<p>The final apartments in the most recently completed new development in Balwyn present some of the largest and most exclusive ever delivered in one of Melbourne’s most established and character-rich neighbourhoods.</p>

<p>Boutique developer&nbsp;<a href="https://www.apartments.com.au/developers/wulff-projects">Wulff Projects</a>,&nbsp;alongside partner <a href="https://www.apartments.com.au/developers/pga-group">PGA Group</a>, has just finished <a href="https://www.apartments.com.au/buildings/threadneedle-balwyn-1-5-threadneedle-street-balwyn-vic-3103">Threadneedle</a>, 17 home-sized residences designed completely for the owner-occupier.</p>

<p>Named after its location on Threadneedle Street, the new project has been shaped by the heritage fabric of Balwyn. It offers two low-rise buildings of eight and nine apartments respectively, designed to emulate traditional standalone homes.&nbsp;</p>

<p>[smartcode_project:default project_id=27816 project_image_fid=355582]</p>

<p>John Scaramuzzino, Director at <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, explains the design intention.</p>

<p>“Given the quiet residential character of the street with many homes dating back to the 1930s and 1940s, we approached Threadneedle wanting to appear less as a collection of apartments and more as a traditional residence. This led to creating not one but two buildings that could “breathe” with larger garden-based apartments functioning more like small homes.”</p>

<p>[smartcode_project:default project_id=27816 project_image_fid=355605]</p>

<p>The north-facing residences are nestled among extensive landscaped gardens by Ben Scott Garden Design, with over one-third of the site dedicated to greenery. The resulting setting is one of calm seclusion, where architecture and landscape work in tandem to offer immediate liveability.</p>

<p>With construction now complete, the final apartments include a top-floor, single-level penthouse residence priced from $2.8 million. This home offers three bedrooms, a dedicated study, two bathrooms plus powder room, and three car spaces with an oversized storage room.&nbsp;</p>

<p>Interiors prioritise spatial comfort and natural light, with three-metre-high ceilings, oversized internal doors and a full-width terrace oriented to the north, east and west.&nbsp;</p>

<p>[smartcode_project:default project_id=27816 project_image_fid=355604]</p>

<p>Floor-to-ceiling double-glazed windows ensure thermal performance across seasons, supported by automated external blinds, zoned heating and cooling, and a fireplace for added ambiance.</p>

<p>Each apartment has been individually designed to maximise privacy and garden outlooks. Kitchens combine refined finishes with practical considerations: stone benchtops, butler’s pantry, full-height joinery and concealed rangehoods.&nbsp;</p>

<p>The inclusion of dedicated home offices responds to contemporary living patterns, while bathrooms feature sculptural bathtubs and brushed nickel fixtures.&nbsp;</p>

<p>[smartcode_project:default project_id=27816 project_image_fid=355590]</p>

<p>Threadneedle also integrates best-practice sustainability measures, achieving a 7 Star average NatHERS rating. Initiatives include solar PV systems, rainwater harvesting for toilet flushing and irrigation, and high-performing building insulation. These elements enhance daily comfort while reducing ongoing maintenance and energy demand.</p>

<p>"We believe Threadneedle sets a new standard of design excellence and building quality for Balwyn,"&nbsp;Scaramuzzino added.</p>

<p>"It’s an architectural response we’re particularly proud of, and one we’re sure residents will be equally proud to call home."</p>

<p>[smartcode_project_cta:default project_id=27816]</p>


Staff Writer

Final homes remaining as Threadneedle, Balwyn completes construction

Joel Robinson

Sydney's top 15 new apartments developments set to launch in 2026

<p>Developer-builder <a href="https://www.apartments.com.au/developers/dasco-australia">DASCO</a> has pushed beyond the now-standard inclusions of rooftop pools and landscaped podiums at its recently launched new Epping project, Senso.</p>

<p>It has laid out over 4,000 sqm of resident-only amenity in a move designed to compete directly with low-density housing on livability, not just density. The result is a development that supports genuine daily use through purposeful spaces distributed across its five-building, 479-apartment precinct.</p>

<p>[smartcode_project:default project_id=134954 project_image_fid=4396]</p>

<p>Two rooftop pools form the anchor of Senso. One is a 27-metre lap pool adjoining a heated spa, designed for everyday fitness rather than just summer leisure. The second sits on a lower podium, allowing different buildings to share in vertical access and reducing crowding during peak times.</p>

<p>It is the secondary spaces that start to distinguish Senso from other large-scale suburban projects. A rooftop cinema is integrated into a landscaped terrace, offering open-air screenings with natural ventilation and passive cooling.&nbsp;</p>

<p>The inclusion of a “sensory walk”, an elevated boardwalk that threads through the site, suggests a rare investment in non-commercial, non-essential amenity: space for quiet movement that doesn’t double as access or traffic circulation.</p>

<p>[smartcode_project:default project_id=134954 project_image_fid=4402]</p>

<p>The gym and wellness centre, often relegated to a small ground-floor room in many builds, takes on more substance here. Residents have access to a fully equipped gym, as well as outdoor yoga areas and meditative zones that integrate greenery and natural light.&nbsp;</p>

<p>The Club Lounge is similarly designed to support multiple use cases, with a private dining terrace, kitchenette, workspace, and lockable wine storage. These aren’t superficial additions; their scale and spatial allocation indicate serious intent for frequent resident use.</p>

<p>[smartcode_project:default project_id=134954 project_image_fid=4391]</p>

<p>Importantly, Senso’s amenities are embedded within a site that spans more than 10,000 sqm, allowing for better separation between spaces and reduced noise spillover, a critical but often overlooked factor in high-density developments. This spatial generosity also enables multiple alfresco kitchens and communal terraces without compromising individual privacy or usable space.</p>

<p>While many developments make claims about lifestyle, few back it with this level of built infrastructure. Senso’s mix of dedicated fitness, wellness, social and passive green spaces suggests a conscious response to the post-pandemic shift in housing expectations, especially among owner-occupiers.&nbsp;</p>

<p>DASCO is one of several leading developers who have taken out Resilience Insurance's Latent Defects Insurance policy, providing buyers with a 10-year structural and waterproofing warranty, and giving them the ultimate peace of mind.</p>

<p>Senso is scheduled for completion in late 2028.</p>

<p>[smartcode_project_cta:default project_id=134954]</p>


The outdoor amenities elevating life at Senso, Epping

<p>Following the proposal by the Minns Labor Government to rezone Parramatta Road to create up to 8,000 new homes, prominent developer Ceerose has gone to the NSW Gov to increase the density of its new mixed-use residential building in Leichhardt.</p>

<p><a href="https://www.apartments.com.au/builders/ceerose">Ceerose</a>, founded by Edward Doueihi nearly three decades ago, has filed plans for 154 apartments above ground-floor retail at 307-315 Parramatta Road, a key corner site near Norton Street, the main high street strip in Leichhardt.</p>

<p>It's an upsize from the previously approved scheme of 63 apartments across a seven-storey building.</p>

<p><img alt="Ceerose" data-entity-type="file" data-entity-uuid="ba1ae75b-5f08-43fb-b8d5-3de6d9f6ef71" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-04%20at%2010.31.39%E2%80%AFAM.png?VersionId=yA3hBBLPH4ev7MsAE0_hieXeqiFqBUb7" /></p>

<p>The project is being advanced through the State Significant Development (SSD) pathway, with concurrent rezoning sought to facilitate the proposal. The 10-storey development would rise over a four-level basement and deliver two retail tenancies, one a larger-format offering and the other a smaller “hole in the wall” space, addressing the Parramatta Road frontage. 21 of the apartments are dedicated as affordable housing.</p>

<p>According to the Urban Design Report by Architecture AND, the scheme includes a podium and tower configuration, with a fine-grain, two-storey parapet street wall that references the traditional shopfront rhythm along the corridor. “An elegant tower form is proposed, combined with a characterful two storey frontage... articulating it as two related buildings, providing consistency with the rhythm and grain of Parramatta Road,” the report notes.</p>

<p>The residential component is split across two slender towers set back from the street edge, a design move aimed at preserving solar access and reducing perceived bulk. This massing strategy also seeks to improve residential amenity by focusing scale toward the quieter northern interface, away from Parramatta Road’s noise and pollution.</p>

<p><img alt="Ceerose" data-entity-type="file" data-entity-uuid="347f2f8f-5d36-4388-b40a-2e77380b9c19" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-04%20at%2010.31.02%E2%80%AFAM.png?VersionId=xvyUE2ujT1lzivXTo.mHBJFF4SmfgLtz" /></p>

<p>Architecture AND has worked with Ceerose on previous Inner West projects, and cites a deep familiarity with the local character. Their design draws heavily on context, heritage, and sunlight access considerations, and engages with the Inner West Council’s “Our Fairer Future” strategic planning framework.</p>

<p>The site spans 2,712 sqm and is located near key intersections with Catherine Street, Hay Street, and Redmond Street. It adjoins a public carpark to the north and is within walking distance of Stanmore and Petersham stations. It is also flagged in state and local planning strategies, including the Parramatta Road Corridor Urban Transformation Strategy, as a suitable candidate for increased density.</p>

<p>Ceerose recently completed The Alex Collective on McEvoy Street in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay.</p>

<p>The Parramatta Road corridor is coming to life with the proposed rezoning which is serviced by a significant number of bus, light rail and train routes.</p>

<p>Deicorp is progressing with its $1.8 billion <a href="https://www.apartments.com.au/new-apartments/kings-bay-village-five-dock-53-75-queens-road-five-dock-nsw-2046">Kings Bay Village</a> precinct on Parramatta Road in Five Dock, as is <a href="https://www.apartments.com.au/news/nsw/toga-to-push-on-with-five-dock-mixed-use-masterplan">TOGA further down the street</a>. Those two projects alone will bring nearly 2,000 new homes to Parramatta Road.</p>


First look: Ceerose plots mixed-use Leichhardt development on Parramatta Road

<p>North Sydney's landmark 'SBS Building' on Alfred Street is set to be demolished to make way for a new mixed-use residential tower in the booming North Sydney.</p>

<p>Commercial property group FiveX is behind the plans for a <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">39-storey tower</a>, the latest project to advance under the NSW Government’s Housing Delivery Authority pathway.</p>

<p>They are proposing 184 apartments above retail spaces, which will replace the existing 20-storey commercial building. FiveX was set up more than five decades ago by Joshua and Marko Berger. It is currently led by Joshua's son Lesli.&nbsp;</p>

<p><img alt="First look: Fivex plans 39-storey residential tower at 275 Alfred Street, North Sydney" data-entity-type="file" data-entity-uuid="2efa0980-53fa-4cca-9f9e-9c3c845d4746" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29%20%281%29_0.png?VersionId=y_YyPMq3NQLfYRs84pP4os9UgWiMLp75" /></p>

<p>According to the Architectural Design Report by <a href="https://www.apartments.com.au/architects/fjc-studio">FJC Studio</a>, the slender tower form has been deliberately designed to respect the site's transitional setting at the southern gateway to the North Sydney CBD, where high-rise towers give way to lower-scale residential precincts.</p>

<p>"The slender tower form and articulated podium establish a respectful relationship with nearby heritage and low rise buildings, including the Whaling Road Heritage Conservation Area,” the architecture firm noted, adding that the tower “completes a missing link in the urban fabric” while enhancing the Alfred Street streetscape.</p>

<p>The proposed building will include a mix of one-, two- and three-bedroom apartments, with 15 percent of the gross residential floor area allocated as affordable housing. There is an agreement already in place that those apartments will be managed by Evolve Housing.</p>

<p>The project aligns with broader state housing objectives, including the National Housing Accord target of delivering 1.2 million new homes by 2029. The Scoping Report filed with the State Significant Development Application (SSDA) suggests the site "presents no impediments to rapid delivery,” with construction able to commence within 12 months of receiving consent.</p>

<p>North Sydney has been one of the most popular suburbs in Sydney for new and off the plan apartment development, but hasn't had the supply to keep up with demand, until recently.</p>

<p>AURA by Aqualand was, for a long time, the only off the plan apartment building on the market. That completed last year, and has sold the majority of its 386 luxury apartments. Recently ALAND launched <a href="https://www.apartments.com.au/new-apartments/the-walden-173-179-walker-street-north-sydney-nsw-2060">The Walden</a> on the same street, selling over $100 million within just a few hours of its launch, while developer CASA also launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/the-mclaren-north-sydney-45-mclaren-street-north-sydney-nsw-2060">The McLaren</a>&nbsp;in the same precinct.</p>


First look: Fivex plans 39-storey residential tower in booming North Sydney

Residential Building

<html><body>
<p>Once again we see a fast backtrack by many commentators who predicted a strong easing of real estate prices for the March quarter of 2016.</p>
<p>Then again there are those (like myself) who predicted an about-turn in property prices which is precisely what has happened. For the last four years the December quarter has been the worst performing quarter which can be simply put down to human fatigue.</p>
<p>For those who read the property markets wrong they then seamlessly move to Plan B – the debt debate and yes, Australia’s housing market does have a $1.45 trillion debt blister.</p>
<p>This debate is then marinated with housing affordability, which I must admit has everyone confused given the apparent lack of care or interest. Sydney and Melbourne, and Brisbane to a lesser extent, are flooding the markets with new developments, although in the majority of instances these properties are sold direct to non – resident Australians, so how does that work?</p>
<p>Take Sydney for instance – in the 1980’s the average house price ratio to median yearly household income was 3.0. In 2005 this ratio increased in Sydney to 8.5 and in 2015 it climbed to a staggering 12.2. I can’t see this breaking the back of house prices but I do see plenty of trouble ahead for the Sydney apartment market which has approximately another 22,000 new apartments in the investment pipeline over the next 24 months.</p>
<p>This is the market that requires closer examination and should not be confused with the family house market as the two are distinctly opposite.</p>
<p>We also need to look under the bonnet of the Australian economy to see what is driving it more particularly GDP. Sydney is way ahead of the pack with a 23.3 percent share overall Sydney has outperformed the rest of Australia for the last three years. Next in GDP is Melbourne with 17.7 percent, then Brisbane at 9.6 percent, Perth at 9.5 percent and then Adelaide at 4.6 percent.</p>
<p>If you look at the Green Square development (currently under construction) located between Alexandria and Moore Park in South Sydney – this development will deliver 27,276 apartments so they would be hoping that 60 percent are going to owner occupiers, as if! It is more like 80 per cent to property investors this will send rents in that area spiraling down as there will be a market flood when they all hit the market seeking tenants.</p>
<p>Investor beware! Australia is currently locked in to its biggest apartment development boom ever seen and the big problem is that these developments are congested into the same post codes and are not spread, so a cold can quickly turn to pneumonia.</p>
<p>What scares me the most is that we can trace this boom starting back in December 2008 when the ratio of foreign buyers was moved from 50 percent of new developments to 100 per cent. This ignited property developers and respective state and territory governments to move over night without any analysis to high density.</p>
<p>Again without analysis these developments have been contained into developing areas – so what if the foreign buyers decide not to proceed as the vast majority of these developments are yet to be completed?</p>
<p>It will be property investor mayhem because it’s one big Ponzi scheme totally reliant on the good faith of foreign investors completing on their transactions. Melbourne has another 123,622 apartments in the pipeline and Sydney has 88,013 and there are plenty more on the way awaiting approval. In the case of New South Wales, Victoria and Queensland the state governments are only focused on millions and millions of dollars in stamp duty and land tax.</p>
<p>Sorry to tell you but nobody has a contingency plan should these new developments start to collapse, because if they do the prices will drop 30 per cent minimum overnight.</p>
<p>So whilst housing affordability is directly a responsibility of government I, like many, are not feeling comfortable at how they plan to make it more affordable. With Sydney and Melbourne building the lion’s share of apartments we should also note they are contributing 41 per cent of the Australia’s GDP.</p>
<p>This is precisely the conversation our elected politicians need to be having and this should have started years ago. We may be building an apartment revolution but just like the share market we could be looking at the biggest ‘shorting’ in the property market we have ever seen before too.</p>
<p>Very, very happy to be wrong on this.</p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 72</p>
<p>• Number of houses on the market last week – 54</p>
<p>• Number of houses on the market this week – 48</p>
<p>• Number of apartments on the market this time last year – 61</p>
<p>• Number of apartments on the market last week – 42</p>
<p>• Number of apartments on the market this week – 45</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year – 6</p>
<p>• Number of houses on the market last week – 4</p>
<p>• Number of houses on the market this week – 6</p>
<p>• Number of apartments on the market this time last year – 17</p>
<p>• Number of apartments on the market last week – 28</p>
<p>• Number of apartments on the market this week – 28</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 15</p>
<p>• Number of houses on the market last week – 7</p>
<p>•Number of houses on the market this week – 6</p>
<p>• Number of apartments on the market this time last year– 36</p>
<p>• Number of apartments on the market last week – 26</p>
<p>*Number of apartments on the market this week – 25</p>
<p> </p>
<p><em><span>ROBERT SIMEON</span> is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000. </em></p>
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robertsimeon-hRNTwJyXkQ

Are we about to see our property investors short the market? Robert Simeon

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<div>There have been many predictions of a Melbourne property crash over the past decade.</div>
<div> </div>
<div>The crash was variously to be triggered by Baby Boomers retiring, China, falling iron ore prices, the mining cliff, spiralling bank funding costs, slowing population growth, apartment oversupply, budget deficits, the loss of the AAA-rating, rising unemployment, higher interest rates, the Ebola virus, and dozens of other things. </div>
<div> </div>
<div>I've been pretty bearish on a few of these points myself - in particular I worried about the overbuilding point a few years back. </div>
<div> </div>
<div>And yet, Melbourne's housing market is powering on harder than ever. </div>
<div> </div>
<div>One of the biggest hurdles in recent months has been how the housing market would respond to additional levies on foreign investors and a crackdown on interest-only loans domestically.</div>
<div> </div>
<div>July's housing finance figures delivered an emphatic answer: record homebuyer commitments of $6.12 billion in a single month, for a crunching +12 per cent year-on-year increase. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/11/A3.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><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/2017/09/11/A3.jpg" alt=""></div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Stock absorbed</span></strong></div>
<div> </div>
<div>The iron ore price didn't crash in the end, and bank funding costs have remained very low - discounted home loans are now available from just 3.65 per cent, and lenders are busily dropping their rates to entice new business.</div>
<div> </div>
<div>Meanwhile, the Baby Boomer cohort became net buyers of property in search of return on their capital. </div>
<div> </div>
<div>One of the surprising outcomes through this cycle has been the sheer pace of population growth in Melbourne, which just got faster, and faster, and faster, at the expense of Perth, Adelaide, and any number of regional centres.<br><br>
</div>
<div>Until this rate of population growth turns down in Melbourne, even record building activity can barely keep pace, and vacancy rates have fallen to their lowest levels in about 7 years. </div>
<div> </div>
<div>Median asking rents for apartments in Melbourne are now about +12 per cent higher over the past 3 years, according to SQM Research, while asking rents for houses have increased by about +11 per cent. </div>
<div> </div>
<div>Unlike Sydney, Melbourne has affordable suburbs, and this is even helping to attract migrants internally from the harbour city.<br><br>One of the most vociferous property bears of the past decade, Philip Soos of LF Economics, now predicts that the next property correction won't happen for another 9 year, in 2026 (not that I'd reach too much into that). </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Jobs outlook</span></strong></div>
<div> </div>
<div>The global economy generally looks set for a stronger period ahead, with all regions now delivering growth. </div>
<div> </div>
<div>Australia's economy has added full time jobs at a tremendous pace in 2017. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/11/A1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><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/2017/09/11/A1.jpg" alt=""></div>
<div> </div>
<div>However, that dream run looks set to slow a little as we head in 2018, once residential building slows down, while the inflation figure will be re-weighted for the December 2017 quarter, probably reducing the inflation rate even lower than it already is. </div>
<div> </div>
<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
</div>
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pwargent-M4siyDbqQY

Melbourne property correction nowhere to be seen: Pete Wargent

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<div id="post-body-3241568079110976919" class="post-body entry-content">
<div>Australia's construction boom hit "peak apartments" in the March 2016 quarter the latest Building Activity data from the ABS showed, with developers now beginning to crunch their way through the record number of dwellings approved but not yet commenced. </div>
<br><div class="separator"><a href="/images/2016/07/18/A1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/07/18/A1.jpg" alt=""></div>
<div> </div>
<div>Total quarterly commencements accordingly rose to a record high of 59,684.<br><br>Attached dwelling commencements - townhouses, units, and apartments - were up by 21 per cent from the first quarter of calendar year 2015, leading to just shy of 230,000 dwellings commenced in the year to March 2016, also a record.<br><br><div class="separator"><a href="/images/2016/07/18/A1-1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/07/18/A1-1.jpg" alt=""></div>
<br>As you can see in the chart above, annual house commencements have already passed their peak for this cycle, with Sydney in particular constructing fewer detached dwellings through the cycle as the harbour city becomes more dense - building up, not out - while on the other hand Melbourne continues its heroic sprawl.  </div>
<div> </div>
<a href="/images/2016/07/18/A6.jpg" target="_blank">Click to enlarge</a>
</div>
<div class="post-body entry-content">
<img src="/images/2016/07/18/A6.jpg" alt=""><br><br><div>Annual attached dwelling commencements are now at their highest ever level.</div>
<br><a href="/images/2016/07/18/A5.jpg" target="_blank">Click to enlarge</a>
</div>
<div class="post-body entry-content">
<img src="/images/2016/07/18/A5.jpg" alt=""><br><br><div><strong><span style="text-decoration: underline;">Completions slower to come online</span></strong></div>
<div> </div>
<div>The curious aspect of this cycle is that with so many of the commencements being multi-unit developments, the supply has been considerably slower to come online.<br><br>Why? Because on average it's much faster to build a house on a shovel-ready block of greenfield land (perhaps only a few months) than it is to deliver a block of apartments on a brownfield site, which could chew up a period of several years from approval to completion. <br><br>The outcome of this is an epic supply bottleneck.<br><br><strong><span style="text-decoration: underline;">Bottleneck!</span></strong><br><br>There are now more dwellings stuck in the "under construction" phase than we have ever witnessed before: a thunderous total of 218,262 dwellings, more than 150,000 of which are attached dwellings.<br><br>If you can see a lot of cranes on the city horizon, this is why!<br><br>
</div>
<div>A record 74,530 of the dwelling units under construction are located in New South Wales (including more than 56,000 attached dwellings), 67,748 are in Victoria (nearly 48,000 of which are attached dwellings), and 39,816 are in Queensland (more than 31,000 of which are attached dwellings, an eye-popping ratio).<br><br>In other words, lots and lots of apartment projects are underway but not yet finished.</div>
<div> </div>
<div>Indeed, completions have been so slow to come online that actual dwelling completions have declined for the past four quarters on the bounce, from 49,733 in the first quarter of last calendar year to just 45,619 in the first quarter of this year.</div>
<br><div class="separator"><a href="/images/2016/07/18/A2.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/07/18/A2.jpg" alt=""></div>
<br><div>This huge lag between record approvals and completion helps to explain why super-strong population growth in the two most populous capital cities has to date continued to outpace and absorb dwelling supply. </div>
<div> </div>
<div>Annual attached dwelling completions in NSW (22,400) and VIC (23,000) not only remain below previous peaks, but are also tracking way behind the romping pace of state population growth of 106,000 and 109,000 per annum respectively.</div>
<div> </div>
<div class="separator"><a href="/images/2016/07/18/A3.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/07/18/A3.jpg" alt=""></div>
<br><div>
<em>The Australian</em> recently reported an estimated year's oversupply of dwelling based upon an assumption of 47,000 net additions to the dwelling stock per quarter. </div>
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<div>Yet reported vacancy rates in Sydney and Melbourne - even if the figures are arguably incomplete - have actually declined, the slowdown in rental price growth as much reflective of the number of <em>investors</em> in the market through this cycle as the number of physical dwellings.<br><br>Because the record high volume of units and apartments under construction are slower to come online than houses, the assumptions reported by <em>The Australian</em> have been over-egged when compared to the number of actual completions by some 85,000 dwellings. </div>
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<div class="separator">Moreover these assumptions overlook that up to 25,000 commencements per annum simply replace existing stock, as pointed out by the good Prof. Philips of the ANU.</div>
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<div class="separator">The picture is complicated somewhat further by the addition of granny flats which are not well captured by the data, but after accounting for demolitions the new supply has so far had a relatively muted impact in Sydney and Melbourne.</div>
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<div>What has transpired to date is localised bursts of oversupply, not nothing too dramatic at the macro level.</div>
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<div class="separator"><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
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<div class="separator">There are more than 150,000 units, townhouses, and apartments now under construction in Australia, easily the highest figure on record, so construction activity will remain at or close to full capacity for some time yet. </div>
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<div class="separator">Attached dwellings can take a long period of time to complete, so to date at least the impact of new supply hasn't been all that great. </div>
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<div class="separator">But what is Australia going to do with all these new high-rise dwellings during a period when its post mining-boom economy isn't supporting such high levels of immigration? </div>
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<div class="separator">Mr. Turnbull does have a plan. And like most of Australia's cunning plans these days, it involves tapping demand from China. </div>
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<div class="separator">It's only been a fortnight since the new "streamlined" student visa rules kicked in, but early anecdotal indications suggest that the plan might just be working. </div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Making sense of Australia's super-duper construction boom: Pete Wargent

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<p>Property developing can throw many different challenges at you and one thing I have learnt after managing over one hundred developments is that there is always a solution to a problem.</p>
<p>The trick is to understand what possible issues could arise and preparing yourself for them. </p>
<p>You see, the development process is not an exact science because every development site is different.  So the construction costs will rarely if ever, be the same from project to project, even if you are using the same plans.</p>
<p>Depending on the fall of the site, some will need more retaining than others, some may need more concrete due to the length of the site and driveways and then there are the sites where you find unexpected items lurking below the surface. We once uncovered an old asbestos shed that had been buried many years ago. This did not come up on our geo technical report and had to be removed as contaminated rather than normal waste. </p>
<p>If you develop in the same area, you can work out fairly quickly, after a few developments, what is likely to happen. With experience, you will be able to look at a site and determine how much retaining may be required. You can also base your construction estimates on the soil type as an example. If developing within the same land estate, it’s likely to contain similar soil types. The engineer uses the soil and site classifications for the slab design. Once the site preparations and slabs are laid, most of the unknown or little surprises are behind you.</p>
<p>But before construction commences, there is a process to follow. </p>
<p>When pricing a development and running feasibilities, it is important to understand that your building estimate is an organic creature. By this I mean the building estimate you start with will nearly always be different to the one you end with.  It will evolve throughout the process as you obtain more and more details.  Once you have all the fine details, the building estimate can be finalised to the fixed price builder’s tender. </p>
<p>When designing our villa plans, we follow this process:</p>
<p>1  Concept Planning – this show the number and size of villas we can get on the land. There is not too much detail on the plans at this stage.</p>
<p>We run the numbers to see if the project is viable.</p>
<p>1  Development Application (DA) plans – these are started after we’ve secured the land and the plans give enough information to satisfy council’s requirements.</p>
<p>2  Construction Certificate (CC) plans – more detail is added to the plans including the engineer’s drainage and slab design.</p>
<p>The starting point for our build estimate will be based on similar projects that we have recently completed and an allowance for the different development site.</p>
<p>This progresses to an estimate based on the Concept Plan.  Still a very ‘loose’ estimate as there is usually not enough detail on the Concept Plan for the builder to have all information needed.  The build estimate we have at this stage will tell us whether we are tracking within budget.  If not, we can make the necessary changes required, perhaps reducing the size of the villas working with both our builder and architect to design the right dwellings for our project to be successful.</p>
<p>Once the Concept Plan is approved and the site secured the architect will proceed to full DA plans.  It is here that much more detail is added and we will have our builder price the DA plans.  Again, this does not give us a final build cost but we will be getting closer to the expected outcome.  Once approved by our client, the DA plans are finalised and the DA is prepared.</p>
<p>During the DA process, council may request some changes to the plans, so it is important to understand we are still ‘evolving’ at this stage. We also need to review the Conditions of the DA Consent before we have more detail to finalise the build costs.</p>
<p>Once council have approved the DA, we will start to prepare the CC plans.  Engineers will be briefed and a drainage and engineered slab design or footings for the foundations will be produced. More detail is added to the CC plans, finalising levels and double checking schedules. </p>
<p>Before we lodge the CC plans with our private certifier we will have our builder issue a third costing. It is this costing that will give us the final build costs...well almost.  We still need to have the CC approved and ensure there are no further revisions to the plans required.  </p>
<p>After we have the CC stamped plans, our builder will issue their final tender and building contract. This will be a fixed price contract; however, there may still be a few items that will be ‘provisional’. They are usually some site works, removal of fill and retaining walls.  The builder may mark these items as provisional as they won’t know until works proceed exactly what the cost is. For instance, if rock is hit during the site cut, this will increase the site costs. If the site cut differs slightly to the plans, this may impact on the height of retaining walls.  So these ‘provisional’ items will be charged at actual cost whether it is lower or higher. We do often enjoy credits on these items when the allowance is not required.   </p>
<p>So you can see how the build estimate must evolve through the development process and until your development is completed, you really won’t know the exact cost.  It’s important you allow a contingency amount for variations that may crop up along the way. </p>
<p>As a developer, you will embark on a challenging journey from start to finish and the path you choose can be simplified with the help of a project manager to guide you along the way.  Always take the time to have full builder’s estimates done at each stage to avoid any nasty surprises. </p>
<p><em><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a><a href="https://www.propertybloom.com.au/">.</a></em></em></p>
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Determining construction costs from the outset of your development: Jo Chivers

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<p>Quite remarkable that the Lower North Shore property markets are showing no signs of slowing as we edge closer to Christmas.</p>
<p>What is very clear is that all but guarantees another very strong March quarter for 2017, where beyond that would be anyone’s guess.</p>
<p>Whilst many expect that the Reserve Bank of Australia will cut the cash rate in the next six months we are now starting to witness some small Australian lenders increasing their rates which sends a loud signal that we may now be witnessing the end of the low rates. I made a phone call and was advised that ING have the lowest rate presently at 3.84 percent over five years fixed. ME head of home loans, Patrick Nolan, said: “The increases were based on increasing swap rates – up 40 basis points since the end of August – and increasing cost of deposit funding.”</p>
<p>Yes, there will be casualties, more particularly the interest only borrowers. I read a sage quote by a banker on Twitter who said: “If anyone is taking out a 20 – year mortgage and they don’t believe rates will rise, I’d ask them if they should be making this investment. It is an unrealistic proposition,” he said.</p>
<p>What needs to be factored in is that wages rose by 1.9 per cent during the September quarter, which was a record low according to the Australian Bureau of Statistics.</p>
<p>The NSW Government’s property development arm known as the Greater Sydney Commission released this week the first draft for the five – year housing targets by Local Government Area. A total of 23,250 new properties have been approved, with Mosman to build 300 new properties and North Sydney 3,000 and the Northern Beaches an additional 3,400.</p>
<p><a href="/images/2016/11/28/Draft-Districts.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/28/Draft-Districts.png" alt=""></p>
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<p>I really find this quite intriguing with present data suggesting that Sydney is now facing an imminent over – supply. NSW is in the process of building 55,000 new apartments with thousands more on the planning desks awaiting approval.</p>
<p>As these apartments are completed this will be a significant lever in reducing rents. When I look at Mosman I observed from CoreLogic that the rental median for a house in Mosman is $1,600.00 per week which is a 16.4 per cent increase over the last five years. The rental median for an apartment is $580.00 per week which is a 16.0 per cent increase over the last five years.</p>
<p>From an economic perspective, this is good news for NSW as it will drive employment as well as productivity. Property investors need to look closely at where their respective investment properties are within the Local Government Areas to ascertain what impact this unprecedented apartment building bonanza will have. One would have to say that in the short – term in the case of Mosman that apartment rents will be coming down. Even more so in North Sydney as they have a massive 3,000 apartments to be built over Mosman’s 300. For the fortunate ones if you own a residential development because it just doubled and trebled in value with the new high density legislation.</p>
<p>What needs to be acknowledged is this is what we call the new market and should not be confused with the established housing market as we are building apartments not houses. Although one point that springs to mind is that investors will be forced to renovate existing apartments if they are going to compete in the market on a rental dollar basis as they will be up against brand new apartments.</p>
<p>The building industry has never seen a better future although little consideration has been given to existing property owners who must contend with greater traffic congestion on our roads. So, if you thought our roads are congested now this week’s announcement will only make the situation worse.</p>
<p>Over time this will see more businesses moving to the suburbs, so a smart town planner must be marinating these development sites with a combination of commercial, retail and residential. Although we all know that this won’t happen as that would be the intelligent outcome to try and ease traffic congestion. Happy to bet now that these new developments will be strictly residential only although I will be more than happy to be wrong with this.</p>
<p>What is happening in Sydney will also see many leave Sydney for quieter and a more stable lifestyle. Whatever the outcome this will have plenty of Sydneyites re – considering their respective futures.</p>
<p><em>ROBERT SIMEON is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. </em></p>
<p><em>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000.</em></p>
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An insight into Sydney, now one big building site

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<p>Australia is again building the biggest houses in the world, data commissioned by CommSec from the ABS has found.</p>
<p>The average new house built in 2019/20 was 235.8 square metres, up 2.9 per cent on the year and the biggest increase in 11 years.</p>
<p>Latest data from the US, from 2019, saw their average house size build drop to 233.1 square metres, the fourth year in a row the figure has declined. Its most recent contraction was three per cent.</p>
<p><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/2020/12/Houses%20v%20US.jpg" alt=""></p>
<p><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/2020/11/9/biggest%20houses%20to%20US.jpg" alt=""></p>
<p>It's not just housing which is getting bigger either.</p>
<p>The average size of an apartment in Australia is six per cent higher over the year, hitting a decade high of 136.8 square metres.</p>
<p>The ACT built the biggest houses in Australia in 2019/20, ahead of Victoria, New South Wales and Western Australia.</p>
<p><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/2020/12/Houses%20Built%20jpeg.jpg" alt=""></p>
<p><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/2020/11/9/Houses%20Commsec.jpg" alt="">Despite lifting six per cent last year, the average house in NSW is six per cent smaller than Victoria.</p>
<p>The smallest new houses built were in Tasmania, an average size of 179 sqm.</p>
<p><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/2020/11/9/AU%20houses%20state.jpg" alt="">The biggest 'other dwellings', which incorporates townhouses and apartments, are found in Victoria, with an average of 155 sqm, followed by Western Australia at 150.5 sqm.</p>
<p>New South Wales (121.3 sqm) and Tasmania (132.5 sqm) have the smallest apartments and townhouses.</p>
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<p>CommSec chief economist Craig James says that before last year, Aussie home buyers had been building progressively smaller houses on average. </p>
<p>"Aussies had embraced apartments as well as smaller houses on smaller lot sizes. In fact the size of the average house built last year (2018/19) was the smallest in 17 years," James says.</p>
<p>“So while Aussies built bigger homes over the past year, the big question is whether the decade-long downtrend in home size has ended. And COVID-19 may play a big role in answering that question.</p>
<p>“Government-imposed lockdowns in response to the COVID-19 virus have prompted more Aussies to re-assess their housing needs. With more time spent at home for both leisure and work, some Aussies are looking for bigger homes. Others are coming to the belief that the layout of their home needs changing.”</p>
<p>In 2009 Australia was building the biggest detached houses they had ever built, the biggest in the world. But they relinquished that title in 2013.</p>
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Australian houses are the world's biggest: CommSec

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<p>Work has commenced on a new $85 million apartment development in the Adelaide CBD.</p>
<p>Penny Place (above), developed by Flagship Property, will have 152 apartments. Over half have already sold off the plan. </p>
<p>Flagship Property Holdings chief executive Mark Jarman broke the ground with Stephan Knoll, the South Australian minister for planning. </p>
<p>The block sits next door from the Kodo apartment development, Adelaide's tallest residential tower (below).</p>
<p> <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/2019/11/25/Kodo%20-%20dusk.jpg" alt=""></p>
<p>In September the first residents moved in to the 30 storey building which soars over 100 metres above the street.</p>
<p>Also developed by Flagship, the $100 million Woods Bagot-designed building has 202 apartments.</p>
<p>Located near Victoria Square, Kodo includes a four-level podium from ground level, which incorporates car parking, bicycle parks and residential apartments.</p>
<p>On the top floor of the podium sits an exclusive resident sky garden, with landscaped entertaining and recreation areas, as well as surrounding apartments with mezzanine floors and generous private terraces.</p>
<p>Additional one, two and three-bedroom apartments rise up another 26 levels, offering sweeping views towards the Adelaide Hills and coastline.</p>
<p>There's also be ground floor retail and commercial tenancies.</p>
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Residents move in to Kodo, Adelaide's tallest residential building as ground breaks next door at Penny Place

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<p>EXPERT OBSERVATION </p>
<p>In the lead up to the NSW election, the NSW residential building industry is being strangled in red tape and taxes.</p>
<p>Some 43% of the cost of a new house and land package is made up of taxes, charges and levies from all three tiers of Government.</p>
<p>Despite this, policies implemented by the State government continue to add to the tax burden for the housing industry.</p>
<p>By way of example, in the past 18 months, the following regulations and taxes have been implemented or proposed, each one having a negative impact on housing affordability and supply.</p>
<ul>
<li>Removing caps on section 94 development contributions adding $20,000 – $40,000 per dwelling;<br><br>
</li>
<li>Increasing the BASIX energy efficiency targets adding an average of $10,000 per new dwelling;<br><br>
</li>
<li>Delaying the start of the medium density housing code to deal with Sydney’s “missing middle” for terrace and low rise medium density housing projects reacting to unreasonable and simple incorrect claims that the code would promote high-density housing after promoting the savings of around $15,000 in approval costs for these type of dwellings from the implementation of the code;<br><br>
</li>
<li>Introducing a 2% defect bond and an additional double barrel inspection regime for strata developments that will be ineffectual and add to the cost of all new strata projects and<br><br>
</li>
<li>Proposing a Greater Macarthur state infrastructure contribution (SIC) of $40,000 per dwelling, along with new SIC levies in the Hunter.</li>
</ul>
<p>These changes can easily account for an additional $70-$90,000 per dwelling and once applied, they may be subject to stamp duty.</p>
<p>There are many things our state politicians can consider to help housing supply and affordability that don’t require drastic structural change.</p>
<p>For instance, the NSW Productivity Commissioner should be directed to undertake a detailed review of the regulatory burden and costs to the residential sector with the aim of reducing red tape, increasing productivity and thus improving housing affordability.</p>
<p>All new legislation and regulation impacting the housing sector should be subject to a thorough public regulatory impact assessment.</p>
<p>Adding to the problem of housing affordability and rental affordability with new red tape and taxes is not the solution to ensuring people in NSW can afford to buy or rent a home. More needs to be done now, politicians need to get serious and focus on real changes that will make a real difference to the cost of new homes in NSW.</p>
<p><em><strong>David Bare</strong> is HIA Executive Director NSW.</em></p>
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Taxes in NSW strangling future housing: HIA'S David Bare

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<p>Burbank Homes has secured an accolade at the recent 2018 at the Master Builders Association New South Wales Excellence in Housing Awards.</p>
<p>The homebuilder secured the best ‘Exhibition/Project Home’ in the $400,001 - $500,000 price category for its Denman 257 display home in Googong.</p>
<p>Denman 257 offers 256 square metre properties priced from $400,001.</p>
<p>The Burbank Group Managing Director, Jarrod Sanfilippo, said the group was proud to be recognized for its work by its peers.</p>
<p>“We entered the New South Wales homebuilding market in 2016, building on our success in Victoria and Queensland, and have seen a strong response to our innovative home designs, particularly with first and second homebuyers,” said Sanfilippo.</p>
<p>“We are one of the only major homebuilders in NSW with a sloping lot design on display and this has proved to be popular as customers want to see what the design looks like first hand when embarking on challenging home builds.”</p>
<p>The Denman 257 display home is open at the Googong estate, Leon Street, Googong, New South Wales between 12pm – 5pm Monday to Friday and 11am – 5pm on weekends.</p>
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