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 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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jochivers-wq5Bp59R5a

Milking the property development process: Jo Chivers

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GUEST OBSERVER
Slow food, slow dancing and a slow, long-term view are advantageous for property investors and not simply because of capital appreciation. 
As there are significant commercial benefits available for property that is built and held for five – ten years, which add up to a significant saving and retained equity. 
A dollar saved is a dollar earned, but surprisingly, this saving is not common knowledge except for those who have been through enough property cycles to know. 
The ‘Build and Hold’ model – is an approach favoured by investor developers who know the cost of development and where the real savings are to be had. 
There is a new emerging force in the market, a different style of investor developer, who does not flip over projects quickly but is content to wait. This is a model that he says is gaining momentum given the low yield environment. 
There is a term at Goldman Sachs which is long term greedy, these people have investment plans mapped out for the next 10, 20 and 30 years. 
These are astute individuals who can pay more for sites because they take a long-term view with their assets. As they know there are significant savings to be had aside from capital appreciation, which adds up to a significant increase of their asset’s value. The benefits are: 
<ul>
<li>Depreciation benefits 3% (including 2.5% straight line on buildings and 10% straight line on plant and equipment</li>
<li>Sales Commission Costs 5%</li>
<li>Advertising and marketing savings 2% </li>
<li>GST saving if retained for 5 years 9% </li>
</ul>
There is a saving on gross sales value on the margin scheme for GST if the property is held (and not marketed) for an excess of 5 years. Astute investors look at a 10-year cash flow and generally find that mixed used developments offer up the best results.
The Build and Hold model does require the individual to have other cash flow, which normally requires the capacity to hold his or her assets and a significant balance sheet. There is also a formula that needs to be adhered to, to ensure a successful resale if the need arises.
For those considering to build and hold, I would recommend buying within 10 kilometres of the city. Some suggested locations would be Armadale, South Yarra, Windsor, St Kilda, St Kilda East, Malvern, East Melbourne and North Melbourne. The key is any hotspot where the underlying land value will continue to go up over a 10 year horizon given the scarcity of supply in those specific areas. I currently have 8 projects with clients ranging from 2-89 apartments/townhouses that have bought into this strategy and are currently being rolled out. 
 
 Andrew Fawell is director of Beller and can be contacted <a href="https://beller.com.au" target="_blank">here</a>.  
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jchancellor-FAypfDUnLy

Build and hold: Beller's Andrew Fawell

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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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Listed property developer Sunland Group has announced an unsecured note offering raising $40 million, with the right to accept up to $50 million.
Proceeds will be used to fund property development projects, property inventories and working capital of the Group.
Sunland Group managing director, Sahba Abedian, said the note issue will assist in funding the Group’s current pipeline of land, residential housing and multi-storey developments and provide working capital for other opportunities Sunland may pursue in the future.
A summary of the proposed key terms are set out below: 
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Sunland Capital Pty Limited, a wholly owned subsidiary of Sunland Group Limited 
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$40 million with the right to accept oversubscriptions of up to $50 million 
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The offering will only be available to investors who qualify as professional and sophisticated investors as prescribed in and in accordance with Part 6D.2 of the Corporations Act 2001. No prospectus or other disclosure document has been lodged with ASIC or any other regulatory body 
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Fixed Rate Medium Term Notes (“the Notes”) 
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The Notes will be direct, senior unsecured obligations of the Issuer, guaranteed by Sunland Group and certain wholly owned subsidiaries 
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The Notes will be issued with a denomination of $1,000 subject to a minimum initial subscription parcel of $50,000 
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5 years from the date of issue 
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7.55% pa 
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The Issuer will have the option of redeeming the Notes on the date falling 3 years after the date of issue and on the date falling 4 years after the date of issue 
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The Notes will be unlisted securities 
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The Notes will not be rated by any rating agency 
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The terms of the Notes also include a negative pledge, loan to value ratio, interest cover ratio and other financial covenants and undertakings 
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Sunland Group announces $40 million bond issue for private investors

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<img src="/images/2015/12/Holdencapital_banner.jpg" alt="" width="594" height="122">
SPONSORED POST
Perhaps more importantly, the question should be what defines a bankable property developer?
The truth is, there are all types of property developers out there, from the opportunistic once off family affairs to the long-term specialist, the small one-man band operator to the listed behemoths, from the successful partnership to the passive investment fund. But the important thing that defines them all is whether or not they achieve their objectives and how the successful ones go about it? 
Most would respond that having the financial wherewithal and the skills to turn a sound profit represent the benchmarks but they are just a single solution one measure of success. But a big balance sheet is not always available and a lot of factors outside of the control of the developer can influence the ultimate profit, which of itself is not always the key measure of success.
What is critical is an ability to control or positively influence the various processes involved in the process and to cope with unforeseen problems positively in order to reach the desired outcome. As a property developer, your primary role is to “manage risk” and that is the true measure of your ability as a developer and ultimately leads to ‘bankability”.
Hopefully you will get a reward for taking that risk and in most instances that is reflected as profit. You invest $1M to buy a site, borrow another $4M to build some concrete boxes and hopefully you sell them for $7M so that after paying the associated GST and selling fees you realise a profit of $1M.
You have risked $5M and 15 months of your life to make $1M in profit. Sounds simple and sometimes it can be but there are many obstacles that can thwart that outcome. What defines you as both a successful and bankable developer is how prepared and able you are to deal with those potentially unforeseen obstacles.
Many developers serve an apprenticeship working for a major corporate developer, an architectural practice or in real estate, where as a single cog in the big machine they learn one or two key roles, get promoted into another specific area of responsibility and progressively develop many of the skills involved in the total process. After a while they build up enough experience and decide its time to go it alone. But more often than not they have not been exposed to all the processes involved and have relied on others with the requisite skills to deal with the issues in those areas.
So, however it is that you find yourself in the role of developer, the key skill required for success is actually the ability to identify and manage all the risks associated with the process, especially those where you are not the expert. Importantly, the ability to identify where you don’t have the requisite skills and to then secure the right resources required to deal with those issues is what really defines a successful and as a result, bankable developer.
There are many ways to solve the problems such as contracting the right consultants or employing the right people to deal with the process but the skill is actually knowing when you will need help and securing it before it becomes an issue and in the best way to protect your investment in the project. You don’t need to be the expert in every facet of the process, but you do need to be able to identify how, where and when to bring one in to efficiently deal with a problem before it becomes one, not after the fact.
When you are able to demonstrate to a banker that you understand all of the risks involved in the development process, have carefully assessed how they may influence your project outcome and how you can deal with them if they arise, you are well down the road towards getting the kind of funding you want and more importantly, on the terms that you want.
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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What defines a successful property developer? HoldenCAPITAL

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For me and for my team the marketing of new projects is always an exciting time and The Mills Holroyd is one of our current developments that I would like to share.
It’s a good example of what style of apartment project is proving popular in an area set to see almost spectacular growth over the next decade centred on Parramatta.
A few months ago I started to look at projects based around the idea Great Foundations, to examine new projects mainly from the buyer’s viewpoint, concentrating on what creates buyer interest and currently meets their requirements.
Reflecting shifting lifestyle choices buyers today have access to lots of new projects offering many different options. This trend now attracts a much more versatile and varied demographic of buyers which has been our experience with The Mills.
I think it’s a good sign of the maturing of the market when a project attracts a wide cross section of buyers. The Mills has a mix of 1, 2 and 3-bedroom apartments, all with parking and storage and this mix is always popular. The Mills has gained solid support among buyers ranging across younger first time to more established buyers looking for a lifestyle change but wanting to stay close to the area, and close to all of the big-ticket projects that will be focused around Parramatta.
Location Gets a Big Tick
For The Mills, this location is a real bonus as it offers some of the best connections you could want to a big choice of locations mainly via the M4. The Parramatta CBD is about 10 minutes away, Homebush/Olympic Park is 20 minutes, Penrith 30 minutes, or a little further afield the Sydney CBD is also about 30 minutes, or escape to the Blue Mountains with Katoomba just over an hours drive.
Holroyd and anyone who will be living at The Mills also has easy access to the City Rail network with a choice of stations but mainly with the convenience of Merrylands Station. So this is a great location, and the retail facilities are also terrific centred on Merrylands Mall and Westfield Parramatta, Merrylands Mall is within walking distance.
The location would be playing an important part in attracting the type of demographic mix I have detailed and as might have been expected location remains key in its appeal to both owner-occupiers and investors with a 50/50 profile. And the existing infrastructure is also key, as it is across the Sydney region and this always helps to drive the continued demand to well-located in-fill projects.
Attractive Price Options
With the location and the range of apartments as among the key foundations, in any market price is a big factor. In Sydney there’s been a suggestion that prices are possibly running ahead of market expectations. The Mills offers, and I think this is an important distinction, a range of price points with 1-bedrooms starting just below $500,000. The 2-bedroom apartments, which are still the most in demand range from $600,000 and the 3-bedrooms near $700,000, these are competitive prices when combined with the quality of finishes here. The Mills is being sold off-the-plan, which is still a very popular way of entering the market and the building is expected to be complete late in 2017.
With all new projects there will understandably be a focus on the project team, and I think it’s important to highlight the team with the key focus on the developer and the architects.
The Landmark Group who is a wholly Australian-owned property development company whose track record is built on more than a decade of solid experience, is developing The Mills and their key focus remains on projects in Sydney’s most desirable areas.
Marchese Partners is one of Australia’s leading architecture practices specialising in medium and high-density residential projects for over 20 years. Their portfolio includes Top of The Town, Republic, Paramount, 185 Macquarie Street and the Bondi Icebergs and they also work internationally in the United States.
The Mills will deliver to buyers a number of what are now seen as essentials when looking for apartments that are not anchored to a central CBD location. This will always include the convenience of transport and shopping and in some areas access to a range of schools. Location and quality have been the clear drivers of demand here.
The Mills location and diversity of product type has appealed to a range of buyers from young homeowners through to families with children and retirees – generating a genuinely diverse community at the centre of a rapidly growing region of Sydney.
The Big Picture
It’s always a good idea to look at how any project like The Mills sits with the local population and according to the last census in 2011 the population of Holroyd City was 99,163 people and on a growth trend with an increase of 11.5% from the 2006 Census and in the 2016 census that trend will have accelerated. By 2031 it is expected that an additional 30,000 people will have moved to the area. And most will be living in medium and high-density housing.
The latest census also showed that 49.5% of locals were born overseas, interestingly some 27% of this population group arrived in Australia after 2001. The area’s median age is young at 34 years and as might be expected Holroyd is home to many children, with a decreasing senior community.
Of particular interest to local property investors is the fact that Holroyd City is as a major employment hub for Western Sydney, with approximately 31,188 people in jobs in the area. There are according to local council figures an additional 8,000 jobs projected to be created by 2031 and the local economy is estimated at $13.31 billion. The largest business sectors comprise of manufacturing (54.4% of total city output), wholesale trade (11.1%) and transport and storage (7.8%), which looks a positive mix of activity.
 
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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Great foundations at The Mills, Holroyd: Peter Chittenden

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GUEST OBSERVER
The NSW Government has produced a number of plans for development along Parramatta Road over three years yet the community and developers are still uncertain about when statutory plans will be ready. 
Recent media reports that communities are uncertain about potential development seem to blame developers for looking at the sites the government has identified for development. 
Our developer members have followed the governments lead in looking at development on the very sites the government has nominated for urban renewal. 
The latest plan for the New Parramatta Road defines quite specific heights on individual sites (i.e. average 14 storeys – max 25). The Plan includes a Draft Parramatta Road Urban Design Guidelines that ‘provide a consistent urban design framework against which land use and development assessment decisions can be made.’ The guidelines include very specific diagrams of building envelopes with set-backs and heights including the areas of taller buildings above 4 storeys.
Rather than developers being the aggressor in the potential urban renewal of Parramatta Road the problem is that the governments planning strategies are so detailed that they are creating a change in the value of land and understandably owners are looking to capitalise on this.
The development industry is being given very precise indications by government as to which sites across metropolitan Sydney are available for redevelopment but it then seems to take years before final zoning is gazetted.
In the case of Parramatta Road the process has already taken three years and the latest planning document indicates that development applications will be from 2018 onwards. 
See below plan of a potential development site on Parramatta Road indicating the degree of detail the government’s plan includes: 
<a href="/images/2015/11/5/Screen%20Shot%202015-11-05%20at%2011.12.24%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/11/5/Screen%20Shot%202015-11-05%20at%2011.12.24%20AM.png" alt="" width="586" height="403">
 
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
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Parramatta Road plans leaving community, developers in limbo: Urban Taskforce

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A potential development site on the Nepean Highway at Frankston on Melbourne’s south-eastern bayside is going under the hammer on November 11.
It is expected to fetch around $1 million.
The site at 360 and 360A Nepean Highway comprises a 1,114 square metre block of land, zoned Commercial 1. It will be sold as a vacant possession.
The two, semi-detached, single-level buildings on the site have previously been used as medical consulting rooms and car parking.
The site is suitable for a variety of uses subject to council approval. It is within walking distance to the Frankston city centre.
The listing agents are Teska Carson’s Matthew Feld and Michael Taylor.
"Frankston has become one of Melbourne’s premier satellite cities with a mix of industrial, residential and commercial development, including modern lifestyle and entertainment facilities, which has underpinned rising property values and contributed to strong capital growth," said Taylor.
"This site, which also benefits from its proximity to the beach, would suit owner-occupation. However, further development, subject to council approval, to maximise its potential, via the flexible zoning regime, would seem to be its most efficient use."
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Frankston site likely to fetch $1 million at auction

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Melbourne property developer Mohan Du has won the Australian Property Institute’s Young Achiever of the Year award for Victoria.
The founder and managing director of Capital Alliance Investment Group has a seven-year pipeline of projects worth nearly $1.2 billion.
And Mohan is 28 years old. 
Du's notable achievements last year included the near completion of M Docklands – a 19-level mixed-use tower featuring the Docklands’ first five-star hotel.
“Winning this award puts the icing on the cake on what has been a very enjoyable and successful year for Capital Alliance," Du said.
“As a passionate Melburnian, my vision is to turn the world’s most liveable city into an international beacon for beautifully designed, innovative, supremely liveable and workable landmarks."
API Victoria president Aldo Galante said the judges recognised Mohan Du’s considerable drive, vision, work ethic and commendable community mindedness.
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Mohan Du wins Australian Property Institute achiever award

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It's pretty much a given that if you are developing property, then you will encounter problems.
Over time, I've learnt how to deal with these fun little things that crop up. They used to stress me out and ruin my day, I found myself naturally wanting to jump into action to solve the problem as quickly as possible.
But I've learnt over time to sit with it.
Mulling the problem over from different angles allows other options to come up. This process doesn't need too much time, but sometime it needs a different perspective.
One problem-solving technique you should master as a property developer  is changing perspectives to redefine the problem.
Here's an example.
We received our builder's quote on a multi unit development project and it came in a bit higher than we estimated.
Our client had requested some specific detail in the exterior design that had an impact on the cost that posed risk of over capitalising.
Rather than do the obvious which would be to pare back the design and remove the expensive items, I sat with the issue for a day. We were looking at it from two clear perspectives; cost and design. But were there other perspectives to consider? Yes.
Another perspective I looked at was yield or return. Was the design items going to impact on the end use? Who was the end user?
In this case, it was a tenant because our client was building to hold and lease. One of our goals was to optimise the rental return. Would the upgrade bring in more rent? To be honest, no. The upgrade may make the dwelling a little more appealing but the bottom line was it wouldn't increase the yield.
Another important perspective for Property Bloom was to make our client happy. Whilst our job is to ensure the most efficient outcome, we also want our clients to feel they've participated in the process, if that is important to them - it may not be to some clients but it is to others.
 Our solution was to look at other areas of the development that we could save costs on. We were able to simplify the roof design without any considerable difference in appearance and no difference in function. So the cost savings in the roof trusses and materials allowed us to spend on the upgrades our client really wanted.
Our solution to the problem didn't compromise the project but in fact, enhanced it.
A little perspective can go a long way. 
 
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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