdivision costs so that our client ends up with two x three bedroom dwellings each on their own title. 
We secured the development site in Newcastle in an estate that ticked all our  'great location' boxes. It has a high proportion of owner occupiers, strong sales and rental demand, community facilities including primary and high school, sporting fields, bike paths, picnic areas, children's parks and close to the local shopping centre and on the bus route. The location also allows quick drive time into the CBD and onto the major arterial roads.
We were able to prepare plans and other documentation required for the Development Application (DA) quickly and have it lodged with Newcastle City Council even before our client settled on the land. This saved on holding costs. However, the DA processing time was disappointing. It took 16 weeks, although I have to add this included Christmas, so you could say 14 weeks. Still, this is a long time. Our best DA processing time with the same council is two weeks. It all comes down to the town planner we are allocated and how efficient they are.  
The construction time was five months from the site cut date to Handover of a full turnkey product. Again, we've done better but I was happy with this result considering there is a shortage of building trades right now in the Hunter. 
Of course there was a few unexpected hiccups, like two windows that needed to be replaced after the internal linings were finished, we realised they were not centered in the area we wanted them to be. Our builder quickly had them replaced. But this didn't delay the project, just added some extra work for the builder. 
Our client will enjoy strong depreciation benefits from his new properties and a 6.5% gross yield. 
As we move closer to closing the door on 2015, it's nice to finish the year on a high. We'll be back for more fun and games in 2016. I hope you've enjoyed our stories this year, wishing all our readers and the wonderful people at Property Observer  a safe, relaxing and happy Christmas.  May 2016 bring you much joy and happiness, and a maybe a shiny new property development!
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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