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

Purplebricks

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There are now just 182 listings remaining on the Purplebricks website.
It's less than a quarter of what remained in July when they still held <a href="/news/purplebricks-australian-property-listings-shrink-to-just-800-homes-for-sale">800 listings</a>. 
Since then a number of properties have been presumably sold or vendors have ditched the UK-based disruptor for local estate agents.
<img src="https://www.urban.com.au/images/2019/9/13/Tallai%20PurpleBricks.JPG" alt="">
The <a href="https://www.purplebricks.com.au/search/property-for-sale#?q&amp;location=&amp;page=1&amp;searchType=ForSale&amp;sortBy=2" target="_blank">remaining 182 offerings</a> range from around $2.4 at 19 Alawara Drive, Tallai (pictured above), a seven bedroom, seven bathroom house set on 0.82 hectares to $150,000 for 140 Gilmore Ave, Medina.
The 522 square metre Medina, West Australia holding has been for sale since December 2018 with the asking price reduced from $170,000 in August 2019.
According to their website, around 73 agents are still on deck, down from 85 in July.
In early May, Purplebricks Australia announced its intention to exit the Australian market.
Despite the newly-installed CEO Neil Tavender and Kenny Bruce having overhauled the pricing model, so that half the fee was paid upfront and half on completion of the sale, Purplebricks decided to abandon the Australian market.
The pressure on the Australian business was most clearly exposed when it reported an $18 million interim loss for the six months to October last year.
Vic Darvey, the Purplebricks Group CEO said in May that after much consideration it had "made the difficult decision to close the Australian business."
"We’ve been operating here for two and half years and, unfortunately, we have been unable to make the progress in the Australian market that we’ve wanted, despite the tireless efforts of our employees," he concluded.
The Australian branch announced that they would take no further listings in Australia, but intended to finalise all existing agreements.
They announced their decision just a week after UBS said the company was<a href="/news/purplebricks-not-likely-to-make-profit-in-australia-until-2022-ubs"> not likely to make money in Australia</a> until 2022.
In the month prior to the shutdown it was forecast that Purplebricks would potentially have to close its Australian operations <a href="/news/purplebricks-australian-agency-may-need-to-be-abandoned-to-save-uk-mothership">to save the UK mothership</a>.
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j.ballantyne1990-6AQqhLzZaK

Purplebricks Australia down to just 182 property listings

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Losses at online estate agent Purplebricks have almost doubled with the UK based firm confirming plans to exit the US market after its previously announced exit from Australia.
It revealed in total, its operating losses in the key US and Australian markets were £52.9 million (A$93m).
"We have taken the difficult decisions to exit our businesses in both Australia and the US as it is very important that we now focus our resources on the UK and Canada, where we have a strong established presence and where there are significant opportunities to grow market share and deliver profitable growth for shareholders," Purplebricks boss Vic Darvey said.
"Both exits will be conducted in an orderly manner with the expectation they will be completed by the end of 2019."
It made a FY19 operating loss of £18.8 million (A$34m) in Australia.
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Purplebricks shareholders were updated today on the cost of its venture into Australia that facing "increasingly difficult market conditions as the year progressed, we changed the management team and business model."
"The board concluded that the prospective returns from Australia were no longer sufficient to justify continued investment and took the decision to exit the market in May 2019."
It has <a href="/news/purplebricks-australian-property-listings-shrink-to-just-800-homes-for-sale">fewer than 800 listings remaining in Australia</a>, down on the 4500 instructions received in FY2018.
A focused, results-orientated team are on the ground implementing its exit strategy, which is based around an orderly process where we stand by our key obligations and help customers successfully sell their properties.
With the decision to close its Australian business, it expects total losses and closure costs of between £6 million to £8 million in FY 2020.
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</div>
</div>
The company noted during the two and a half years that Purplebricks operated in Australia, "market conditions became increasingly challenging."
"Despite changes to the business model and the continued hard work and dedication of the team there, we failed to gain the scale needed to succeed.
"Given the market outlook, and size of the ultimate opportunity, the board took the decision in May 2019 to run down and close the business, which will be completed by 31 December 2019.
"A reduced team is in place to ensure a professional wind down of the business and to ensure we continue to deliver great outcomes for our remaining customers.
"Having launched in the US in September 2017, we expanded rapidly into a total of seven states within a year.
"Each state required a significant investment in marketing to underpin the brand.
"Having not seen the revenue growth we had expected, in early May 2019 we put the US business under strategic review, to examine the feasibility of delivering growth in a more effective and cost-efficient manner.
"Having reviewed a number of alternative business models, the outcome of the strategic review was that while there remains a significant opportunity to disrupt the US market, it would take substantially more management time and resources than the Company is able to commit at this time.
"Therefore, a decision was taken to withdraw from the US and either sell or close the business."
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Investment in building its brand in the US and establishing the Australian business led to a group operating loss of £52.3 million (FY 2018 loss: £27.8 million).
The business is supported by a robust balance sheet with a strong cash position, it advised.
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Its mission was to be "THE WORLD'S MOST INNOVATIVE, CARING AND MODERN REAL ESTATE AGENCY THAT HAS OUR PEOPLE AND OUR CUSTOMERS AT THE VERY HEART OF EVERYTHING WE DO. TOGETHER WE WILL NEVER STOP LEARNING, CHANGING AND WINNING."
It hopes to get to 10 percent of market share in the UK and 12 percent in Canada.
The Australian and US startups had been "incredibly distracting," Darvey told a results presentation.
"I don't think we will ever move to no-sale, no-fee. The upfront fee brings to us a motivated seller," he said, while acknowledging the agency would continue to evolve its pricing model.
 
The presentation noted UK commission rates were coming down, although this was only in certain pockets, and no figure was offered.
Rentals provide just 10 percent of the business.
Founded in 2012 by Michael Bruce and Kenny Bruce, it débuted on London's Alternative Investment Market (AIM) in December 2015.
In August 2016 <a href="/expert-insights/investing/purplebricks-arrives-in-sydney">it launched in Australia</a> and in September 2017 Purplebricks was launched in the US. 
In 2018, the company purchased DuProprio, a Canadian real estate company that offered commission-free real estate services.<a href="https://en.wikipedia.org/wiki/Purplebricks#cite_note-11"> </a>
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jchancellor-FAypfDUnLy

UK disruptor Purplebricks to also exit the US after Australian low commission venture failure

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There are just 800 listings remaining on the Purplebricks website.
It was at around 1000 a fortnight ago, as vendors depart the UK-based disruptor for local estate agents.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/7/29/narre%20warren%20east.jpg" alt="">
The <a href="https://www.purplebricks.com.au/search/property-for-sale#?q&amp;location=&amp;page=1&amp;searchType=ForSale&amp;sortBy=2" target="_blank">remaining 800 offerings</a> range from around $2.9 million to $3.2 million at 30 Boundary Road, Narre Warren East (pictured above), a four bedroom, three bathroom house set on 6.47 hectares to $30,000 for Lot 30 Melvin Terrace, Pinery.
The 1012 square metre Pinery holding has been unsuccessfully offered to market multiple times over the past six years, with the asking price reaching $133,270 from 2014 - 2016.
According to their website, around 85 agents are still on deck.
In early May, Purplebricks Australia announced its intention to exit the Australian market.
Despite the newly-installed CEO Neil Tavender and Kenny Bruce having overhauled the pricing model, so that half the fee was paid upfront and half on completion of the sale, Purplebricks have been forced to abandon the Australian market.
The pressure on the Australian business was most clearly exposed when it reported an $18 million interim loss for the six months to October last year.
Vic Darvey, the Purplebricks Group CEO said in May that after much consideration it had "made the difficult decision to close the Australian business".
"We’ve been operating here for two and half years and, unfortunately, we have been unable to make the progress in the Australian market that we’ve wanted, despite the tireless efforts of our employees."
The Australian branch announced that they would take no further listings in Australia, but intended to finalise all existing agreements.
They announced their decision just a week after UBS said the company was<a href="/news/purplebricks-not-likely-to-make-profit-in-australia-until-2022-ubs"> not likely to make money in Australia</a> until 2022.
In the month prior to the shutdown it was forecast that Purplebricks would potentially have to close its Australian operations <a href="/news/purplebricks-australian-agency-may-need-to-be-abandoned-to-save-uk-mothership">to save the UK mothership</a>.
Michael Bruce, the group's founder and chief executive officer stepped down immediately following the announcement with Vic Darvey, previously Purplebricks’ Chief Operating Officer, being appointed to the role of Chief Executive Officer and to the Board of Purplebricks.
While Purplebricks has sold more than 5000 homes since launching in Australia in September 2016, the company was spending about 84c in advertising to generate a dollar of revenue.
The Australian Financial Review has regularly revealed an exodus of estate agents along with allegations of a "toxic culture" within the company.
Over the weekend the London press reported Purplebricks is due to post losses of £51 million.
The Sunday Telegraph advised that the loss, for the 12 months to the end of April, will be unveiled when Purplebricks reports its results on Wednesday.
The ‘underlying pre-tax’ loss compares with £26m for the year before.
According to the Telegraph, the near-double loss comes after a “failed assault” on the Australian market and troubles in its American business, which has been under review.
However, says the newspaper, the company is “theoretically profitable” in the UK.
The founders, brothers Michael and Kenny Bruce, have both left the business.
Michael Bruce, who was also global chief executive, has been replaced by Vic Darvey, formerly managing director of Money supermarket.
The Bruces have sold their shares in Purplebricks to German publishing giant Axel Springer, now Purplebricks’ largest investor with a 27% holding.
Purplebricks shares closed on Friday at 99p, below the £1 launch price back in 2015.
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Purplebricks Australian property listings shrink to just 800 homes for sale 

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EXPERT OBSERVER
Purplebricks’ inability to succeed in the market was not driven by a lack of interest, or fixed fee not being feasible, but instead by their complacency in bringing a foreign model to Australia and assuming it would work without any adaption.
We are confident that Australians want to sell their properties for a fairer price and we have developed a proposition that supports this. In a world where vendors pay less, agents make more and the business is sustainable, everyone wins.
There is a huge appetite for fixed fee and Purplebricks themselves proved it with over 7,000 listings and 5,500 sales in under three years. This is no small feat. In entering Australia however, Purplebricks naively brought in the same model that had proven successful in the UK. It is critical to have a market appropriate version of fixed fee for it to be a success.
In the UK, for example, people are happy to do their own open homes, which is a small, simple thing, but it impacts the process. Here they weren’t transparent about open homes being an extra fee.
Under their scheme, vendors were also liable to pay the full fee regardless of whether the property sold or not. This left no incentive for the business or the agents to actually sell properties. This may work in a booming market, but not in a declining one.
In October last year Purplebricks turned their fee structure around, modelling it on our business, <a href="https://upside.com.au/" target="_blank">Upside Realty</a>, which is purpose built for the Australian market. The fee structure is paid on successfully achieving a sale, as opposed to their all upfront, regardless of success starting point. We see this as just one of the errors that Purplebricks made in expanding to Australia.
In order to grow, Purplebricks attempted to buy the market through huge TV and media spends of over $20m a year which obviously creates a very large hurdle for profitability.
Purplebricks also quoted ‘increasingly challenging’ marketing conditions as a reason for their lack of success, we would debate that the market is an inhibitor for the growth of such a business. Whilst the market conditions have created a lower volume of sales post royal commission with finance tightening, we feel it is ideal for change and disruption but as a company you need to be very tight on execution and be efficient.
Upside is growing quickly with over 650 listings in Sydney and Melbourne and expansions into ACT and Brisbane this month. This is achieved through strong execution, hiring the right agents and living up to our promises. Sustainable growth is key to Upside’s long-term success, we will not compromise on service quality to accelerate expansion. Upside is using technology to bring the price down without impacting service levels, in fact our back-office technology means our agents have more time to focus on each customer and their property. Like Purplebricks, Upside Realty has no commission structure, we offer a fixed fee of $7,500 for private treaty sales and $8,500 for auction.
Adam Rigby is CEO and founder of <a href="https://upside.com.au/" target="_blank">Upside Realty</a> he is also a seasoned entrepreneur and executive with some 25 years founding successful businesses in the digital sector.
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Despite Purplebricks pullout Australians still hungry for fixed-fee agencies: Adam Rigby

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University of Sydney Business School associate professor Jamie Alcock said it was unfortunate Purplebricks had folded in Australia.
“I don’t think it was bound to fail, it was a market ripe for disruption,” Mr Alcock told Domain.
 “The [real estate agent] commissions in Australia are very high by international standards.
“There is a lot of money to be made. 
"It’s not a hugely complex task to sell residential property; a lot of it could theoretically be disrupted through some technological revolution or a new business model.
“When you see large fees and there are no huge technical skills or qualifications required, it’s disruptable.”
The DIY selling platform, forsalebyowner.com.au has offered to hire all 105 Purplebricks agents and migrate their 1400 listings to its online platform for free, after the British-based firm announced its intention to exit Australia this week.
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Australian real estate maket ripe for disruption: Sydney University professor

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GUEST OBSERVATION
The real estate agents of the land will be toasting the departure of upstart disruptor Purplebricks who are packing up and going home to Britain. Crisis over. No more nasty TV commercials playing to a nations’ already healthy distrust of traditional agents.
But it’s not that simple. Real estate agents still rank 27 out of 30 professions in terms of respect and reputation – below politicians and just above car sellers.
Purplebricks lost because they were even worse. They correctly targeted the problem – agents who will do anything to get you to sell your house so they can clip the ticket with fat commissions. A system which inherently mis-aligns incentives between provider and customer. Have you noticed now is always a “great time to sell” regardless of whether the market is going up, down or sideways? Yes, because it’s always a great time for an agent to trouser a healthy commission. Hence why the profession is held in such low esteem by its customers.
Purplebricks was a “disruptor” to use the favourite word from my second home, Silicon Valley. And they correctly belled the cat on the problem with the status quo. But their problem is they replaced it with something worse. You paid them whether or not they successfully sold your house. Now a problem that plagues the industry at the best of times – agents “buying your business” by giving you an inflated idea of what your house will sell for – had no constraints to hold it back. At least a traditional agent has to do what the industry euphemistically calls “vendor management” – talking you back down to the price it will actually sell at or they won’t get paid on commission. Purplebricks didn’t even need to do that – if your property didn’t sell at the (inflated) price they told you it would, they were paid anyway. All care but no responsibility. Indeed, a total lack of responsibility.
Too little too late they changed and near doubled their fee to include a second half that only got paid if you sold. And then they too got in the business of “vendor management” – indeed they had competitions internally to see who could talk their clients down by the largest discount to the original asking price. It wasn’t a good look when that became public!
So, I expect we’ll see a series of triumphant “I told you so” pieces in the real estate industry press celebrating the departure of the young bull and triumph of the old ones.
My counsel, having seen this movie in countless other industries over the last 30 years? Don’t celebrate too hard folks, the voting public still has a huge problem with the real estate industry – its incentives and its ethics. Winter is still coming. Just not quite yet. Not that the current market slowdown hasn’t been hard enough for a commission driven industry.
Amazon was not the first online retailer. Google was not the first search engine. Tesla was not the first electric car. Change will come, but not, as always, without some false starts. No less an authority than MacQuarie Bank – who banks more than half the industry - have told them so at a major conference late last year. Data and digital disruption will come, margins will compress, customers will demand transparency. It’s only a question of when and how those realities come to pass.
And if it’s true in real estate sales, all the more so in the poor cousin of the industry – rental property management. The quiet achiever of the real estate industry has been treated as a cash cow by the sales agents who own the agencies for decades now. It’s the only thing that is keeping many agencies alive in the current downswing.
But the incentives here are also misaligned. If the agent tells an owner they will get an (inflated) rental price for their property in order to secure the business, who pays for the error? The owner – with an empty unlet property until they are also “managed” back to a realistic price. If the agent doesn’t stay on top of their brief and collect the rent from a recalcitrant tenant, who hurts from the error? Not the agent again – the owner.
The message from Purplebricks is clear – the status quo is not OK – the customers are not happy – and just because one “disruptor” with an even more mis-aligned business model than the old guard failed, do not assume winter isn’t coming. It will. The good agents know this and are working on how they can build a sustainable model that is aligned with the interests of their clients. Those who don’t adapt will die. I just can’t tell you when yet.
That’s why some more innovative new participants in the industry are starting to do things differently by genuinely putting owners first, offering guarantees that if agents don’t quickly find a new tenant or collect the rent on time, then the agent, not the owner bears the cost.
Evan Thornley is the co-founder, investor and executive chair of new style agency LongView. 
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Winter still coming for real estate agents despite Purplebricks departure

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"Really they were a dressed up private seller platform that was purported to be something else."
That's the view of REIA deputy president Hayden Groves, who told Ross Greenwood's 2GB last night that the exit from the Australian market confirmed yesterday, was good news.
"It hasn't worked here," Groves said.
Its Australian website had about 1400 property listings.
It had 3,600 verified five star reviews.
"They were really trying to take the real estate agents out of the process of real estate professional transactions, purporting the fact they were real estate agents which was curious.
Groves said in actual fact they were a dressed up private seller platform, pretending to be something else.
"It's great news for consumers of professional real estate services in the country because they were duped by false and misleading advertising by Purple Bricks purporting to be something they're not.
"They were saying that real estate practitioners in the traditional sense were nothing more than commission collectors and not undertaking their role correctly.
"They were saying they were real people and real real estate agents that they were going to be holding the hand of the consumer, seller, client in the selling process the process
"But of course their model, their agents weren't incentivised to get an outcome.
"Effectively these poor consumers, who were expecting something else, were left without any of the proper services and support services they needed to get the job done.
Purplebricks dubbed themselves a low commission agency, having had previous success in the UK property market, they entered Australia just two years ago.
The group sought to disrupt the old fashion way of paying an estate agent commission of between two and three percent of the sale price. 
The saving on a $900,000 sale was put at $11,300, given an all up fee of $8,800.
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There were around 30 agents across New South Wales who will find themselves out of work, and 30 o so in Queensland. 
Purplebricks sponsored House Rules last year, however a cost-cutting measure saw them hand it over to Century21 for the current series.
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The NSW have 240 properties for sale, having sold 1,038 in two years, buoyed by an advertising campaign for listings by the celebrity builder, Barry Du Bois.
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Their revised so-called 'first-class package' was priced at $4,400, which pays for the marketing, with a further $4,400 payment when the sale of the property is successful.
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It was pitched towards typically outer-suburban and regional listings.
Its most upmarket listing was in Vaucluse, albeit a dump, which belonged to the socialite mortgage broker Lizzie Buttrose. 
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Vic Darvey, the London-based Purplebricks Group CEO said after much consideration it had "made the difficult decision to close the Australian business."
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"We’ve been operating here for two and half years and, unfortunately, we have been unable to make the progress in the Australian market that we’ve wanted, despite the tireless efforts of our employees.
"We will take no further listings in Australia, but intend to engage with our customers to finalise all existing agreements.
"This is not a decision we have taken lightly, but with market conditions becoming increasingly challenging, we do not believe that the prospective returns in Australia are enough to justify continued investment."  
Only last week UBS said the company was not likely to make money in Australia until 2022.
It was forecast that Purplebricks would potentially have to close its Australian operations to save the UK mothership.
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Michael Bruce, the group's founder and chief executive officer is stepping down from the business with immediate effect.
 
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Purple Bricks was a 'dressed up private seller': REIA deputy president

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Purplebricks Australia has announced its intention to exit the Australian market.
The decision comes amid the continued advertising campaign for listings by the celebrity builder, Barry Du Bois (below).
Even its revised fixed-fee sales model proved to be problematic for real estate agents, amid the slow down in the housing market.
Vic Darvey, the Purplebricks Group CEO said after much consideration it had "made the difficult decision to close the Australian business."
"We’ve been operating here for two and half years and, unfortunately, we have been unable to make the progress in the Australian market that we’ve wanted, despite the tireless efforts of our employees.
"Our present intention is that, over the next few months, we manage the process of closing down the Australian business in an orderly way, attempting to minimise disruption for both our people and our customers.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/5/Du%20Bois.jpg" alt="">
"We will take no further listings in Australia, but intend to engage with our customers to finalise all existing agreements.
"This is not a decision we have taken lightly, but with market conditions becoming increasingly challenging, we do not believe that the prospective returns in Australia are enough to justify continued investment."  
Only last week UBS said the company was<a href="/news/purplebricks-not-likely-to-make-profit-in-australia-until-2022-ubs"> not likely to make money in Australia</a> until 2022.
Last month it was forecasted that Purplebricks would potentially have to close its Australian operations <a href="/news/purplebricks-australian-agency-may-need-to-be-abandoned-to-save-uk-mothership">to save the UK mothership</a>.
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Michael Bruce, the group's founder and chief executive officer is stepping down from the business with immediate effect.
 In turn, the Board has appointed Vic Darvey, previously Purplebricks’ Chief Operating Officer, to the role of Chief Executive Officer and to the Board of Purplebricks.
Vic joined Purplebricks in January 2019.
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Purplebricks quits Australia after low commission model fails

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Leading investment bank UBS has predicted that shares in Purplebricks, the international low commission estate agency, will soon hit £1 each, the price at which it floated in December 2015.
In May last year its shares were trading at £3.54p but are now exchanging hands at £1.33p.
It suggested the company will have to borrow another £100m ‘soon’ to fund its mounting group losses.
UBS has based its prediction largely on the worsening position for Purplebricks in Australia, which the investment bank claims will not break even until 2022, three years later than expected, while its US operation is not likely to break even until 2025.
The investment bank says it expects Purplebricks’ Australian operation to generate revenues of £26 million next year on which it will make a loss of £12 million, while the company’s US operation could lose £53 million.
“Operations in Australia and the US are characterised by having very limited visibility on the businesses’ development and break-even horizon – Australia keeps being postponed and losses in the US are expected to worsen”.
Referring to Purplebricks’ recent decision in Australia to alter its up-front model to a more traditional post-sale fee one, UBS say the move “raised concerns about the future of online agents and the upfront fee model”.
UBS is also concerned that parts of both Australia’s and the UK’s housing market are experiencing tough conditions at the moment, claiming that Purplebricks’ operation has lost momentum.
Purplebricks share price has been falling for the past 12 months. 
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Purplebricks, which launched in Australia in 2016, recently opened operations in the NSW Central West by appointing an agent in Bathurst, David Chapman. 
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Chapman started his real estate career in 2012 with First National Real Estate, then was the co-owner of LJ Hooker Bathurst, moving on to Century 21 Bathurst and then leaving the industry in 2017. 
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Chapman told the local paper that Purplebricks "was the fastest growing real estate brand in Australia."
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Purplebricks not likely to make profit in Australia until 2022: UBS

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The cut-price online estate agency Purplebricks may have to abandon its struggling Australian operation to survive in the United Kingdon, analysts at investment bank Berenberg have warned.
Berenberg slashed its share price forecast for the embattled company from £4.70 to 80 pence.
It switched its rating from "buy" to "sell", sending the stock into an 8.4 per cent tailspin on the British share market on Friday.
The Financial Times reported: "It was more bad news for Purplebricks as Berenberg analysts turned sharply bearish on the online estate agent."
The analysis by Berenberg suggests Purplebricks is “running out of steam” in the UK.
However Purplebricks hit back saying it is looking to boost the business in Australia.
Investment bank Berenberg also said the company might have to quit the US to survive in its core British market.
"Having flown too close to the sun, with operations in five countries and cash burn of circa £7 million [$12.9 million] a month, we believe the group will be forced to seek additional equity at a significant discount or a doubtless expensive debt facility; or to abandon the Australian and US operations and retrench to the UK and Canada," the German private bank said in a note to its clients.
But Vic Darvey, the London-based group's global chief operating officer, rejected the analysis, reaffirming that Purplebricks was committed to the Australian market.
"Our transformation over the last six months is bearing fruit, and we are pleased with the recent growth in instructions and sales," he told The Australian Financial Review.
"Recently, we have boosted our agent numbers and expanded to new regions, bringing our proposition to more Australians."
Darvey joined the firm in February from MoneySuperMarket.com with experience of tech-focused, customer-centric businesses.
Purplebricks shares closed at 129.6 pence on Friday, down about 75 per cent from a mid-2017 high point of about £5.13.
The company's current bout of share price doldrums began in February, when it cut its revenue forecast.
One of the agency's co-founders, Michael Bruce, is now running the US business full-time, having previously divided his time between there and Britain. Meanwhile, his brother Kenny Bruce has only just returned from Australia to focus on the British business.
"In our view, the limitations of the upfront fee model are being laid bare," according to the Berenberg analysts' note which joined other analysts in questioning the business model.
"In our view, the limitations of the upfront fee model are being laid bare and the addressable market is proving much small than initially hoped," the Berenberg analysts said.
In Australia, the newly-installed CEO Neil Tavender and Kenny Bruce have overhauled the charging model, so that half the fee is paid upfront and half on completion of the sale.
"While the local market has softened, the fixed fee model continues to be an attractive proposition for sellers who want to maximise their returns," Mr Darvey said on Sunday.
The pressure on the Australian business was exposed when it reported an $18 million interim loss for the six months to October.
While Purplebricks has sold more than 5000 homes since launching in Australia in September 2016, the company now spends about 84c in advertising to generate a dollar of revenue.
The Australian Financial Review has regularly revealed an exodus of estate agents along with allegations of a "toxic culture" within the company.
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