One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

Property Industry

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Little Projects has announced that chairman, Paul Little will sell his portion of the property development business to existing directors Leighton Pyke and Paris Lechte (pictured above).
They will take over controlling interest in the company effective 1 January 2019.
The decision comes as Little Projects seeks to implement a site acquisition strategy with a focus on growing a diverse pipeline across medium scale residential, industrial, hotel and student accommodation sectors. 
"It's just that property is very lumpy and it's also very time consuming and it's a good time to transition out of a full development role into an investment role," Little advised.
Pyke and Lechte have both worked alongside Little at executive level and on the board of Little Projects, which has delivered award winning residential and commercial buildings within Australia and New Zealand during the last decade. 
Little will remain an advisor to Little Projects and will continue to invest in new projects that meet the group’s overall objectives.
He will retain ownership of his other businesses including Little Real Estate, aviation and the subdivision that owns broadacre sites at Suffolk Park and Dayton, north-east of Perth. 
"The market in WA has been through a more difficult phase but it appears to be straightening out now," he said. "It would probably be a mistake to look at selling out of the estates we currently have."
The restructure in the business will not affect the ownership and delivery of the current project pipeline in any way, Pyke said.
"The strong synergistical fit of Little Projects and Little Real Estate will continue to deliver a seamless solution for our customers," he said.
Little confirmed that the Little Group Offices would still be keen to invest in the property development sector via Little Projects where strategic benchmarks were met.
Little also confirmed that other activities within the expanding Little Group would be unaffected this announcement.
Little, who turned 71 this week, said the sale of the business to development director Mr Pyke and construction director Mr Lechte would allow him to stop playing a full-time development role and focus on investing in his current projects and some new ones. 
"There's no scaling down at all," Little told Nine's The Australian Financial Review.
Financial documents filed with regulator ASIC show net profit after tax for the company in which Mr Little is the sole shareholder more than halved to $10.3 million in the year to June from $24.8 million a year earlier. 
Sales revenue jumped to $60 million from $12.7 million as site acquisitions also jumped to $52 million from $10 million.
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j.ballantyne1990-6AQqhLzZaK

Paul Little to sell out of Little Projects to existing directors

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GUEST OBSERVATION 
For 50 years, the Australian property industry has led the world. Australia was the first to create listed property trusts and has proudly blazed the trail for building sustainability. Our industry is world’s best practice. 
Our future—a future of technology-enabled solutions for big problems in the property industry—is less certain. From Singapore to Shenzhen, Dubai to Silicon Valley, proptech is transforming the property industry. 
In Australia, a dangerous air of complacency among our industry's key players threatens to hold us back, despite noticeable 'talk' in recent times. Without that talk converting to bold action, we'll lose our crown as other markets invest in the future. If we do not lead on proptech then we will no longer lead in property. It’s as simple as that. 
Industry challenges
Traditional property businesses, such as construction, development, asset ownership and agency, have been tremendously successful over many decades. However, proptech is new and at least somewhat unknown to the incumbent players. As industry value has started to shift away from a traditional ownership and service layer toward a technology-enabled service layer, it is uncertain how the incumbents intend to retain value.
For example, WeWork provide 'office space as a service' without owning any assets. They’re eight years old and are raising capital right now at a $35 billion valuation. That makes them more valuable than Airbnb or SpaceX. 
The second factor is aversion to risk. Success in real estate is a direct function of risk mitigation. From a feasibility report prior to green-lighting a development through to due diligence when purchasing an asset, every element of risk is considered methodically. A proptech knowledge and capability gap, combined with an inherent aversion to risk, inhibits necessary action. Today, the greatest risk of all is to do nothing. 
Add to that the ultra competitive nature of the property industry. A lack of collaboration among key players holds these organisations back as it restrains new solutions. This ‘anti-collaboration instinct’ within the industry must change, for the benefit of all.
The time for action is now
Great challenges walk hand-in-hand with great opportunities.BlueChilli is Australia's largest tech accelerator, the linchpin between corporates keen to innovate, investors hungry for deal flow and tech startups with bold solutions to big problems. A proptech-themed, corporate-backed accelerator bringing together these three sectors to tackle big juicy problems with breakthrough solutions has a tremendous opportunity to make a difference in this space.
And we’re certainly seeing the industry awaken to the need for and power of collaboration to serve proptech. In conversation with corporates from across the industry, we note there’s a growing hunger to walk the innovation talk as the threats and opportunities of proptech become clearer. 
At a recent proptech lunch we brought together senior executives from real estate heavyweights such as CBRE and Stockland with some of Australia’s most promising proptech startups and other corporates with an interest in proptech including ANZ, which has identified housing affordability as a key strategic pillar. Together, we shared problems, assessed trends and started a dialogue for what action might involve.There are already green shoots of that action among corporates.
The investment piece
In the context of Google’s 70-20-10 innovation model, the business case for proptech is apparent. The model sees 70% of innovation investment devoted to the organisation's core business, such as optimising traditional real estate assets or services for customers; 20% to adjacent areas, for example an online telehealth service for tenants in aged care facilities and; 10% towards R&amp;D for transformation in markets that don’t yet exist, like a technology solution that automates real estate valuations making existing valuation services redundant. 
HBR research has found that companies who follow this 70-20-10 innovation investment model are out performing their peers with P/E premium of 10% - 20%. The same research found that the return ratio is roughly the inverse of the innovation allocation. Adjacent and transformational areas of innovation accounting for roughly 20% and 70% of returns respectively, with 10% coming from innovation in the core.  
The speed of change, and the fact that transformative innovation is by its nature often beyond the capabilities and risk appetite of large organisations, makes this the sweet spot for collaboration with agile, risk-inclined startups that bridge a corporate’s tech knowledge gap.
Neighbourlytics, for example, is a hyperlocal social analytics dashboard that gives real-time data on a neighbourhood. It was born from a realisation that Census data collection once every four years is too infrequent and too shallow a dataset. In addition to businesses in the property industry – for example developers – government agencies and facilities managers find Neighbourlytics data useful for meeting current community needs.
Proptech is the next frontier and the Australian ecosystem is as well placed as any in the world to lead the way.
As an investor in and accelerator of tech startups, we have trained our attention on proptech. We see deep entrepreneurial talent, hunger for corporate innovation and rapidly increasing investment activity. All the ingredients are there, but the question remains: will the Australian property industry step up?
Chris Ball is Head of Partnerships at <a href="https://www.bluechilli.com/" target="_blank">BlueChilli</a>, a company that invests in startups and entrepreneurs. 
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Is the Australian real estate industry leading the world or falling behind?

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The property industry is buzzing, with subscribers to the Avdiev Property Remuneration Report 2018 suggesting business conditions are better than ever in 2018.
97% of subscribers to the Avdiev Report are doing well or very well, none are doing badly, according to Avdiev.
Rita Avdiev, managing director of the Avdiev Group, says the speed of property activity is ramping up.
“From a slow start in January, companies expect to be flat out till Christmas and beyond”.
Property salary rises are up again, well above the general workforce 1.8% (ABS) and CPI 1.9 percent increases.
The juniors are doing best in the pay stakes, especially in development, design and building.
The report found that shortages of competent staff with desirable skills and attitudes are keenly felt by employers. 
The young are outpacing their seniors in the race for remuneration rises.
“The young are the future of the industry” says Avdiev. 
”Recognized and rewarded at last, they are pushing the boundaries, bypassing old hierarchies and may bring some much needed change into attitudes and working relationships of the 21st Century.”
The RBA no longer frets about the property bubble. Its new focus is on Australia's fast growing economy, expecting the flow on effect of rising company profits to lift pay levels in the general workforce this year. 
The report found that the commercial sector is set to provide the most work, with competition forcing retail assets into redevelopment.
A solid two year pipeline of work is predicted, most from the commercial sector with foreign fund inflow, asset growth and capital raisings the source. 
The Avdiev Property Industry Remuneration Report © is published annually in March.
It is the product of a formal Australia wide survey of property, investment, construction employers and built environment related consulting companies. It gives vital information on current remuneration ...
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jrobinson-rf4aSBido9

Speed of property activity ramping up as the young take charge: Avdiev

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MMJ Real Estate has announced the further growth of its national commercial network with McGees Sydney office merging with MMJ Sydney’s business.
MMJ currently comprises six offices in Sydney, Melbourne, Brisbane, Perth, Canberra and Wollongong.
MMJ Real Estate chief executive, Chris Johnson announced the merger.
Ian Dimond, who has managed McGees in Sydney for over 20 years, will join MMJ Sydney’s current directors Cameron Algie and Chris Johnson, in driving the continued development of MMJ throughout New South Wales.
The McGees' clients include many Australian and international corporations, as well as government bodies, private investors and the legal fraternity. 
Other senior operatives who will join MMJ Sydney as part of the merger include Tony St Leon and Callum Macgregor.
The MMJ network also residential offices located in Wollongong, Illawarra North, Illawarra South and Dapto.
Picture above L-R: Cameron Algie, Chris Johnson, Ian Dimond.
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MMJ Real Estate merges with Sydney office with McGees Sydney

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The real estate industry is set to shed up to 25 percent of its workforce, according to the REIA, as the property market rebalances after five years of strong conditions especially in Melbourne and Sydney. 
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Real Estate Institute of Australia president Malcolm Gunning said the shedding of jobs was inevitable.
“What we see is a lot of opportunists come into the market when it’s a bull market, and yes we will see jobs shed because we will see less turnover of property,” Mr Gunning told The Australian.
“This is really a market for experienced real estate agents and I would expect about 20-25 per cent of our residential agents will leave.”
Mr Gunning predicted that low-cost operators would be among the first to go as the “momentum swung back to full service agencies”.
“Low-cost operators really can’t afford to put a lot of resources behind them, and people will quickly get sick of paying a fee up front and getting no results,” he said criticising the low-cost operator as one "who lists and waits for the inquiries.”
Mr Gunning said this week’s earnings downgrade by the McGrath agency could be seen as a “reference point” to the shift in the property cycle when the agency issued a downgrade based partly on the market slowdown.
“John (McGrath) floated at the pinnacle of all the hype surrounding the property market; he picked the sweet spot very well,” Mr Gunning said.
“That will always be a reference point as to what was the high water mark for that period.”
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Standby for 25 percent estate agent job departures expected by REIA

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SPONSORED POST
At realcommercial.com.au, we want to celebrate our industry's success and achievements, and that means your success and achievements.
That’s why we’re excited that REA Group AREAs are back in 2017 – bigger and better than ever before.
The AREAs are a unique awards program that honour the most innovative, community-minded and highest-achieving individuals and businesses across the property and media industries. Awards include Innovation, Community, Service and Marketing Excellence categories and encompass the entire property industry (residential, commercial, project developers) as well as those working in media.
This year a brand new award has been introduced – the Gold AREA – Agency of the Year. The Agency of the Year award will recognise agencies who work hard to set themselves apart from competitors and excel in all three award categories. 
Have you submitted your AREAs entry for 2017? We're looking forward to celebrating your success and achievements – but you need to get your submissions in by 30 June 2017.
If you need some inspiration to help with your submission, you can view the <a href="https://theareas.com.au/winners-tab/winners" target="_blank">2016 AREA winners here</a> including:
<ul>
<li>Burgess Rawson: Brand Campaign of the Year – Commercial</li>
<li>
CBRE Melbourne: Campaign of the Year Award – Commercial 
</li>
</ul>
For more information about the 2017 AREAs and how to enter, <a href="https://theareas.com.au/categories-criteria/the-award-categories" target="_blank">click here</a>.
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Are you our Agency of the Year? REA Group AREAs submissions close 30 June 2017 

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The Real Estate Institute of Victoria’s conference later this month in Melbourne will celebrate its 80th year. 
The Ignite Conference on 24-25 July at Crown Conference Centre will see real estate experts share their insights on sales and leasing.
Attendees will see some of the state's best auctioneers as they compete for the title of 2016 REIV Senior Auctioneer of the Year.
The winner will be announced at the 80th anniversary gala dinner on the first night of the conference.
Among the eight keynote speakers at the conference are Paul Zahra (ex-CEO David Jones), Mark McCrindle (demographer and trends expert), media specialists Todd Sampson and Jane Caro. 
Details of the event can be viewed on the REIV website - www.reiv.com.au/ignite2016.
 
 
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REIV 80th year celebration to feature industry experts

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Paul Craig has taken over as chief executive officer of Savills Australia and New Zealand following the appointment announced in November 2015.
He was previously Savills managing director in Western Australia and head of Cross Border Investments.
Savills Chief Executive Officer Asia Pacific, Robert McKellar, said clients and staff have welcomed the promotion of Mr Craig as the obvious successor to lead Savills Australia &amp; New Zealand. 
“Paul has an outstanding track record in capital transactions and cross border deals, bringing a global perspective to the role, and a determination to further grow our footprint in both Australia and New Zealand over the next five to 10 years,” he said.
“The foundations we have built up over the past decade are strong and we acknowledge the great work undertaken during that time by the outgoing chief executive, Paul McLean. The time is right for us to move to the next stage under Paul Craig’s leadership.”
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Paul Craig commences as CEO at Savills Australia & New Zealand

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The Property Industry Foundation (PIF) is set to raise some $600,000 this month from two of its core fundraising events which will be channelled into programs for at risk and homeless youth, including the Foundation’s own PIF House initiative.
The Middle Harbour Yacht Club recently hosted the Yachting Regatta in Sydney on 11 March, 2016.  
This week, the Foundation will hold its Sailing Challenge at the Royal Brighton Yacht Club with around 40 yachts expected to participate. The Property Industry Foundation (PIF)’s annual Charity Sailing Challenge will be held on Friday 18 March to raise funds to support homeless and at risk young people in Victoria.
Sponsored by Brookfield, the Charity Sailing Challenge was held at the Royal Brighton Yacht Club with a Jamaican themed after-party featuring live entertainment.
Special guest skippers on the day will include America’s Cup Skipper John Bertrand AM and fellow Sailor and Rio Olympics Gold Medal hopeful, Lisa Darmanin.
Around 40 registrations have been received with high-profile participants including APN Group, Brookfield, Brookfield Multiplex, Cedar Wood Properties, Charter Hall, Colliers International, Dennis Family Corp, EY, Frasers Property Australia, Hacer Group, Hayball, Investa, ISPT, Knight Frank, Macquarie Capital, Mirvac, Napier &amp; Blakeley, Probuild Quintessential Equity, Urbis and Vicinity Centres.
“It provides the industry with the opportunity to engage, network and have some fun whilst making a significant impact into the lives of at risk youth,” said Daryl Browning, chairman of PIF Victoria.
Funds raised will be channelled into programs for homeless and disadvantaged youth, including PIF’s own PIF House initiative.
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Sailing towards a brighter future

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GUEST OBSERVER
Recent announcements by both major parties suggest the long-held bipartisan consensus over negative gearing is finally breaking.
While we can expect anguished cries from the property industry, the two proposals for reform point to just how deeply flawed negative gearing is, and why neither change goes far enough.
The proposals point to two deep contradictions at the heart of negative gearing: it is designed to deal with housing affordability (that is, demand for housing is higher than supply) by increasing demand; and it is a policy to encourage savings, that simultaneously encourages debt, and rewards those who already save far more than those who find it difficult to save.
First, though, it’s useful to clarify what negative gearing is. It’s a tax rule that allows investors (not only property investors, but mainly property investors) who run their investment at a loss to claim that loss against their other income.
Why would a rental property run at a loss? Usually because the investor borrows most of the purchase price, and interest repayments on the loan (mortgage) are higher than the income (rent).
In most other countries this would mean the investor did not have to pay tax on the rent they received. But it would not allow them to reduce the tax they pay on their other (usually wage and salary) income. Australia is an exception.
So negative gearing encourages people to invest in property, and it particularly encourages them to invest by borrowing most of the price of the house. It might already be obvious why this is a very odd kind of housing and investment policy, seemingly designed to encourage people to over-extend and expose themselves to big risks if property prices were to fall.
<h2>A false fix for affordability</h2>
However, the property industry has long argued that negative gearing helps housing affordability, particularly for renters, by expanding the supply of rental housing. Yet, as opposition treasury spokesman Chris Bowen has recently argued, 93% of negatively geared properties were existing stock – the new owners simply bought them off someone else.
Labor’s policy is to restrict negative gearing to new properties. And given the current policy setting, that is likely to have a positive impact.
But think for a moment about the logic of “increasing supply”. Negative gearing is not a subsidy for builders, it’s a subsidy for buyers. That’s right. The problem is one of too many buyers willing to pay high prices, and negative gearing is designed to create more buyers willing to pay more.
Of course, Labor’s policy will restrict the increased demand to new housing stock. But it highlights a deeper problem in the housing market.
Private developers increase supply only if it is profitable, which is usually when prices are rising. If supply were increased without increasing demand (for example, by direct government investment) that would likely contain rising prices. Doing so through the market, however, simply recreates the existing problem.
<h2>And what about rental prices?</h2>
Critics would argue I am focusing only on housing prices, not rents. Negative gearing is designed to lower rents by allowing investors to rent at a loss. The problem here is that renting at a loss is still a loss unless something else is going on. That something else is capital gains.
Negative gearing only makes sense as an investment strategy because investors make their real money by buying low and selling high. So it works only if house prices are increasing. To the extent it contains rents it only does so “relatively”: rents rise less rapidly than house prices, but both go up because of the scale of new demand.
In some market segments (especially the bottom end) new supply can make things worse. Indeed, “new supply” often increases rents because it demolishes older, cheaper housing to make newer, fancier and more expensive housing. On this score, the best part of Labor’s announcement is the reduction in the tax concession for capital gains. 
Negative gearing’s other claimed benefit is that it encourages people to save. In practice, this “saving” is coupled with large new debts.
This is a serious economic problem because it means tens of thousands of Australian households have been encouraged to take on debt that they might not be able to sustain if house prices fall. And that means governments are forced to keep house prices high to avoid serious economic consequences – as the Rudd government did by increasing first home buyer grants during the GFC.
Second, negative gearing is a tax deduction. That means the higher your marginal tax rate, the more you get. Someone on $200,000 will receive about half their loss back. Someone on $30,000 will only get about a fifth.
So the rewards for saving are much greater for high-income earners (who already save a lot) than for low-income earners (who struggle to save).
This helps explain how two apparently contradictory claims are both true. Most negatively geared investors are mums and dads; nurses and police officers. Yet most of the gains from negative gearing go to the very top of the income distribution.
This is because most of the gains go to a small subset of investors with lots of properties and on very high incomes. The “mums and dads” get a relative pittance.
<h2>Much more needs to be done</h2>
The government seems to know it can raise significant revenue and target only a small group of investors. It can leave the mums and dads alone and still correct most of the inequality and expense by putting a cap on how much any one investor can claim. How far it actually goes remains to be seen.
So both proposals do good things. But once you understand the problems they are meant to resolve, you realise it is almost impossible to make negative gearing “good policy”.
Neither plan “fixes” the problem. They are mitigation at best.
Maybe we can see them both as first steps. After all, with so many investors so heavily indebted, any policy that pulled the rug out all at once has serious economic risks.
We can only hope these policies are the first instalment. Governments serious about housing affordability will also need to invest directly in new supply by funding social and affordable housing. 
Ben Spies-Butcher is lecturer in economy and society, Department of Sociology, Macquarie University and author for The Conversation.
He can be contacted <a href="https://theconversation.com/profiles/ben-spies-butcher-145" target="_blank">here</a>.
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