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You’re excited, having just purchased a commercial property investment. But what happens from here on effectively determines just how profitable your acquisition will be.
Therefore, choose wisely when selecting your property managers to ensure they share the same aspirations as you do.
1. Maintaining full occupancy
This is what every commercial property investor wants, and it should also be the same for your property manager.
Clearly, the starting point is taking the time and effort to select solid tenants upfront — rather than simply "filling the space". Plus it's important for you to retain a good ongoing relationship with those tenants, which leads on to the next benefit.
2. Having an investor mindset
As investors, you need to think of your tenants as your partners. After all, they are the ones paying your mortgage.
Therefore, top property managers tend to act as though each property was their own. And this attitude flows through to your tradespeople as well — because when promptly paid, they will always respond quickly to any emergencies that may arise.
3. Timeliness
Naturally, this would include ensuring your tenants pay on time. And if not, having a firm but fair system in place to get things back on track.
Once your rentals are in, those cleared funds need to be immediately transferred into your bank account – and you're then alerted by email.
4. Preserving value
You need to have an ongoing preventative maintenance program in place. The reasons why are quite simple:
<ul>
<li>These costs are then known and budgetable; </li>
<li>Your tenants should cover these costs under their leases; </li>
<li>If not, the items are tax-deductible, instead of a capital cost.</li>
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By being planned in advance, it means you are able to select the best tradespeople at the best prices. Plus, your property is being inspected on a regular basis.
 
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5. Proactive advice
Top property managers will come to you well in advance of any market rental reviews (or lease expires) with appropriate recommendations. Likewise just before your insurance falls due.
They should also come to you immediately after the four-yearly council revaluations to advise you on whether or not to challenge the new assessments.
6. Statutory compliance
Unless you are involved with this every day, keeping on top of statutory changes can be a nightmare.
You need to be across them all. But probably the most vital is ensuring your property meets the various essential services requirements.
Every top property manager will already have a program for regular checking and rectification.
7. Marketability
With each acquisition, you should always be looking for ways to add value, through refurbishing or subdividing into smaller components.
This, together with your preventative maintenance program, should ensure your property is in ready-to-sell condition within 12 months of you purchasing it.
That way, you can move quickly should the need arise.
Bottom line: If you have read this far, you're already serious about property investing. And so I'd like to give you a helpful takeaway.
Whether you are about to make a new appointment, or are simply wanting to re-evaluate your existing commercial property manager, <a href="https://property-edge.com.au/after-youve-bought/property-management" target="_blank">here are the 17 probing questions you need to ask.</a>
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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The seven benefits of having the right property manager for your commercial property investment

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In various recent articles, I've tried to explain how Australia's underlying fundamentals are actually very solid.
And by most measures, our economy seems to be travelling at close to its full capacity.
However, the contradiction is that Australia's budget should now be running at a substantial surplus. And the reason it's not relates to a number of structural issues.
Even though the high dollar is causing problems for our manufacturers, unemployment is running at just 5.4% — less than 0.5 percentage points above what economists deemed to be "effective full employment". When it falls below 5%, this tends to put pressure on wages.
<img src="/images/stories/2012/10/langnov5.jpg" width="470">
Source: <a target="_blank" href="https://www.afr.com/">AFR</a>
Anyway, it is the feeble retail sales (through a continued high level of savings) that seem to have become the most visible sign of general consumer conservatism. And this is what's top of mind with most people.
However, in his column in Saturday's Age (pg. 11) Harold Mitchell touched on the record level of betting that had recently occurred at the Caufield Cup.
And he then asked “What does that mean when most parts of the country have been stumbling along in the doom and gloom for months?"
But there are other pointers as well
Mitchell also highlighted the record level of new-vehicle sales, along with the considerable increase in overseas travel.
Clearly, the GFC frightened most people. But maybe they have now become bored with saving and are prepared to spend once again — provided it doesn't cause them to increase their personal debt levels.
Rather cleverly, the car industry seems to have plugged into this consumer sentiment — by offering "0% finance, and five years to pay" on any new purchases.
That way, you are able to buy your new car without having to create another interest meter ticking over.
Bottom line: You are now seeing a growing number of signs that people are finally stirring from their long hibernation.
Moreover, last weekend's strong auction results (with clearance rates for Sydney at 68%, and 66% for Melbourne) have further confirmed an underlying strength within the residential property market.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
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Australians emerging from hibernation, which will help commercial property

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Over the past few weeks, you have read the <a href="https://www.propertyobserver.com.au/commercial/five-common-myths-about-commercial-property-investment-chris-lang/2012092456772" target="_blank">five common myths about commercial property</a>.
And also covered in some detail the <a href="https://www.propertyobserver.com.au/commercial/five-reasons-why-serious-property-investors-prefer-commercial-over-residential-chris-lang/2012100957035" target="_blank">five reasons why serious investors prefer commercial property.</a>
Therefore, it's probably time to explore two other issues, which inexperienced property investors often see as being major problems.
Because it can sometimes be difficult to find tenants, you need to significantly reduce the value of a vacant commercial property.
Because banks maintain a lower loan-to-value ratio (LVR) ratio on commercial property, that means you will need to contribute considerably more cash up front.
Let's now unpack these two issues so you can see just how easy it is for you to reshape your thinking about them and thereby gain a strategic advantage in the process.
Finding new tenants
This is probably the number-one concern for most commercial landlords.
In tough times, you need to become a little more creative in your hunt for tenants.
Once you grasp the psychology behind both these methods, you quickly realise that the vacancies are no longer something to be overly concerned about.
But more importantly: being able to snare a vacant commercial property at a discounted price is a blessing, not a problem. You now hold the solution that very few investors are aware of — even some of the pros.
Funding for commercial property
The stated "problem" of commercial property attracting a lower LVR actually contains within it, the very seed of the solution itself.
You see, the value of residential property varies little whether it is occupied or vacant.
A vacant commercial property can significantly increase in value as soon as it becomes leased.
Therefore, your focus should move from being able to borrow only 70% (instead of residentially 85%) of the property's purchase price. And you should concentrate upon borrowing 70% of the increased valuation of your commercial property with a tenant in place.
In most cases, commercial properties are valued by capitalising the net rental your tenant pays. And therefore, having the property fully leased could add around 20% to the value of your property, compared with when it was vacant.
To help you quickly grasp the full extent to which this could benefit you, here's a simple example.
<img src="/images/stories/2012/10/langoct29.png" width="470">
Bottom line: As you can now appreciate, there are definite benefits hidden within these two perceived problems, once you fully analyse and understand the inner workings.
And hopefully, you'll quickly discover some fresh opportunities opening up for you, especially in the present commercial property market.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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How to deal with the two most common problems in commercial property investment: Chris Lang

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Not that long ago, the office market as a whole was progressing well, right around <country-region>Australia</country-region>.
However, following the GFC, each local suburban market has been recovering at a different pace.
<city>Perth</city> rebounded rather dramatically, once the mining sector started to pick up again. And yet it has suddenly plateaued while mining currently takes a breather.
According to recent research by Colliers International, Sydney's suburban office market seems reasonably balanced – with its vacancy levels ranging from 5.1% in<a href="/news"> Homebush</a> to 8.7% in <a href="/news">Parramatta</a> – with the exception of <a href="/news">St Leonards</a>/<a href="/news">Crows Nest</a> (at 10.7%), and Norwest (at 15.1%).
But with continued tenant demand and a lack of supply, you should see vacancies decline sharply in 2013.
On the other hand, <city>Melbourne</city> seems to be currently enjoying a tighter range, from 4.9% in the south-east to 7.9% in the outer east. And even though some 32,000 square metres of space is under construction, about 70% of this is already spoken for.
At the moment, <city>Brisbane</city> is showing a vacancy range from 6.4% in the inner south to 11.1% in Spring Hill. Overall, the <place>Brisbane</place> suburban market sits at around an 8.5% vacancy rate, which is up from its "unbalanced" level of 2% in January 2008.
The <city>Adelaide</city> market is much smaller than other capital cities and can often slip under the radar.
Rentals here have been increasing through strong tenant demand, and a current lack of new space coming on stream. As such, vacancy levels are likely to fall below 5% during 2013.
Markets within markets
While this brief analysis provides you with a quick "helicopter view" of the suburban office markets in the various capital cities, you really need to focus more on the specific suburban regions within each city.
This will mean going back in time as well as studying the projections looking forward.
By way of example: Let's dig a little deeper within the <city>Melbourne</city> market — where from this graph, you can observe the movement in vacancy levels over the past year or so.
<img src="/images/stories/2012/10/langoct22.gif">Clearly, the south-east region has been consistently outperforming the others. And this is expected to remain the case for the foreseeable future – which would tend to make this particular region your preferred choice.
Bottom line: You can't simply rely upon the general health of a particular capital city market as the sole basis for making your decision.
It is important to peel back the layers and delve below the surface to reveal the underlying trends and ensure you have some real substance to justify your intended purchase.
And having that local knowledge will go a long way.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Investing in office property requires knowledge of the local market

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As you will quickly discover, finding suitable commercial property investments comes down to a numbers game. And interestingly, many people consider these current times to be a buyers' market.
However, as a serious investor, you will have found it difficult to identify many really top-notch properties right now. And at the moment, this is probably your number-one concern.
When I'm helping clients to acquire an investment property, half my task is involved in actually finding it. The other half relates to packaging the deal under contract, carrying out the due diligence, arranging finance and bedding down the ongoing management.
And as I said, it is purely a numbers game — and one that requires a considerable degree of persistence.
The 20:5:2:1 Rule
While you might initially look at some 20 properties, you will probably only end up shortlisting five of them at best.
From there, you'll then undertake a more thorough analysis, to decide which of those properties best meet your specific investment objectives and buying criteria.
If you're lucky, you may end up with two properties to choose from. But invariably, it is only one property that will stand out as being suitable.
Only then do you enter the second phase of the acquisition process.
Improving your choice
Therefore, how can you ensure a reasonable selection of properties to choose from?
It all comes down to having a wide network of selling agents who know that you are continually in the market for good property.
Even though these agents are clearly acting for their vendors in each transaction, what you are really seeking is "advance notice" of potential deals before they officially reach the market.
And you achieve this through building relationships with the various agents and being a proven performer over time.
When acting for clients, this has probably been my greatest asset, having this "insider knowledge" of what's going on in the market, at any given time.
Bottom line: Over the past few weeks, I have dispelled a number of the <a href="https://www.propertyobserver.com.au/commercial/five-common-myths-about-commercial-property-investment-chris-lang/2012092456772" target="_parent">more common myths.</a> And also spent some time explaining the <a href="https://www.propertyobserver.com.au/commercial/five-reasons-why-serious-property-investors-prefer-commercial-over-residential-chris-lang/2012100957035" target="_blank">five key reasons why investors prefer owning commercial property</a>.
However, your ongoing success hinges upon having a ready choice of properties. And unfortunately, you'll find the internet is often of little help in uncovering the really great deals.
Therefore, you need to invest the time and effort to create your own system for finding suitable properties. Or simply, put together a team of proven professionals charged with looking after your best interests.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Commercial property investment by the numbers

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Having been involved with both commercial and residential property over the years, it's always interesting to get some feedback directly from investors.
It is particularly interesting to hear from those who have made the transition from residential to commercial property.
Here are the reasons why commercial can be a better investment:
Reason #1: Longer leases
Quite often, residential tenancies will be on a month-by-month basis, maybe six months, sometimes for a year.
Commercial properties will tend to lease for between three and five years, and often for longer. That means you have fewer tenancy changes, and a far more predictable income stream.
Reason #2: Greater security
When residential tenants want to exit a 12-month lease early, they just need to find a suitable substitute tenant, and simply transfer the lease across to them.
This new tenant then becomes responsible for the rental for the remainder of the lease.
Commercial tenants are running a business from your property. And whenever they sell their business, they also require your approval to "assign" the lease.
But here's the difference: If the new commercial tenant defaults in paying the rental, you also have recourse to the previous tenant as well — because commercial leases are business contracts enforceable by law.
Reason #3: Commercial tenants pay outgoings
Typically, residential properties will provide you with a 5% gross rental return.
From this, you need to pay the rates and taxes, insurance, maintenance and so on — leaving you with about a 3.5% net return at the end of the year.
Depending upon what (and where) they are, commercial properties will generate a 5% to 9% rental return.
However, commercial tenants are also required to pay the various building outgoings on top of their rental — making this a true net rental return to you.
Reason #4: Commercial tenants operate a business
If the toilet stops working in an apartment, the tenant asks you to send round a plumber. But commercial tenants quickly attend to the problem themselves, so as not to disrupt their business.
Furthermore, the overall appearance of the property becomes a reflection on them.
Therefore, whether the lease requires it or not, most commercial tenants will regularly repair and repaint your property in order to maintain a good corporate image.
Reason #5: Payment certainty
Most residential properties are rented by individuals. Therefore the rent is generally paid in cash or by personal cheque. And this can often vary in its timing.
Because they are running a business, commercial tenants consider rent as simply another regular expense each month. And generally, this gets set up as an automatic bank transfer – and this can be specified as such in the lease.
Bottom line: As a residential investor, you find yourself having to deal with the vagaries of individual people.
However, as a commercial investor, you tend to enjoy a more predictable long-term relationship with your tenants based upon a proper business footing.
Doesn't that sound like a far better arrangement?
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Five reasons why serious property investors prefer commercial over residential: Chris Lang

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Here are several common misconceptions I frequently hear when people are looking to invest in commercial property.
1. Securing properties using the internet is easy – you don't need any professional help at all.
Finding a suitable property is only half the task.
The other half involves properly assessing the property — both physically and financially. And then you have to package up the deal that's best for you.
And this is where having a top consulting team (for the property, legal, finance and construction aspects) is worth its weight in gold.
2. Residential investors will find it a difficult transition.
This stems purely from a lack of knowledge and therefore, proper understanding. And that's where your consulting team comes in.
Some of my most successful clients have been those with little or no prior involvement with commercial property. However, they were clear thinkers and could quickly assess the advice being given to them.
3. You need loads of cash
Again, this is simply not true. Sure, many commercial properties may sell for millions of dollars. But you can also buy well-leased strata office suites for between $350,000 and $500,000. And this more or less the same price as you would pay for an apartment.
However, your net return for one of these smaller office suites is around 7% per annum, compared with a 3.5% net return for apartments. So I'll leave you to do the maths!
4. Commercial tenants are difficult to deal with.
Because commercial tenants are running a business from your property, they have a vested interest to keep it looking presentable.
Besides, their lease will require them to undertake (and pay for) any required maintenance. And when the time comes for them to leave, there is also a clause requiring them to "make good" beforehand.
5. It's harder and more expensive to manage commercial property.
If you choose to manage the property yourself, then you may well run into some costly problems. But that's the very reason why you would engage a competent managing agent.
And unlike residential management fees of 7%, your fees to manage commercial property will generally range between 3% to 5% of monies collected — depending upon the size of the property involved.
Bottom line: Hopefully, this short summary has helped to dispel some of the common myths surrounding commercial property.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Five common myths about commercial property investment: Chris Lang

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Will China's growth pick up again? And will it continue to support both Australia and commercial property? Well, that really depends upon who it is you're asking.
Most miners are somewhat guarded; many journalists are painting a gloomy picture; and Labor politicians seem to be arguing among themselves.
So no wonder most of us are confused.
And whenever the general community is confused, it takes what seems to be the safest route and simply does nothing.
Let's peek behind the Chinese curtain
Perhaps the best place to begin is by talking with someone like leading architect Bruce Henderson, who is currently involved in designing major projects in Dilian, China.
He is right at the coalface — dealing with those making the decisions on Chinese future economic progress.
And his explanation of where things stand is alarmingly simple.
Unlike other major economic powerhouses, China only has one political player — the Communist Party.
The administration of that party changes every 10 years, and this is due to occur towards the end of this year. But more on that later.
The 10% to 13% annual growth in China (which required our iron ore and coal) has been driven by massive construction — mainly in new housing and infrastructure.
The government controls the release of available land, by selling long-term leases to developers.
Many of the recent massive housing projects have occurred by reclaiming farmland. (In other words, a 600-unit housing project may contain 100 government "pre-sales" to those rehoused farmers.)
Most of China's recent decline in growth (still at a healthy 8% per year) has occurred through the government's cut-back in granting new leases to developers.
With housing construction at a standstill, there is no income from land sales and the work for new roads, bridges and other infrastructure cannot proceed.
This is what has impacted adversely upon our mining sector.
Understanding the "Chinese logic"
Given that China only has one ruling political party, Communist leaders are solely concerned with image preservation.
Therefore, the outgoing administration has merely "responded to global pressure" and brought China's runaway growth under control — and in the process, orchestrated a soft landing.
When the new administration assumes control later this year, it will heap praise upon the outgoing administration for its "careful and prudent management of the economy".
The, the new administration will make itself look great by stimulating the economy, once again granting land leases for developers to recommence residential construction.
Now it all starts to make sense.
Unlike what you would find in Western countries, the incoming Chinese administration will not be "bagging" the outgoing administration.
Instead, its aim is to position both as having the country's best interests at heart — thereby, allowing the Communist Party to be the overall winner.
Bottom line: Right now, China is about to overtake the US as the world's leading economy.
However, next year (with the new administration in place), China's growth will again begin to surge. And this will not only flow through to Australia's economy, but also provide a welcome boost for overall global growth as well.
Therefore, as a commercial property investor, you can expect to see some solid gains through to 2018-19.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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What China's soft landing means for Australian commercial property investors: Chris Lang

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Leaving aside things like projected cashflows, depreciation and taxation issues for moment, let's look at some of the key factors that determine whether or not the property itself will stack up.
What follows is basically a checklist of the various aspects to investigate when you start looking to purchase a commercial investment property.
And, while this is not intended to be an exhaustive list, it should give you some insight into the depth of analysis you'll need to undertake as part of your due diligence process.
1. Initial appeal
Here you are making a judgement on how the appearance of your building compares with others on offer — both visually now and whether it will quickly become outdated over time.
2. Financial aspects
You'll find there is one very useful yardstick for comparison. And that is the cost of a commercial property per square metre of its net lettable area.
In other words, you need to establish whether the cost of the building (per square metre) you are considering is greater than the cost (per square metre) of other similar buildings sold nearby. And this will quickly tell you whether your building has a more efficient layout or is simply overpriced.
Furthermore, you need to consider whether this building can maintain its current rental level or whether it would need to be upgraded in the near future.
3. Ongoing management
This is a somewhat mundane topic, but you do need to look at just how accessible the plant and equipment is. And you must determine whether enough space has been allocated for it, either on the roof or within the plant room itself.
Also, during construction, were low-maintenance materials used? And have energy-efficient measures being used with power and lighting? You will probably need to seek some professional help, to determine whether this has been properly addressed.
4. Future flexibility
Here you're looking at the actual floor layouts to make sure they are suitable for both whole-floor tenants as well as later subdivision, to accommodate multiple tenants.
Quite apart from these layout issues, how adaptable would the building be for future technological changes down the track?
5. Standard of finish and design
Depending upon the age of your building, it should be somewhat creative in its architectural and engineering design.
But just using trendy materials is of little use if they end up proving unsuitable for the purpose intended. In other words, everything needs to have a functional use.
6. Quality of services
Even though the building may be fully air-conditioned, it may lack sufficient capacity to meet the requirements of modern-day tenants.
And so, part of your due diligence needs to ensure this and other items like the lighting systems, lift services, fire protection and security services are totally adequate.
Under current legislation, all commercial buildings need to provide for disabled access. This can be quite costly to achieve if it has not already been provided.
7. On-site amenities
Will your tenants be able to gain after-hours access? And is there sufficient parking for visitors?
You may consider the use to be minor issues — but they can affect whether you achieve more (or less) than your competition.
8. Environmental issues
These relate (in part) to how well the overall use of the site was planned and how the building itself has been orientated.
But equally, you need to consider how efficiently things like your lighting, heating and cooling will operate — both from an energy consumption point of view as well as the overall running costs involved.
Bottom line: I hope this summary has given you a better insight into the due diligence process I embark upon when assisting you acquire an investment property.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Eight things commercial property investors should consider before buying: Chris Lang

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Unfortunately, you simply can't avoid experiencing some pain whenever structural changes occur within the economy.
However, these changes also provide considerable opportunities for the shrewd commercial property investor. But more on that later.
The reality
It is a huge mistake when governments rush to provide financial support to declining manufacturing industries.
Clearly, those industries will never sustain a profitable position, given Australia's relatively small population, and the consequential short production runs.
The sad reality is that some companies need to be allowed to fail (or be absorbed) so the more competitive and profitable companies can become more productive.
The unemployment truth
There has been much publicity given to recent layoffs from companies downsizing. But interestingly, unemployment levels have remained steady — and in some months, even fallen.
Sure, the mining sector is chasing more employees — to the point of having to "import" them. But not all those laid off are heading west or north. And besides, the mining boom will not continue for ever.
Looking deeper 
As such, there must be something else going on within the Australian economy that is helping to sustain growth now, and into the future.
<img src="/images/stories/2012/08/langaug27.gif">
Source: <a href="https://www.afr.com.au/" target="_blank">Australian Financial Review</a>
And the above graph provides you with the answer.
The sector-by-sector comparison shows that services alone currently contribute around 77% of Australia's GDP.
And manufacturing, mining and agriculture combined are contributing only about 23% of GDP.
Looking forward
Therefore, Australia needs to focus upon its obvious strength — providing highly educated specialist skills to local and overseas markets.
For example, our mining firms have not flourished simply because Australia has resources, which the rest of the world needs.
Much of the profit stems from the cutting-edge engineering solutions adopted by our companies — which have provided them with clear cost advantages.
Furthermore, many of the world's breakthrough technologies and techniques have been developed by Australian scientists, doctors, engineers, architects and the like.
Bottom line: This is where governments need to be investing heavily — rather than propping up failing industries with little or no competitive advantage.
Compared to many Western countries, Australia already punches well above its weight for productivity in the knowledge and service sectors.
And for commercial property investors, this surging service sector will always be needing offices, design studios and related accommodation into the foreseeable future.
That augers well for the suburban strata-office market.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Suburban strata office market looking good for commercial property investors

The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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Chris Lang

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