A prominent Newcastle developer says he is reviewing all of his projects in light of new planning rules allowing greater height and density in exchange for affordable housing.

the NSW government on June 15 released a plan to address the housing supply shortage, by offering incentives for developers to include affordable housing in their projects.

Housing developments valued at more than $75 million which allocate a minimum of 15 percent gross floor area to affordable housing can have 30 percent more floor space per ratio and 30 percent more height than local environment plans.

The developments will also gain access to the State Significant Development planning approval pathway, which often results in faster planning decisions.

Affordable housing is open to people on a wider range of incomes than social housing and is for people whose income isn’t high enough to pay rent where they live or work.

Projects including the store appartments, Dairy Farmers Corner and the West Village development on the former spotlight site are valued at more than $75 million.

Dairy Farmers is being developed by Third.i Group. Director Luke Berry said Third.i would all of their projects to see if they are eligible for the proposal.

“This will include our current and future pipeline of apartment developments as well as our large scale house and land communities,” Mr Berry said.

We want to give everyone an opportunity to live in accessible locations full of amenity so watch this space if we get government support on our projects there will be some really big announcements coming soon from our world.”

Mr Berry said the change was needed to mitigate the housing crisis and would make affordable housing “more accessible to those people in need of it”.

“If we don’t do something drastic today and maximise the sites that can support increases in density without over developing them, its the future generations that will suffer because of it,” he said.

Newcastle lord mayor Nuatali Nelmes said the announcement was “a great step”towards ensuring more affordable housing was included in new developments.

“City of Newcastle is in a position as the only metropolitan council to retain planning powers in the state,” she said.

“It’s my view that while Newcastle has a great track record of high-quality and sensible development from a planning perspective, we’ve needed leadership from the NSW government to ensure adequate social and affordable housing is contained within new large-scale developments, particularly in the emerging CBD in Newcastle West.

“The premiers announcement is a great step in that direction.

“i’ve written to the premier to advise that City of Newcastle is willing to work closely with the NSW government to explore opportunities to fast-track and streamline construction of more social and affordable housing throughout Newcastle, and i look forward to continuing to work with the government to continue to deliver more housing for Novocastrians in need.”

The changes are set to come into effect later in 2023.

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One of the city’s older and most prominent office buildings is being repurposed to include a state of the art office precinct inspired by Google workspaces.

The five-level building on the corner of stokes and Sturt St, is also set to house state government offices with a heads of agreement signed to negotiate terms.

But initial plans to convert at least part of the building into specialist disability accommodation have been ditched after it was found the potential change of use would have triggered fire compliance requirements which would have made the redevelopment unviable.

The 40-year-old building with more than 5700sq m of net lettable area was previously the home of the region’s electricity authority and more recently infrastructure group AECOM.

But it has been mostly vacant in recent years and in need of a makeover.

Acquired by Sydney developer Thirdi, with the backing of Singaporean funds, in 2019, they have completed a $10m transformation, rebranding the property as Precinct 21.

Popular food and beverage cafe The Beet Bar took s prominent ground floor tenancy in 2021 and women’s fashion boutique Hazel mai also recently moved in.

Thirdi founder Luke Berry said they were well advanced in negotiation with a statutory state government body to lease 1500sq m on the ground floor and first level.

While plans for apartments as specialist disability accomodation proved unfeasible, Mr Berry said he was thrilled to have refurbished the building, including level 4 as a co-working space.

He said the project was inspired by Google workspaces with each floor boasting a modern, industrial style fit-out with an abundance of natural light and views across the city.

On Level 4, suites of between 100sq m and 479sq m are available, although the group says it has flexible floorplan options which can be customised to suit a business’s needs.

The building comes with 24/7 access, on-site basement parking, dual lifts and flat floor plans.

inquiries on the office space can be made to E-Property Consulting NQ.

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Sydney developer Thirdi has been given the green light for its joint venture Potts Point residential project by the Land and Environment Court.

The MUSE Potts Point development on Brougham Street will deliver 13 boutique residential one, two and three-bedroom apartments under plans submitted last year.

But the process proved to be more challenging than first imagined after the City of Sydney Council and planning committees failed to make a determination.

In March, Thirdi and development partners Toohey Miller filed an appeal in the Land and Environment Court.

While they have now been successful, Thirdi co-founder and director Luke Berry was candid about the challenges the team faced.

“From our point of view it was about respecting and integrating the heritage component of Potts Point within the development,” he told The Urban Developer.

“From the council’s point of view, due to a small but vocal community group against development in the area, it was obvious they were going to be under pressure to let our DA run a normal process of review and approval, even with our proposal being a compliant one in terms of height and scale. 

“At times you could tell the council felt torn between providing direction based on good design and how they would manage the local objections which would have severely impacted the best outcome for the site.”

As a result of the consultation and court process, the developers made revisions including a reduction in the size of the apartment block which would improve view sharing, particularly for The Butler restaurant on Victoria Street, which faced losing its city view as a result of the development. 

“While we were always going to ensure fair and reasonable view sharing for neighbouring properties, it was difficult to cut through the mis-information of the community groups just wanting to stop the development when they knew this was never going to happen,” Berry said. 

“All the design revisions were to ensure that the local community was considered, the heritage of the location was respected all without impacting the design intent of the development.

“We hope the community will see how we addressed their concerns in the final designs.”

Thirdi experienced a difficult and frustrating process with the Land and Environment Court.

“Thirdi always believes that the best and most productive process would be to try and work with the council and community to achieve a positive outcome for the development,” Berry said. 

“We are just grateful that there is a process that development like this one can follow to secure approval.

“The commissioner did an extraordinary job at balancing everyone’s opinions and concerns, and the outcome is a great result for all involved.”

Areas such as Brougham Street at Potts Point have aging and non-compliant buildings, said Berry, and these issues will have to be played out more often. 

“The reality is that areas like Potts Point…need to have a pathway through planning to ensure new housing is delivered in this area.” 

Despite the challenges, Berry is looking forward to the future of the development.

“We are excited to reveal these views to future residents when we launch MUSE in late 2023…can’t wait to start construction later this year,” Berry said.

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It has been billed as Australia’s most resilient residential market, with developers and investment piling in and the nation’s seventh biggest city welcoming a record number of citizens this year.

But Newcastle’s boom has nothing to do with its long association with coal mining. It’s all about population growth, according to Ray White’s head of commercial research, Vanessa Rader. 

“The housing affordability of the region has not gone unnoticed as well as the lifestyle benefits and access still to Sydney,” Rader says.

“Investment in infrastructure across the region has made Newcastle a stand-alone region for people to live, work and play, not a commuter town with limited prospects.”

If it maintains its current growth trajectory, Newcastle’s population is expected to tip over 200,000 by 2041. 

But it’s not all roses. 

“Demand to purchase will be slow this year (as it is across most areas) given interest rate increases which has dampened investment activity for the remainder of this year,” Rader says.

“Construction of new stock will also slow given rising finance costs and high construction costs.  

“The office market may continue to have take-up, albeit at a limited rate like most other office markets. Opportunities will stem from the services industries which may prop up retail assets given the growth in population, similarly medical, childcare will see an uptick in demand.”

Yet the Newcastle market remains robust. 

Bucking the slowdown, Urban Activation Group has netted more than $50 million in sales in just a month on Iris Capital’s $1-billion East End Village project, with Iris Capital chief executive Sam Arnaout announcing the fast-track of the final stages of the project. 

Urban Activation Group director of sales Matt George said the market was firing and most of his team were now based in the regional city. 

“The Iris Capital project is an unique offering,” George says.

“He [Arnaout] is building a landmark that he wants—the detail in these buildings is extraordinary and the architecture is really impressive. 

“Newcastle has had a huge amount of infrastructure spending over the past five years and with the rail network to Sydney the fundamentals are strong.”

The strong sales data supports the longer-term view that Newcastle and the Hunter Valley are among the strongest residential property markets in Australia at the moment. George says local-buyer interest has predominantly led the sales with downsizers from regional properties moving into town. 

Iris Capital is among a number of high-calibre developers who are reshaping the regional city from east to west, including Sydney-based developers Thirdi and WINIM, and Canberra-based Doma Group. 

Thirdi co-founder Luke Berry says investment in local infrastructure is boosting the attraction for people moving to Newcastle.

“Dairy Farmers Towers and The Merewether are sitting at close to 80 per cent sold,” Berry says.

“Being only an hour and a half up the highway from Sydney, we have had a lot of buyers purchase in Newcastle since Covid as they may only have to be at the Sydney office one or two days a week. They not only get more for their money in Newcastle, they also get the amazing lifestyle that comes with it.”

Thirdi has been developing in Newcastle for 15 years but Berry says the buyer profile has shifted significantly over that time. 

“Owner-occupiers and investors alike are craving generously sized properties and a level of finish that has previously been unavailable in the region. 

“In our Dairy Farmers Towers and Merewether Residences projects, never before has it been more important to ensure floor plates are overly generous and that all living spaces have been fully rationalised as well as the inclusion of high end finishes.

“Dairy Farmers is under construction and The Merewether is close to commencing. Newcastle is a desirable city to live and work in, the migration from Sydney due to Covid has helped the city boom and it will continue to grow.”

Another strong proponent of the future of Newcastle is WINIM joint managing director Justin Kuiters. The developer bought up the Newcastle Beach Hotel last year, nestled on the headland between Nobby’s and Newcastle beaches.

Kuiters said WINIM had long been dedicated to Newcastle. The developer recently sold a retail asset and is working with the council on repositioning the Newcastle Beach Hotel as a boutique luxury hotel and residential mixed-use development. 

“Our confidence in Newcastle as one of our preferred regional hotspots, even in the face of the Covid-19 impact, is rooted in extensive research and the fact that Newcastle has sound property and growth fundamentals,” Kuiters says.  

Kuiters says the city’s economic fortunes are tied to key industry sectors, including agriculture, mining and tourism, while the city’s CBD is experiencing strong growth in prime and subprime office markets.

The city is also undergoing a masterplanned transformation of a 50ha former industrial parcel of land at Honeysuckle into an entertainment, tourism and recreation hub at the edge of Newcastle Harbour. 

“The city has strong market and industry fundamentals and the early masterplanning undertaken over the last decade has put the city in prime position for growth and regeneration,” he says.

“Add to this, a surge in demand in regional areas during and after Covid as well as the extensive development activity on the honeysuckle foreshore has further fuelled opportunities for the city. There are now strong values being realised and more investment being targeted for the city, and WINIM has future plans to grow there.”

The developer is hoping to receive approval for its repositioning of the run-down Newcastle Beach Hotel in June, with works planned for later this year.

Doma Group has been given the green light to build its two-tower residential development on the historic former Store buildings site in Newcastle’s West End. The Store Residences will be the final stage of the $350-million transformation of the 8743sq m site at 854 Hunter Street.

The city is also in line for a $100-million investment in Port of Newcastle as a green hydrogen hub, with funding for feasibility studies, detailed designs and early works. 

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Developer Third.i has released the second stage of apartments at its Dairy Farmers Towers in Newcastle, with buyers able to use the innovative deposit-saving platform, Coposit.

The first round sold out late last year, with the project the first in the region to offer a deposit scheme in collaboration with Coposit, which allows buyers to purchase a property with a $10,000 deposit via a fee-free app and the remainder of the deposit paid off via weekly instalments.

Since its launch to market in late 2021, Dairy Farmers Towers has sold over 70 per cent of the entire project, and with demand from buyers continuing to soar amid tough market conditions, Third.i has again teamed up with Coposit to release a new series of Coposit apartments.

With only a limited number of apartments available to purchase through Coposit, Third.i’s Co-Founder Luke Berry anticipates they won’t last long as regional cities across the New South Wales coastline witness continued heightened sales activity despite a slowing market. 

“We’re excited to be partnering with the Coposit team again to release a new collection of apartments for first home buyers. We saw extraordinary demand for this type of offering and we’ve really listened to the needs of the market, particularly in an industry that’s witnessing an economic downtown,” said Berry.

“Here at Third.i, we’re creating homes for all Australians, not just building houses. This scheme offers a chance for prospective buyers to break into the property market who might not have otherwise been able to.

“Works at Dairy Farmers Towers commenced in November last year and we anticipate building works will wrap up in the first quarter of 2025. This project is the heart and soul of Newcastle’s revitalisation, and I can’t wait to see each and every buyer make their new house a home over the coming years.”

Early works kicked off late last year to bring Dairy Farmers Towers to life, which will comprise 180 one, two and three-bedroom apartments, over two towers and, in a Newcastle first, an exclusive residents’ only shared work hub, alongside other blue chip amenities including yoga studio, sprawling outdoor gardens and an elevated North facing outdoor swimming pool and sundeck.

As one of the largest providers of Specialist Disability Accommodation along the east coast of Australia, the project will also offer eight SDA apartments in partnership with iNSiTU Housing.

Third.i’s revitalisation of Newcastle continues following its debut projects WEST Newcastle, Eaton on Union and Stella on Hannell, with Dairy Farmers Towers adding to its growing $4 billion property portfolio across Australia and the UK.

As the group continues to expand internationally, Third.i is also set to deliver a range of residential and commercial offerings across NSW and London.

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The project launched in April 2022, selling out within a matter of weeks. Construction expected to be complete by January 2025.

A groundbreaking ceremony has recently been held at the $180 million Lindfield project, Balfour Place, signifying the beginning of construction with demolition works wrapping up. 

Australian developers Third.i, in conjunction with joint venture partner Phoenix Property Investors, are behind Balfour Place, which will comprise 59 apartments on top of 4,500 sqm of retail and hospitality spaces, including a brand new Coles supermarket.

The project launched in April 2022, selling out within a matter of weeks. Construction is expected to be complete by January 2025. 

It recently won the Best Mixed Use Development of The Year at the 2022 PropertyGuru Asia Property Awards.

On the award win, Luke Berry, Third.i. Co-Founder, said the development had struck a chord with the Lindfield community. 

“Balfour Place is truly at heart of what we do and a true example of how we’re building communities by listening to the needs of the market,” Berry said.

“The level of design and architecture has been carefully curated and I think it’s struck a chord with buyers who have recognised that we had larger living spaces on offer in an idyllic location with lifestyle amenities on your doorstep.

“It truly will be a legacy destination for the area and we couldn’t be more thrilled to commence construction.”

Australian builder Conquest has been appointed as the project builders, with Balfour Place adding to their project portfolio which includes the Crowne Plaza Sydney Burwood, The Greens Strathfield, La Luna Burwood and Soho Burwood.

First home buyers and young families are among those set to call Balfour Place home.

With a collection of one, two, three and four-bedroom residential apartments, residents will benefit from private courtyards and a shared rooftop garden space to be built on top of a brand new large format Coles supermarket.The Coles grocery hub will be double the size of the existing store and will include a Liqourland and heritage commercial space fronting the Pacific Highway.

Over 230 car parking spaces will also be available spanning across two levels.

The apartments were reduced from 70 to 59, after Third.i’s research suggested there was more appetite for larger apartments.

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An innovative deposit scheme is giving buyers along the East Coast of Australia the opportunity to buy off-the-plan homes sooner than if they had to save a full, lump sum deposit.

Coposit enables buyers to fast-track property ownership by allowing them to own an off-the-plan property with just a $10,000 deposit paid via a fee-free app.

The remainder of the deposit is then paid off in weekly, interest-free, instalments.

Catapult Homes is the first builder-developer in Queensland to offer house and land packages in the state using Coposit.

Catapult Homes Director of Project Sales, Tim Fowler said they would also match the Coposit $10,000 minimum deposit with a “price lock” until 2024, meaning a buyer’s sale price is locked in once they sign their contract.

This will also give buyers the chance to spend on upgrades or whitegoods to the value of $10,000.

“We’re thrilled to be working with Coposit on making our exceptional house and land offerings available to a whole new range of buyers,” Mr Fowler said.

Data from RPM Group shows housing supply in South-East Queensland remains tight and challenging, with just 17,583 lots registered in 2022, which is well down on the 10-year average of 22,517.

“With the cash rate continually rising for property buyers and reducing their borrowing capacity, in particular for house and land purchasers in South-East Queensland, the market is a challenging place,” Mr Fowler said.

“We want to give home buyers every possible advantage to overcome these rate rises.”

The house and land packages on offer through Coposit are at North Harbour, an award-winning residential development located in the fast-growing suburb of Burpengary East in the Moreton Bay region.

North Harbour is currently home to about 1400 families and the estate is situated along 9km of the picturesque Caboolture River, providing a scenic natural backdrop for residents to enjoy.

Catapult Homes has plans to extend their Coposit offer at other developments in Deception Bay, Toowoomba and Heathwood.

Coposit Chief Executive Officer Chris Ferris said, “Being able to offer Australia property buyers house and land for the first time in Queensland, with as little as $10,000 is quite the achievement”.

“We hope to offer many more house and land projects in the sunshine state as 2023 continues.”

Coposit is also popular in NSW, where first-home buyers and investors in Newcastle can use the scheme to buy an off-the-plan apartment at Dairy Farmers Towers.

This is the second time developers Third.i have released a limited number of apartments at Dairy Farmers Towers with Coposit.

Third.i Co-founder Luke Berry said he didn’t expect the apartments to last long.

“We’re excited to be partnering with the Coposit team again to release a new collection of apartments for first home buyers,” he said.

“We saw extraordinary demand for this type of offering and we’ve really listened to the needs of the market, particularly in an industry that’s witnessing an economic downtown.”

Mr Berry said the deposit scheme fit with Third.i’s ethos of not just building houses but creating homes. 

“This scheme offers a chance for prospective buyers to break into the property market who might not have otherwise been able to,” he said.

“Works at Dairy Farmers Towers commenced in November last year and we anticipate building works will wrap up in the first quarter of 2025. 

This project is the heart and soul of Newcastle’s revitalisation, and I can’t wait to see each and every buyer make their new house a home over the coming years.”

Dairy Farmers Towers will comprise 180 one, two and three-bedroom apartments across two towers, along with a residents-only shared work hub, a yoga studio, outdoor gardens, swimming pool and sundeck.

The project will also offer eight Specialist Disability Accommodation apartments in partnership with iNSiTU Housing.

“Third.i was quick to see the benefits of Coposit for their buyers at Dairy Farmers, proving they are the champions of first home buyers in the Hunter region,” Mr Ferris said.

Coposit also has off-the-plan opportunities in the ACT and Victoria.

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A ground-breaking ceremony officially kicked off construction at the $180-million Balfour Place, Lindfield’s latest luxury destination comprising 59 residential apartments situated atop a 4,500sqm urban oasis of retail and hospitality spaces, including a brand new Coles supermarket. The start of construction follows the completion of demolition works at the project site.

Developed by Third.i with joint venture partner Phoenix Property Investors, Balfour Place was launched in April 2022 and the apartments sold out in a matter of weeks, with first home buyers and young families among those set to call Balfour Place home. Australian builder Conquest has been appointed as the project builder, adding to their impressive project portfolio including the Crowne Plaza Sydney Burwood, The Greens Strathfield, La Luna Burwood and Soho Burwood.

“Balfour Place has struck a chord with the Lindfield community and the ground-breaking ceremony signals the start of bringing forth a true legacy project for the area. Now demolition works are complete, our building team is prepped and ready to bring Balfour Place to life, providing more homes that meet the needs of the market to the community,” said Third.i co-founder Luke Berry.

Balfour Place’s luxury offering will comprise one, two, three and four-bedroom residential apartments with private courtyards and a shared rooftop garden space to be built on top of the brand new large format Coles supermarket, which will be twice the size of the existing store and will include a Liqourland and heritage commercial space fronting the Pacific Highway. Over 230 car parking spaces will also be available spanning across two levels.

Construction is expected to be completed by January 2025.

Read more.

First home buyers and investors in Newcastle will find it easier to secure their slice of the property market with Australian developer Third.i releasing a second round of apartments at its Dairy Farmers Towers project under the exclusive Coposit scheme, which sold out amid buyer frenzy late last year. 

The project was the first in the region to offer a deposit scheme in collaboration with Coposit, which allows buyers to purchase a property with a $10,000 deposit via a fee-free app and the remainder of the deposit paid off via weekly instalments. 

Since its launch to market in late 2021, Dairy Farmers Towers has sold over 70% of the entire project, and with demand from buyers continuing to soar amid tough market conditions, Third.i has again teamed up with Coposit to release a new series of Coposit apartments. 

With only a limited number of apartments available to purchase through Coposit, Third.i’s Co-Founder Luke Berry anticipates they won’t last long as regional cities across the New South Wales coastline witness continued heightened sales activity despite a slowing market. 

“We’re excited to be partnering with the Coposit team again to release a new collection of apartments for first home buyers. We saw extraordinary demand for this type of offering and we’ve really listened to the needs of the market, particularly in an industry that’s witnessing an economic downtown,” said Mr Berry. 

“Here at Third.i, we’re creating homes for all Australians, not just building houses. This scheme offers a chance for prospective buyers to break into the property market who might not have otherwise been able to. 

“Works at Dairy Farmers Towers commenced in November last year and we anticipate building works will wrap up in the first quarter of 2025. This project is the heart and soul of Newcastle’s revitalisation, and I can’t wait to see each and every buyer make their new house a home over the coming years.” 

According to Chris Ferris, Founder & CEO of Coposit, “Third.i was quick to see the benefits of Coposit for their buyers at Dairy Farmers, proving they are the champions of first home buyers in the Hunter region. It’s incredible to be working together again in the next stage of the project.”

Early works kicked off late last year to bring Dairy Farmers Towers to life and bring forth the dream of owning your own home to many first-time buyers. 

Dairy Farmers Towers will bring forth 180 one, two and three-bedroom apartments, over two towers and, in a Newcastle first, an exclusive residents’ only shared work hub, alongside other blue chip amenities including yoga studio, sprawling outdoor gardens and an elevated North facing outdoor swimming pool and sundeck. 

As one of the largest providers of Specialist Disability Accommodation along the east coast of Australia, the project will also offer eight SDA apartments in partnership with iNSiTU Housing. 

Third.i’s revitalisation of Newcastle continues following its debut projects WEST Newcastle, Eaton on Union and Stella on Hannell, with Dairy Farmers Towers adding to its growing $4 billion property portfolio across Australia and the UK. 

As the group continues to expand internationally, Third.i is also set to deliver a range of residential and commercial offerings across NSW and London. Third.i is one of Australia’s leading property development and investment firms with an enviable track record in successfully delivering large-scale residential projects in Sydney and Newcastle. With a current development pipeline exceeding $4 billion, Third.i’s experience and drive to deliver architecturally inspired spaces are key reasons for their ongoing success. 

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Luke Berry’s Thirdi has won two major prizes at the Asia-Pacific’s biggest real estate awards program, but if there was a trophy for persistence, the developer might have taken that as well.

Thirdi’s $180-million shoptop development in Lindfield—designed by Rothelowman and being built on Sydney’s North Shore—was named best low-rise mixed-use development for 2022, and in the grand final was also awarded best mixed-use development in Australia.

The Property Guru Asia Property Awards were announced in Bangkok at the weekend.

And delighted as he is with the award, Berry is possibly more proud of the ground-breaking ceremony last week.

“To say we’re proud of this incredible achievement is an understatement,” Berry said.

“But I think we’re very lucky with what we’ve done with the site.”

“We bought it well, we’ve obviously sold 100 per cent of the apartments off the plan in April this year for record prices and that’s allowed us to get funding support, which is very difficult in this market.”

To be called Balfour Place, it is the fourth collaboration between the Sydney-based developer and private equity group Phoenix Property Investors.

PPI acquired the development-ready site from previous developer Perth-based Pindan Group, which went into external administration in May, 2021 owing creditors about $80 million.

Thirdi resubmitted the development application, keeping the physical size of the building, but lowered the number of apartments from 71 to 59.

“That sounds counterintuitive for a developer wanting to sell less, but we didn’t lose the floor area we just created bigger apartments because the market was telling us that more people wanted larger units,” Berry said.

The one, two, three and four-bedroom apartments will sit on top of about 4500sq m of office and retail, including a new Coles supermarket.

One-bedroom apartments sold from $845,500 but it was a four-bedroom that broke off-the-plan records for the area, selling for $5.5 million. The average price was $17,370 per square metre.

“There’s a lot of banks anxious about lending on any project,” Berry said, “if there isn’t the fundamental debt cover in place, or pre-sales in place, if the building partner doesn’t have the track record and so forth.

“And for us to be able to navigate that in this economic cycle and start the project … we’re really proud of that.”

Construction is expected to be completed in November next year.

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