Traditional Victorian-era terraces are famed for their theatrical façades adorned with intricate lacework and plenty of character. However, one historic home on Gipps St in East Melbourne has the ultimate dramatic street cred; it was designed by William Pitts, the architect behind Melbourne’s iconic Princess Theatre.

Pitts designed multiple Melbourne beauties, including St Kilda Town Hall, Queens Bridge, the Olderfleet building and the Rialto on Collins St, even the Wellington Opera House in New Zealand.

Crafted and built around 1870, prior to the completion of the Princess Theatre in 1886, this end-of-row terrace gained a new lease on life in 2019 when acclaimed architect Sue Carr AM was tasked with bringing it gracefully into the 21st Century via a four-year labour of love transformation.

Today, Kay & Burton agents Monique Depierre and Arabella Houghton are seeking between $10.5 and $11 million for 123 Gipps St via an expressions of interest campaign. The home was last exchanged for $4 million in 2012, before the extensive renovation.

In a pocket of East Melbourne where heritage overlays protect the character of the streetscape, the Victorian terrace was carefully reimagined to balance period elegance with contemporary comfort. Behind its striking white façade, Carr and her team created a series of layered spaces where period detail and modern function co-exist.

Carr has described her approach to the Gipps St property as “a journey of reduction.” By stripping back superfluous elements, to reveal the grandeur of Pitts’ original structure.

“The idea was to bring order and appropriateness of scale, respect for heritage, and outright contemporaneity to a Victorian terrace,” Carr has said when describing the home.

Central to that vision was light. The home is arranged across three zones: the restored terrace, a private courtyard garden, and a two-storey rear addition.

In the original front rooms, there are decorative cornices, ceiling roses and marble fireplaces. These classic old-world spaces with a modern makeover include a versatile music room, a library and a grand dining area.

Stepping through to the next generation of the floor plan, the heart of the home features a contemporary kitchen with a stone island bench and a hidden butler’s pantry fully-equipped with Gaggenau appliances.

The casual everyday family zone, complete with a cosy gas pebble fireplace, opens out to a bluestone-paved north-facing courtyard, where the current owners have created a calming retreat filled with bonsai trees and manicured landscaping.

Up on the first floor, all four bedrooms feature ample natural light and have built-in wardrobes. Beyond a statement pivot door, the main bedroom opens to a full-width private balcony overlooking leafy East Melbourne and has a walk-through wardrobe to an ensuite with a freestanding sculptural bath. One more bedroom has its own ensuite, while two more share a full family-friendly bathroom.

More than just a Melbourne terrace with an extension out the back, Carr’s transformation also includes a new zinc-clad rear addition that plays a dual role; it is a secure two-car garage with laneway access, that is also home to a self-contained studio above. Fitted out with its own kitchenette and bathroom, the independent space is an ideal guest suite, a home office or au pair retreat.

The modernised home boasts a long list of added extras, including honed limestone floors with underfloor hydronic heating and zoned climate control, as well as full security and custom lighting.

Close to green spaces, such as Fitzroy Gardens, Powlett Reserve and Darling Square, the East Melbourne house is within walking distance to the MCG, and city restaurants.

Listed with Monique Depierre and Arabella Houghton of Kay & Burton, 123 Gipps St, East Melbourne, is on the market with a price guide of $10.5 million to $11 million. The expressions of interest is closing on October 28 at 12 pm.

The spring property market is shaping up as the most active in recent memory, according to property experts Two Red Shoes.

Mortgage brokers Rebecca Jarrett-Dalton and Brett Sutton point to a potent mix of pent-up buyer demand, robust seller confidence and the First Home Guarantee Scheme as catalysts for a sustained run.

“We’re seeing an unprecedented level of activity, with high auction numbers already a clear indicator of the market’s trajectory,” said Sutton. “Last week, Sydney saw its second-highest number of auctions for the year. This kind of volume, even before the new First Home Guarantee Scheme (FHGS) changes take effect, signals a powerful market run.”

Rebecca Jarrett-Dalton added a note of caution. “While inquiries are at an all-time high, the big question is whether we will have enough stock to meet this demand. The market is incredibly hot, and this could lead to a highly competitive environment for buyers, with many homes selling for hundreds of thousands above their reserve.”

“With listings not keeping pace with buyer demand, buyers are needing to compromise faster and bid harder.”

Two Red Shoes identifies several spring trends. The First Home Guarantee Scheme is expected to unlock a wave of first-time buyers by enabling eligible purchasers to enter with deposits as low as 5 per cent. The firm notes this supports entry and reduces rent leakage, but it is a demand-side fix that risks pushing prices higher around the relevant caps.

Buyer behaviour is shifting toward flexibility. With competition intense, purchasers are prioritising what they can afford over ideal suburb or land size. Two Red Shoes expects the common first-home target price to rise to between $1 and $1.2 million over the next six months.

Affordable corridors are drawing attention. The team highlights Hawkesbury, Claremont Meadows and growth areas such as Austral, with Glenbrook in the Lower Blue Mountains posting standout results. Preliminary Sydney auction clearance rates are holding above 70 per cent despite increased listings, underscoring the depth of demand.

The heat is not without friction. Reports of gazumping have risen, including instances where contract statements were withheld while agents continued to receive offers, reflecting the pressure on buyers in fast-moving campaigns.

Rates are steady, yet some banks are quietly trimming variable and fixed products. Many borrowers are maintaining higher repayments to accelerate principal reduction. “We’re also seeing a strong trend in rent-vesting, where owner-occupiers are investing in a property with the eventual goal of moving into it,” said Jarrett-Dalton.

“This is a smart strategy for safeguarding one’s future in this competitive market, where all signs point to an exceptionally busy and action-packed season.”

Two Red Shoes expects momentum to carry through the holiday period and into the new year, with competition remaining elevated while stock lags demand.

North Sydney’s apartment market notched another milestone with the launch of The Walden, where 55 per cent of the Stage One release exchanged contracts totalling $103 million within three hours of sales opening. The project is by ALAND, a gold star iCIRT rated developer and builder.

Positioned at 177 Walker Street on the eastern edge of the CBD, The Walden fronts uninterrupted harbour views from the Sydney Harbour Bridge to Sydney Heads.

Limited local housing supply, strong demand from affluent downsizers and a growing population are cited as drivers of both interest and pricing in the suburb.

Data referenced in the release notes North Sydney apartment prices rose nearly 10 per cent in the 12 months to August 2025, compared with an average year to date gain of 0.7 per cent across wider Sydney. The precinct continues to benefit from public and private investment as it evolves into an 18 hour destination.

“It’s clear that North Sydney’s changing rapidly, and property buyers are excited both by what’s on offer in the suburb now, as well as what’s yet to come,” ALAND Founder Andrew Hrsto said.

“Against this backdrop, The Walden is set to become a benchmark for luxury living in North Sydney, and it’s perfectly poised for buyers to capitalise on the continued growth and transformation in the local area. With its unrivalled amenities, refined design, and rare balance of sophistication and community connection, The Walden delivers a lifestyle unlike anything else on the market.”

Planned resident facilities include a fully equipped gym, wellness and treatment room, spa, wine cellar, residents’ lounge, private dining room, pool, dedicated work from home and meeting spaces, plus concierge services.

“Apartment sales in North Sydney have remained robust throughout 2025, and today’s opening sales at The Walden reflect strong buyer confidence in the area’s ongoing revitalisation,” said Ben Stewart, Partner at SRM Residential, which is overseeing sales.

He added that purchasers are responding to apartment scale and amenity, along with metro connectivity that places Barangaroo three minutes away and Martin Place five minutes away.

“The Walden has the best views in this part of the North Shore which can never be built out, with 70% of apartments enjoying front row views of the harbour.”

Stewart also pointed to confidence in delivery and quality. “The design and sizing of apartments at The Walden is a level above the majority of other projects on the market, and we’re seeing buyers prioritise well designed apartments that offer both lifestyle appeal and long term investment potential.

“ALAND’s 23 years of delivery success, backed its Gold Star iCIRT rating and Latent Defect Insurance (LDI) have been embraced by this market.”

Construction is scheduled to commence in early 2026, with completion targeted for 2028.

Melbourne’s residential market appears to be on a comeback path, with a pricing recovery expected to take shape from late 2025 and continue through 2026 as borrowing costs ease and demand holds up.

New research by the MaxCap Group, commercial real estate fund manager, argues that lower mortgage rates will be the key catalyst for the next upswing, with stabilising sentiment and gradually improving activity reinforcing the turn.

The city has underperformed since 2022. While Brisbane, Perth and Adelaide posted strong gains, Melbourne recorded a modest correction.

One effect has been a lift in relative affordability. Local prices now sit below a wide set of comparable markets, including Brisbane, the Gold Coast, the Sunshine Coast, Canberra and Adelaide, and could trail Perth by year end.

That discount is expected to endure even as prices rise, reflecting differences in tax settings, investor participation and recent growth momentum elsewhere.

Several cyclical and structural forces are in play. Higher interest rates and softer sentiment have been a clear headwind over the past two years.

A heavier state tax take as Victoria pursues budget repair has also weighed on investor activity. Property-related imposts such as land transfer duty and land tax are taking a larger share of state revenues in 2025–26, and that has cooled appetite at the margin.

Set against those drags are supportive fundamentals. Population growth remains robust, interstate outflows are easing, and the construction pipeline is constrained.

The research estimates an 8,000-dwelling shortfall in Victoria in 2025, with the shortage most acute in the city of Melbourne. Rental markets remain tight, with a residential vacancy rate of 1.8 per cent in August pointing to ongoing pressure on rents and a continued incentive to build.

At a sub-market level, undersupply is most evident across the inner and middle rings and through the south-east corridor. There are early signs of price stabilisation, with more than half of the most-traded suburbs shifting from annual declines to annual growth.

The initial gains are concentrated in more affordable fringe areas, where price points and borrowing capacity are best aligned as rates begin to fall.

Looking ahead, model-based projections indicate prices should lift as mortgage rates decline, incomes rise and building activity gradually recovers. The upgrade cycle is expected to be measured rather than explosive.

Without near-term reform to property taxes, the recovery is likely to be more subdued than previous Melbourne upswings, and the city’s price discount to other capitals is expected to persist through this cycle.

The research also contrasts Melbourne’s broader post-pandemic performance with other markets, noting a deeper peak-to-trough decline in CBD office values than Sydney.

Even so, the residential turnaround is framed as primarily a function of the interest rate cycle rather than policy shifts. Risks to the outlook include a slower-than-expected pace of rate cuts, construction cost pressures that delay supply, and any renewed deterioration in investor sentiment.

For buyers, the combination of improved affordability, tightening rental conditions and the prospect of lower rates suggests a narrowing window before momentum rebuilds. For sellers, the message is that late 2025 into 2026 should deliver firmer conditions, especially in well-located, appropriately priced stock across the inner and middle rings where undersupply is most pronounced.

As local legend has it, retired Colonel William Farrell Commanding Officer of the first infantry regiment, stood on the balcony of his new Randwick residence back in 1906 and watched his soldiers parade by, saluting his honour.

Today, more than a century later, Swan Isle itself deserves a salute as it remains one of Sydney’s most meticulously maintained heritage addresses.

The 1349sq m estate in Randwick made an appearance on the market in early 2024, at the time asking $20m – a figure that would have eclipsed the suburb price record of $14.35 million set that same year.

Ray White Double Bay’s Kate Smith, and principal Elliott Placks, have brought the palatial seven-bedroom home back to market with a new campaign and an amended guide of $14 million.

The $6 million price correction may seem significant, but the eastern suburbs’ prestige property scene evidently sets its own pace.

Just last week the period residential estate Iona in Darlinghurst – once owned by Hollywood elite Baz Luhrman and Catherine Martin – sold for top dollar after an apparent $13 million “discount”.

That heritage estate had been marketed unsuccessfully in 2024 with a $40 million guide, was then slashed to $27 million at the start of this month, but sold in just 12 days for $37.5 million.

Since Swan Isle last sold in 2002 for $2.02 million, the two-storey home at 87 – 89 Darley Rd has been lovingly restored by the current owners and retired hoteliers, Robert and Mary Lou Richards.

The Richards were the publicans of The Strand, in Darlinghurst in 1992 and the Rocksia in Rockdale between 2012 and 2020.

After Colonel Farrell and his wife Frances raised five children at the historic home, the property was later used by St Jude’s Anglican Church for monthly services.

By the mid-20th century it became a private hotel and was then returned to private hands in 1960.

Inside, the stately residence expertly balances period charm and contemporary convenience with formal and casual living rooms featuring high ornate ceilings, chandeliers, polished timber floors and intricate lead light windows.

There are also original fireplaces and bespoke joinery that has been crafted to suit the home’s Victorian past, while modern upgrades include a modern kitchen with stone surfaces, Ilve and Miele dishwasher and a butler’s pantry.

All seven bedrooms are spread across both levels, plus two of the four bathrooms have elegant freestanding tubs and dual vanities.

In addition to multiple entertainment spaces downstairs, the upper floor houses a study, media room, billiards room and several balconies capturing panoramic views of Centennial Parklands and the city skyline.

Outside, the expansive grounds are home to manicured gardens befitting the romantic era, and more 21st century inclusions such as a barbecue area, a heated swimming pool, and a self-contained pool house that doubles as a studio.

The block has dual street access with Huddart Lane and there is an automated four-car garage with ample storage.

Swan Isle is close to Royal Randwick Racecourse, Allianz Stadium, Moore Park Golf Course, the Entertainment Quarter and the SCG.

Swan Isle at 87-89 Darley Rd, Randwick is listed with Kate Smith and Elliott Placks of Ray White Double Bay. It is listed via private treaty with a $14 million price guide.

It wasn’t too long ago that Noosa was seen as a relaxed holiday town, more famous for its surf breaks and weekenders than record-breaking prestige property.

But much like much of Queensland, COVID lit a torch under the market, and in Noosa it was the prestige sector that surged the hardest.

Records tumbled, including one-bedroom apartments on Hastings Street, the suburb’s only true beachfront strip, changing hands for nearly $6 million. That’s a price point not seen anywhere else in Australia, not even Bondi Beach.

While some regional markets have since cooled as workers trudged back to the office, Australia’s wealthy have continued to pour into Noosa.

Their growing fortunes, from corporate payouts to generational wealth, have fuelled the demand. Think former Virgin Australia CEO Jayne Hrdlicka, who just received a $50 million payout from her former employer.

Just before Christmas last year she spent $17 million on a 1970s Noosa home, which she plans to knockdown and replace with a three-level luxury residence by Shaun Lockyer Architects.

The regional price record was set in 2021 when Peter Tighe, non-executive chairman of AuKing Mining and part-owner of champion mare Winx, paid $34 million for Webb House in Sunshine Beach.

Initially, speculation swirled that billionaire Gina Rinehart was the mystery buyer. Sunshine Beach still holds the crown for Noosa’s priciest sale, but the bulk of big-ticket transactions are now spread between absolute beachfront in Noosa Heads and the suburb’s sought-after waterways.

So far in 2025, there have been 42 sales above $5 million across the region. That’s broadly in line with the last three years, with the exception of 2021, when more than 90 properties over $5 million changed hands between January and September alone.

Higher interest rates aren’t applicable to this cohort of buyers. 

This year Mark Fraser, the Queensland architect who founded beach shade giant CoolCabanas, paid $18 million on an empty X sqm block of land with approved plans for a new luxury home.

Brendan Pickering, the managing director of Pickerings Auto Group, spent $16.5 million to add to his collection of Noosa waterfront trophy homes, while the lesser known, Melbourne-based millionaires Robert and Abigail Polites, emerged as buyers of a $17.6 million home on Witta Circle, widely regarded as Noosa’s premier riverfront street. 

The prestige market has been further energised with the listing of one of Noosa’s most striking waterfront homes, and it could set a new benchmark.

Reed & Co. agents Adrian Reed and Donna Taylor have just launched Casa Luca to market, a newly built Wyuna Drive home that recently won the 2025 Master Builders Regional Award.

Translating to “House of Light,” the home has been crafted by renowned designer Paul Clout, whose name is synonymous with Noosa’s most celebrated residences. Interiors are by Hong Henwood, incorporating Italian marble, Portuguese stone, Egyptian limestone, and hand-blown Soktas glass pendants.

Every detail has been carefully curated, and all the custom furnishings are included in the sale.

The residence offers a 20-metre river frontage with expansive glass panes framing uninterrupted water views. Inside, curved walls and soaring ceilings deliver dramatic impact, while a marble-clad galley kitchen with a 3.5-metre island bench forms the heart of the home.

It features a Gaggenau cooktop and ovens, dual integrated Fisher & Paykel fridges, and Miele dishwashers, a space designed to entertain as much as cook.

Spread across more than 500 sqm of internal living, the four king-sized bedrooms include a master retreat with a private riverfront terrace, walk-in robe, and ensuite clad in limestone and Italian marble.

Multiple lounge areas are anchored by Jetmaster and gas fireplaces, with terraces flowing to the pool, spa, and private jetty. A custom wine cellar and bar sit alongside the dining space, while an alfresco pavilion with an automated roof, BeefEater barbecue, plumbed gas fire pit, floating daybed, and magnesium pool complete the resort-style setting.

Competing for best trophy home listing this summer is another Paul Clout special, this one on Gympie Terrace in Noosaville. The home, dubbed One W, is listed with Century 21 Conolly Hay Group Noosa Heads agent Rachel Sellman, who is entertaining offers around the $20 million mark.

The highlight of the four-bedroom, three-level home is the rooftop terrace, channeling a chic Mediterranean beach club with a private heated pool and spa, floating daybeds, custom dining and lounging areas with a gas fireplace, a built-in barbecue, a bar with beer taps, and an adjustable pergola. Sharing this level is a fitness studio with a full gym, infrared sauna, and a steam shower.

Sydney’s CBD is heading into a period of historically low new office supply, with just three major premium developments over 25,000 square metres due by 2029, according to new Knight Frank research.

Of the 163,000 square metres set to be delivered, 65 per cent is already pre-committed, leaving only one per cent of total CBD stock available for lease until 2027. No new projects are currently slated for 2028-29.

Knight Frank Associate Director, Research & Consulting, Marco Mascitelli, said premium-grade space continued to outperform the wider market.

“Since 2018 there has been an average pre-practical completion commitment rate of 87% across all new developments, which have totalled 481,000 across 13 schemes,” Mascitelli said.

“Over the past 18 months, 170,000 square metres of newly developed premium grade office space has been delivered…all have been successfully leased, achieving an average commitment rate of 90%.”

National Head of Leasing Andrea Roberts said the market was tightening rapidly.

“Tenants continue to prioritise centrally located assets with market-leading amenity, and in time this will expose a supply shortfall at the top end of market which will drive rapid rental growth,” she said.

“As a result of the looming supply shortfall, occupiers seeking premium space within the 2026 to 2028 window need to act swiftly to secure their preferred option.”

Knight Frank forecasts average rental growth of around five per cent a year for Sydney’s premium assets, with incentive levels expected to fall below those offered across the wider market.

An ideal property for serious tree changers seeking a lucrative landing, Pepper Tree Creek estate just outside of Robertson in NSW ticks just about every box for house hunters in the millionaire’s playground of the Southern Highlands.

On more than 30ha of rolling green pastures, with a private lake and plenty of period charm, the expansive property features a converted dairy reinvented as a holiday cottage, fertile paddocks, and close to 2ha of fairytale manicured gardens.

On the market with a price guide of $14.5m to $15.5m, Pepper Tree Creek is listed with Michael Coombs and Sarah Burke of Atlas Southern Highlands. According to title records, the property last changed hands in 2019, before its latest upgrade, including a pool, when it sold for $6.7m.

Dating back to 1862, the original primary residence is a heritage stone cottage that has been sympathetically expanded and restored using stone quarried on site.

The vast floor plan has multiple entertaining zones, including formal areas such as a dining room with skylit cathedral ceilings and a piano room. These stately rooms flow through to the Wolgan Valley room – a closed in veranda with a pizza oven and French doors opening to spacious deck.

There are also everyday casual living areas from the contemporary country kitchen. The culinary space is home to a central island bench, a farmhouse sink, a grand gas cooker, a combined scullery and laundry.

An additional mud room connects the main floor plan to the four-car garage via a large breezeway, offering plenty of hidden storage for gum boots and dog toys.

Up on the first floor, the main retreat houses a separate bedroom with a fireplace, a luxury bath ensuite, a walk-in wardrobe, a sitting area with a study and another fireplace.

Back on the main level, there are three more bedrooms, a whole family bathroom, and a reading room with yet another fireplace.

For entertaining in the great outdoors, surrounded by a picturesque backdrop, there is a spacious covered terrace with a barbecue area, a fire pit, a vine-covered veranda, a mosaic pool, plus a poolside cabana.

Guest accommodation at the Old Dairy consists of a self-contained one-bedroom cottage with a full kitchen, bathroom and full-width veranda.

While the historic homestead and cottage paint a pretty picture, the impressive landscaping sets the estate apart from its neighbours.

Beyond the meticulously sculptured gardens, complete with topiary hedges, terraced sandstone vegetable gardens and a traditional greenhouse, there are 4ha of landscaped parklands. The grounds feature a remnant rainforest, local artists’ sculptures, a 1.2ha spring-fed lake with its own island and wooden bridge, as well as an elaborate chicken hutch affectionately known as Cluckingham Palace.

Although Pepper Tree Creek is connected to town water, the estate’s gardens are irrigated via timer systems tapping into the local spring water. All the paddocks have gravity-fed and spring-fed troughs for sustainable and efficient water management.

Other sustainability elements include substantial solar power infrastructure, offering the possibility for off-grid living.

Pepper Tree Creek is listed via private treaty with a price guide of $14.5 million to $15.5 million through Atlas Southern Highlands agents Michael Coombs and Sarah Burke. 

Australia’s fledgling branded residences sector is poised for growth, according to McGrath Estate Agents and Knight Frank’s newly launched Residence Report.

The global branded residences market has surged from 169 schemes in 2011 to 611 today, with forecasts of more than 1,000 by 2030. Locally, the concept gained prominence with Crown Residences at One Barangaroo in Sydney.

Adam Ross, Associate Director of Prestige and International Sales at McGrath Estate Agents, said developers and buyers alike were showing strong interest.

“We have seen strong interest among developers to deliver branded schemes as well as huge demand from buyers off the back of the Crown Residences sales at One Barangaroo in Sydney,” he said.

Ross noted that design, identity and services are key.

“While an emphasis remains on providing a range of services and amenities to serve wealthy but time-poor individuals, developers are investing in globally renowned architects, place makers and interior designers to create an identity for their project, community and the surrounding environment,” he said.

Michelle Ciesielski, Head of Residential Research at McGrath Estate Agents, said demand is building.

“There’s growing demand in Australia, but nothing comparable to One Barangaroo has been greenlit yet. For developers, it’s that ideal combination of timing, cost and the right site,” she said.

Ciesielski added that the sector is expanding beyond hotels.

“Today, hotel serviceability only forms part of the branded residence concept. As this market has evolved, developers have widened their scope with brand collaboration with increasingly more being delivered with non-hotel brands.”

Brisbane, Melbourne and the Gold Coast are emerging hotspots. Projects such as Seafarers by Riverlee in Melbourne and the Mondrian Residences on the Gold Coast highlight the sector’s potential.

“The sites are there, the desire and demand are there; the only uncertainty lies with finding builders with space on the books to deliver. The race is on,” Ross said, pointing to activity in South-East Queensland ahead of the 2032 Brisbane Olympics.

“Today’s luxury is tomorrow’s expectation.”

It was one of Anders Sörman-Nilsson’s throwaway lines – but the kind that sticks. The Swedish-Australian futurist wasn’t talking about marble benchtops or rooftop pools. He meant robots in the home, AI personal assistants and cities so climate-resilient they could add decades to your life.

For Sörman-Nilsson, science fiction is no longer something you watch. It’s the world you live in, and if you’re in property, you’d better be designing for it now.

Take transport. In Los Angeles recently, he rode in a Waymo self-driving car and “never felt safer”. No human driver, no small talk, no risk of road rage. Just seamless, sensor-driven efficiency. Or healthcare. His GP now uses an AI medical scribe to complete reports and referrals, saving hours of paperwork. For patients, it means more time with the doctor and medical instructions translated into plain English.

These examples aren’t novelties. They’re signals. “AI is taking the robot out of the human,” he told the audience. 

“It’s letting us do less of the menial and the mundane, and more of the meaningful and the human.”

Speaking to more than 100 property and investment leaders at the inaugural Kanebridge Quarterly Property Summit in Sydney, Sörman-Nilsson set out a future that is as exhilarating as it is confronting. 

The night opened with a data-rich address from expert economist Dr Andrew Wilson, who set the economic scene for the year ahead. 

His forecast: a robust housing market through 2025, underpinned by falling interest rates, inflation easing back to the RBA’s target, and a still-strong labour market. 

From there, the conversation shifted from the short-term economic outlook to the long-term forces reshaping the industry, as futurist Sörman-Nilsson took the stage.

Over the course of an hour, Sörman-Nilsson unpacked the three significant forces reshaping real estate: AI, demographics and design, and why ignoring them could be fatal for investors, developers and cities alike.

One of his sharpest warnings was about climate change and the emergence of “climate oases” – the select cities and regions that will remain liveable and attractive as others become too hot, flood-prone or costly to protect. 

“In Australia, Hobart, Launceston, and Canberra are among the most climate-resilient,” he said. 

“People are already moving there for cooler temperatures and security. That’s not a trend you want to ignore if you’re thinking about where value will hold.”

Demographics, too, are shifting in ways the property market can’t afford to overlook. By 2035, Sörman-Nilsson predicts that 40 per cent of households could be single-person households. Fewer children, more solo living and longer lifespans will require housing models that prioritise community, flexibility and wellness over sheer size.

 “If you want to live in Sydney in the future,” he quipped, “you might never know your grandkids because they’ll have to move somewhere they can actually afford.”

The implications for design are profound. He points to “Blue Zone” principles – the habits and environments linked to long, healthy lives – as a template for next-generation developments. 

Think walkable neighbourhoods, green spaces, social connection and accessible services. 

“Singapore has become the first urban Blue Zone by design,” he said. “If they can do in 20 years what took Okinawa hundreds, there’s no excuse for our cities not to aim higher.”

For all the provocation, there was consensus in the room. Panellist Darren Younger, CEO of Assetora, said the opportunity for property to integrate technology at the foundational level has never been greater. 

“Technology isn’t just an add-on anymore. It’s becoming the foundation for how we design, transact and manage property,” he said. “From fractional ownership to AI-driven maintenance systems, the innovations are here;  we just need to deploy them.”

Want more? Read the full story in the spring issue of Kanebridge Quarterly, here.