Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Property Development

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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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jochivers-wq5Bp59R5a

The complicated process of valuation: Jo Chivers

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The contracted buyer of the $16.85 million Soul penthouse on the Gold Coast has been ordered to pay the developer $14.1 million - but won't get to keep the unit.
Industrial transport entrepreneur Charlie Caltabiano was sued by receivers for Juniper Property Holdings, developer of the Surfers Paradise landmark.
Queensland Supreme Court judge David Jackson declare that the 2007 deposit together with interest accrued was to be forfeited to the plaintiff.
The defendant was ordered to pay $14,132,246 including interest of $1,471,509 over the failed Soul deal.
Caltabiano was at the Gold Coast having a drink in April 2006 when he saw a display for Soul apartments.
He spoke to the salesman, Justin Daniels and noticed the four level penthouse was priced at $16.85 million. 
As constructed, the penthouse had a total floor area of 1,043 square metres, divided between 519 square metres of internal living area and 524 square metres of balcony or roof deck outdoor area.
After he opted not to proceed to the 2012 settlement the penthouse sold for $7 million<a href="/news/soul-surfers-paradise-penthouse-auction-results-in-7-million-sale-to-tony-fung"> at McGrath auction last year to businessman Tony Fung</a>.
The Juniper receivers claimed Mr Caltabiano, who paid a $1.68 million deposit on the luxury four-level apartment, breached the contract when he failed to settle on it three times over two years.
The plaintiff claimed a declaration that the deposit, together with interest accrued, was to be forfeited along with damages for breach of contract in the sum of $8,817,552.
The judge rejected Mr Caltabiano’s claims he reneged on the deal to buy the penthouse because the sellers misled him over its value.
Mr Caltabiano claimed the seller told him the Jade penthouse had sold for $20 million and that the Q1 penthouse sold for $7.8m but had half the floor size of the Soul penthouse — both sales that were untrue.
The judge said taking the other sales claims at their word and without any other research about the apartment’s value was “incredible”.
“It is commercially illogical and inherently improbable that in deciding upon a $16.85 million purchase the defendant would not have obtained such advice,” <a href="https://www.propertyobserver.com.au/https://www.austlii.edu.au/au/cases/qld/QSC/2016/5" target="_blank">the judgement read</a> "because of reliance on the alleged representations made by the plaintiff’s sales consultant comprising comparisons with properties that the defendant did not know anything about.
'This is where the defendant’s story is incredible," the judge noted.
Mr Caltabiano founded Force Corp, that rented out equipment like cherry pickers and hydraulic lifts in 1994, which by 2007 was a $100 million company.
The Gold Coast Bulletin reported the business was bought by Coates Hire last year.
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jchancellor-FAypfDUnLy

Juniper receivers win Soul penthouse default settlement court battle 

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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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Finishing the year with a bang: Jo Chivers

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<img src="/images/2015/12/16/Holdencapital_banner.jpg" alt="" width="617" height="130">
SPONSORED POST
The lure of a pot of gold at the end of the rainbow certainly attracts many property developers. The promise of large tranches of cheap off shore funding with minimal strings attached and for no particular reason they have chosen your project to invest it in.
Who could resist? Often, when it all seems too good to be true, it usually is. The finance industry also has its share of doubtful operators who specialise in taking large upfront fees while offering developers the promised pot of gold, and while these overnight finance ”experts” have a case to answer, I struggle to sympathise with the developer who heard what he wanted to hear and proceeded to run head first into a brick wall under his own steam.
The combination of the developer’s entrepreneurial spirit, optimism and confidence that they have the skills to deliver the project while overcoming all the potential obstacles, gives them the courage to borrow millions of dollars to turn a piece of land into something the market will buy. And those qualities are all admirable and contribute to their successes, particularly when you consider that the majority of Australians will spend their whole lives in employment, reliant on a weekly pay cheque and that less than 1 on 4 take the leap to start their own business.
However, of all the business opportunities that you could take on, like buying a franchise, leaving the big firm and starting your own consultancy, or opening a café, only a select few take on the risks of property development. Risking substantial capital and borrowing significant debt just to make a pre-tax profit of between 18-25% on the total funds utilised! Frankly, I take my hat off to those property developers because there are a lot of obstacles to overcome and a lot of variables that can go either way.
They say “the harder you work the luckier you get” but it is this innate sense of optimism peculiar to developers that seems to enable them to take on these levels of risk and more often than not win. Unfortunately sometimes that optimism goes into over-drive or is born out of naivety and many developers live by the mantra “think big and multiply” only to hit an even bigger wall.
The problem with all this optimism/naivety is their reliance upon those factors at play outside of their control, and the amount of energy and time spent chasing those rainbows. Imagine if they put that energy and time into the core elements of their business creating a better product and the mechanisms to sell and deliver it?
Having seen quite a few developers chase those rainbows I thought about what in particular motivates an otherwise smart person to throw $20,000 - $50,000 in non-refundable application fees at a so called expert finance broker who has no fixed office address or one who has just appeared in town with a “cheap offshore funding” offer, neither of them with even one reference from a happy customer.
The only answer I could come up with is that ultimately they want “Dumb Money”, that in return for a modest dividend/profit share/interest rate doesn’t ask questions and leaves them to largely do as they please with the funds. But the truth is that if their project was that good and the returns they were offering truly reflected the market risks, a local investor would be more likely to open their chequebook.
What we constantly observe is investors looking to max their return while taking as little risk as possible, which is only natural, while the developer chases large chunks of naïve money that they can manipulate to only provide low returns for what is actually a higher risk than they appreciate. While this reflects typical market forces at work, I question the level of the so-called sophistication on both sides of the equation.
Some people find satisfaction in making money through others losses, but a zero sum game where one party loses and other wins happens all too often in business, including development. As Henry Ford apparently said, “a business that makes only money is not a good business’.
I don’t believe that it is too idealistic to think that deals can be structured in such a way that both parties can win. While Mr Developer can argue that those investors would only otherwise be getting 2%pa in the bank, the fairness comes into it when you compare the risk of that return versus the risk their money is exposed to and the reward being paid.
I have made the case in a previous commentary that developers need to work harder on ensuring that they secure the services of skills consultants/advisors in those areas where they lack the necessary expertise in order to ensure they achieve their targets and this is another instance where too much energy is expended on saving a cost that is disproportionate to the projected outcome.
We are lucky that in Australia there is quite a deep market of passive investors willing to take equity positions on development projects. So it makes you wonder what developers could achieve if they used the right consultants and redirected their energy/time into enhancing their core skill sets, how much more successful their business would be in 5-10 years from now?
This is not to say that you should just accept the finance framework that is offered to you by your local bank manager. The HoldenCAPITAL business is based around pushing boundaries on finance to optimise project profits, we certainly don’t recommend that you don’t base your whole business model around that elusive pot of gold sitting at the end of the rainbow.
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arrange construction finance and invest in projects through their equity fund, Queen Street INVEST. To discuss your project finance requirement please call (07) 3171 4200 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au/" target="_blank">here</a>.
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Chasing rainbows, overseas funding and other unicorns: HoldenCAPITAL

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A mixed-use development property in west Melbourne has sold to a local investor at auction for $6.8 million.
The <a href="https://www.realcommercial.com.au/property-land+development-vic-west+melbourne-501776166" target="_blank">55 Walsh Street</a> property comprises a three-level office building with multiple tenancies currently returns $208,000 per annum gross. 
There are some vacancies as well, hence the potential to increase income.
The sale through Anthony Carbone of CVA Property Consultants represents a rate of $3,269.23 per metre square.
The building is in a mixed-use zone allotment of 695 square metres, allowing for development including but not limited to office and residential (STPA). 
It is close to Queen Victoria Market and Flagstaff railway station.
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j.ballantyne1990-6AQqhLzZaK

West Melbourne office building fetches $6.8 million at auction

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Architectus has been awarded Auswin TWT’s mixed-use development project at 495 Harris Street, Ultimo in Sydney.
It followed a design competition chaired by acclaimed architect Tony Caro. 
The 5,322 square metre site is located next to the Ultimo Community Centre. It was the headquarters of Tabcorp, one of the last substantial development opportunities in the area.
There will be a multi-layered building that steps down from nine-storeys along Harris Street to six levels facing Bulwara Road with a likely total of 213 apartments ranging from studios to three-bedrooms, including two-level terraces with street level access.
There also will be ground floor retail/commercial space and two basement levels for vehicles and bicycles. 
The jury was impressed by Architectus’ contemporary interpretation of the site’s semi-industrial history.
It includes a large courtyard and a purpose-built pedestrian laneway.
It also features an innovative series of vertical masonry ventilation pipes which draw hot air in from the courtyard and expel it naturally, helping the building to ‘breathe’.
The director of urban design and planning with Architectus, Michael Harrison, said his firm had previously been engaged by a group of local residents who had been initially concerned that a new building on such a prominent site could impact their amenity.
“Armed with this knowledge we believe our scheme reflects many of their wishes for a development that doesn’t overpower the neighbourhood nor compromise their privacy, and which minimises the chance of overshadowing their properties,” Harrison said.
The upper levels are designed to ‘float’ above the traditional warehouse base.
The Harris Street site was originally owned by the Harris family who were the dominant landowners in the area for more than a century. Bushells Tea purchased the site in 1938 and built a four-storey warehouse to store its produce.
In 1964, the newly founded Totalizator Agency Board (TAB) acquired the property as its headquarters and nerve centre for its betting business. In 2004, TAB was taken over by the Victorian-based wagering and media company Tabcorp, which 10 years later sold the property to Auswin TWT.
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Architectus to design $300 million Ultimo development

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 <img src="/images/2015/12/2/Holdencapital_banner.jpg" alt="" width="551" height="116">
SPONSORED POST
Just what are the nine must-ask questions you nee to consider before you enter a joint venture?
1. “Needs V Wants?” – A successful Joint Venture or “JV” is typically formed on the basis that the JV parties are contributing complimentary skills and or value to the alliance. The question for the Developer to ask himself is are the skills/value that the other party brings to the deal i) needed; and ii) cannot be better satisfied by other means such as paying an external consultant. A JV partner generally comes at a price such as an agreed profit share based on the contributions each party makes to the “Project”, which results in the Developer giving away a large percentage of his profits. 
2. Trust – What do you know about the party/ies you are about to enter into a JV with? Have you done business with them previously or do you know other Developers who have and if so, what was the outcome? How did they perform against initial expectations? Past performances can provide you with a valuable indication of what to expect in terms of behaviour, work ethic, and integrity. Its just as important to undertake thorough due diligence on a potential JV partner as it is on the metrics of the project. 
3. Incorporated or Contractual JV? – There are pros and cons for both, so its important to understand the features of each and decide which best suits the participants and the project. Appropriate legal and taxation advice upfront is strongly recommended; i.e. the Corporations Law allows parties to look behind the corporate structure of an incorporated JV and attach liability to individuals. On the positive side, the transfer of an interest in an incorporated JV can be done via a simple transfer of shares, which is useful where a JV evolves and needs to take on a different shape from that first envisioned. A contractual JV may be a quicker and simpler structure to establish, but documenting it can still be quite cumbersome. There are potential tax benefits in a Contractual JV allowing tax losses to be affectively offset against income outside the JV, while an Incorporated JV quarantines them within the incorporated entity. Again, it is recommended that the parties seek independent legal and taxation advice having regard to their respective interests, prior to establishing the JV.   
4. Decision Making – It is important to understand and agree how key decisions will be made. In some JV’s decisions will be made by one party only (where the other parties are considered “silent partners”), whereas in most JV arrangements, decisions are made jointly. It is important to establish from the outset, who will be responsible for making key decisions that affect the project.
5. Who will do what? -  a simple way to determine each parties responsibilities is to list the tasks/responsibilities that need to be completed throughout the development process and assign a lead role and a peer review role. A suggested way to simplify this is detailed below: 
<a href="/images/2015/12/2/Screen%20Shot%202015-12-02%20at%202.17.58%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/2/Screen%20Shot%202015-12-02%20at%202.17.58%20PM.png" alt="">
This is obviously a simplified list, but by allocating responsibility for the macro tasks, that party is then responsible for allocating the appropriate sub-tasks with peer reviews undertaken by the secondary party to ensure compliance as a double check.
6. Tracking Performance – From the outset it is important to establish clear performance targets for all JV parties and then ensure that these measures are tracked and reported. Regular meetings between the JV parties should be scheduled and performance against the agreed measures should be discussed to ensure the project remains satisfactorily on track. Identifying poor performance early and acting to resolve any issues is critical to the projects success.      
7.Profit sharing – It is critical that the distribution of profits and risks borne fairly represent the contributions made by each party based on their contributions - skills and financial. These contributions can change over the life of a JV and it is therefore important that there are agreed mechanisms to allow changes to the profit distributions to reflect those changes. Typically, this occurs where there is a requirement for subsequent equity contributions, particularly where only one party has the capacity or will to participate. The agreement should contemplate this and provide for appropriate adjustments to entitlements to reflect the change in contributions/risk. Poorly structured agreements inevitably result in a dispute situation and if a party is not adequately incentivised, this could impact their performance and in turn the project success. 
8.Disputes – All agreements should include appropriate dispute resolution clauses to ensure the project is not stalled where an impasse is reached on key issues. To avoid the cost in time and money, it is important to clearly articulate the dispute resolution procedures and most good JV Agreements will include a suite of tailored clauses. Typically, they will provide for a number of pre-agreed outcomes but also where a critical dispute cannot be resolved using those clauses; the agreement will should either have a deadlock or mediation process. Ultimately, if mediation fails it could result in expensive litigation, which is to be avoided at all cost. 
9.Ending a JV arrangement – Unlike a “partnership” a JV is not a legal entity and is typically an agreement between two or more parties to form a strategic alliance for the purpose of a single or specific number of projects. Therefore the dissolution of a JV is reasonably straightforward, doesn’t typically require any further legal documentation and will end on completion of the project/s. This is why JV’s are quite common in property development as they can be formed for the purpose of a single project, should contemplate various exit solutions to deal with situations where the project fails meet the original expectation and allow for the JV parties to move on at completion. 
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arrange construction finance and invest in projects through their equity fund, Queen Street INVEST. To discuss your project finance requirement please call (07) 3171 4200 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au/" target="_blank">here</a>.
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Nine must-ask questions before you enter a joint venture: HoldenCAPITAL

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Johnson Property Group has received approval to develop a tourist precinct within its $388 million masterplanned marina community, Trinity Point overlooking Barden’s Bay in Lake Macquarie.
The NSW Planning Assessment Commission has approved the group's plan to modify its earlier approved Masterplan Concept to incorporate a 5-Star hotel/commercial precinct and an apartment precinct which includes short stay and residential apartments.
“This will be a key economic driver for the local community and a major new tourist destination for New South Wales,” said Keith Johnson, CEO of Johnson Property Group.
The hotel precinct is proposed to comprise a 5-star hotel, a resort-style pool, spa and gym facilities, a 200-seat restaurant and a cafe. 
The apartment precinct is expected to comprise 250 apartments comprising of a mix of residential and short stay units, with car parking.
The company received development application approval to build the first 94 berths of a proposed 188-berth marina as part of the masterplanned community earlier, to be called Trinity Point Marina.
Trinity Point spans 23 hectares and is located in Lake Macquarie, an hour and a half from Sydney. 
Former Miss Universe, model and entrepreneur, Jennifer Hawkins is a brand ambassador of Trinity Point, being a local girl from Holmesville near Newcastle. 
Former Australian cricket captain Michael Clarke joins model Jen Hawkins in becoming an ambassador for Johnson Property Group as he announced this week he had bought into the new development Trinity Point.
<img src="/images/2015/11/23/clarke.jpg" alt="" width="567" height="344">
Caption: Johnson Property Group Managing Director, Keith Johnson and former Australian cricket captain Michael Clarke
He bought a three storey, four bedroom terrace off the plan. It cost $1,388,888.
"Trinity Point is going to become an absolute Sydney weekend hotspot – another Palm Beach or daytrip destination but with more of a marina-lifestyle resort focus,” he said.
“We are absolutely delighted to be the first buyers to secure a stunning lakeside home at Trinity Point and are already planning our family holidays and weekend trips away staying in our beautiful three storey terrace house with views out over Lake Macquarie.” 
The launch of land sales at Trinity Point which will take place on November 29 on site.
The first release will comprise a total of 32 land lots, priced from $398,888 ranging in size from 450 square metres to 660 square metres.
To register for interest in land or apartment sales at Trinity Point, register <a href="https://trinitypoint.com.au/" target="_blank">here</a>.
Once completed, Trinity Point will include 189 residential land lots, 250 residential and short stay apartments and a five star, 65 room Pullman resort.
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Johnson Property's Trinity Point gets NSW govt nod to modify Lake Macquarie tourist and residential precinct

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The billionaire property developer Lang Walker is seeking to sell his $2.5 billion Collins Square project in Melbourne, likely to be the largest single property sale in Australia.
But Lang Walker, who sold his empire just ahead of the last peak of the market, says he is not selling at the top again
"I don't think it is at the top," he told the Australian Financial Review.
"Look at the yields and the 10-year bond rates. There is still a big gap and interest rates are going to stay lower for longer and there is a lot of overseas capital looking for projects in the gateway cities." 
He told The Australian he was getting two or three offers every week from potential buyers over the past six months.
Investment bank UBS has the sales mandate for Collins Square, five towers at the western end of Melbourne. 
Two of the five towers are complete and fully tenanted, with two more scheduled to be completed mid-2016 and the fifth in 2017, with more than 250,000 square metres of lettable area.
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Lang Walker seeks Collins Square buyers at $2.5b

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<img src="/images/2015/11/24/Holdencapital_banner.jpg" alt="" width="408" height="86">
SPONSORED POST
Often property developers, particularly inexperienced or would be developers, will purchase a residential or rural property with view to redeveloping it into townhouses or apartment style developments or residential allotments.
With the current high demand for redevelopment sites, often the purchase price is inflated when compared to similar properties in the immediate surrounds which may not possess redevelopment potential. The developer can justify paying a higher price based on the project profit they can forecast to earn.
Despite the property being a residentially zoned, the trap that the inexperienced buyers fall into is in incorrectly believing that they can obtain residential property finance to purchase what is really a development site. 
Which raises the question of what are the requirements when seeking residential finance as opposed to site funding?
Residential property finance (Investment Loan or Home Loan), can be obtained if the site is purchased for a comparable price to neighboring residential properties, or the applicants have owned the property for a long time or the borrower can demonstrate an ability to service the proposed debt. 
The first hurdle our developer applicants face is a requirement to demonstrate their servicing capacity, however many developers do not have consistent cash flows and the rental income is rarely enough resulting in a servicing shortfall. 
The second stumbling black occurs when the property is valued for the lender and the question arises, is it a residential property or a development site for the purposes of the valuation?
The API regulates the valuation industry heavily and Professional Indemnity insurance is expensive. Claims by lenders can have a huge impact on the valuer’s business costs. So, when conducting a valuation on a residential property, the valuer typically searches for comparable sales in the area to support the purchase price. If the valuer cannot find comparable sales evidence they are unlikely to support pioneering values and will typically discount their valuation accordingly.
A development valuation involves the use of a feasibility analysis of the proposed project and considers the project and development viability in greater detail than a residential valuation based on comparable sales.
Do your own research on the market and provide the valuer with supporting sales evidence that you have collected, don’t rely on the valuer to do all the research or have access to the most recent sales.
When should I order a valuation: The best results occur when the valuer is engaged early, the main benefit of early engagement is that the process allows the developer to assess the valuation risk prior to the settlement occurring. If the valuation comes in short the whole project can fall over very quickly if more equity cannot be secured or settlement extensions cannot be granted. Speak to your broker about the most suitable valuer to engage.
 It is important to have all information ready and organized to send to the valuer upon engagement.
Recently a client contracted to purchase a residential property with development potential for $1.5m with a 12 month settlement period to allow the client sufficient time to achieve development approval with a neighboring development site. The client expected to finance 80% of the purchase price and obtain a loan for $1.2m.
A residential valuer was engaged and responded very quickly with a valuation of $1.2m, a $300,000 discount to the purchase price of $1.5m. The valuer correctly reasoned that the purchase price was outside of the normal range for this location. The valuer noted the redevelopment potential but without a detailed feasibility analysis or council development approval they could not accurately gauge the value of this development potential.
With HCAP involvement we managed to obtain loan for 100% of the valuation figure via a structured debt facility that layered the capital stack with 1st and 2nd mortgage funding by highlighting to the lender the redevelopment potential of the property that the valuer was unable to do. The client was able to settle the acquisition and now has time to obtain the relevant approvals before obtaining finance for stage 1 construction with a full development valuation.
If you are buying a development site, best to engage your valuer early and ensure that you speak to an experienced construction finance broker who can assist you to navigate through this process.
 
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arrange construction finance and invest in projects through their equity fund, Queen Street INVEST. To discuss your project finance requirement please call (07) 3171 4200 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au/" target="_blank">here</a>.
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