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Every six months, the Property Council of Australia (PCA) conducts a nationwide survey on the state of the office market around the country.
The accompanying graph will give you a quick snapshot of where things currently stand.
However, even the commercial property market has been subject to the influences of the much talked about "two-speed economy".
Across the country, around 290,000 square metres of space was occupied over the six months to June. That means there has now been an above-average absorption for the last three years.
<img src="/images/stories/2012/08/langaug20.jpg">
Source: <a target="_blank" href="https://www.afr.com/">Australian Financial Review</a>
And that has caused the national vacancy rate to fall slightly to 7.8%.
According to PCA chief Peter Verwer, although demand is 50% above the 20-year average, three-quarters of the CBD absorption took place in Perth and Brisbane.
You only need to look at the graph showing rental movements to see the effect the mining sector is having upon tenant demand.
Traditionally, Sydney has always had the highest prime net rentals of all capital cities.
But this changed in 2007, as a result of the mining boom.
What you should observe the lack of underlying depth and fragile nature of the Perth and Brisbane markets following the effects of the GFC, from 2008 to 2011. And only now is Perth beginning to head back up at a cracking pace.
You'll also notice that Sydney's rentals only fell marginally over the same period, due to the rather large proportion of financial sector tenants it houses.
Rentals in Melbourne and Adelaide continued to increase slowly — despite the impact of the GFC.
The state of play
Over the first half of this year, Sydney has seen an improvement in tenant demand, together with significant office space being withdrawn from the market.
Despite the relatively low vacancy rate in Melbourne, tenants seem a little cautious about business conditions. And some are preferring short-term lease extensions to long-term commitments.
The vacancy rate in Perth actually rose over the past six months, with new space coming onto the market. But that will immediately be absorbed due to strong tenant demand.
Over 80,000 square metres of space has been added to the Brisbane market, which also pushed up its vacancy rate; and a further 50,000 square metres is due for completion next year. Even so, tenant demand remains strong.
An uncertain future for the Olympic Dam project and new space coming on stream will help to keep the Adelaide market somewhat subdued.
Meanwhile, Canberra will continue to suffer from federal government cutbacks and the consequent reduction in its public service space requirements.
Bottom line: You be the judge!
The Perth and Brisbane office markets will provide you with one hell of a ride — so long as you know exactly when to get off.
Whereas, Sydney and Melbourne will simply give you predictable growth — with less excitement, but also far less anxiety.
Right now, commercial property is offering something for every investor.
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Which commercial property market you should invest in right now

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There has been much debate recently about the health of the retail sector.
Needing to constantly have everything "on sale" has certainly shrunk everyone's margins. But overall, sales volumes have languished.
Yet, maybe there is some light at the end of the tunnel. The ABS just reported that retail sales increased by 1% during June, following a 0.8% rise in May.
And department store sales jumped by 3.4% during June — the largest increase in more than a year.
However, as you can see from the graph, the most recent surges in retail activity have also followed directly after generous government handouts.
<img src="/images/stories/2012/08/langaug141.jpg">
Source: <a target="_blank" href="https://www.afr.com/">Australian Financial Review</a>
The golden era
Clearly, retail's golden era is somewhere in the past. In fact, the BIS Shrapnel recently forecast retail sales growth of 2.9% per annum over the next five years. And you only need to compare that with around 5% per annum before the GFC.
Add this to the strong incursion being made by online retailing, and you start to realise the retail sector (as a whole) is looking somewhat fragile.
In fact, Moody's rating agency has recently indicated that the credit standing on major Australian shopping centre owners is a risk.
Moody's considers that low vacancy rates and fixed rental increases above the CPI are simply not sustainable given the sudden growth in online retailing.
Online influence
However, it's not just purchasing over the internet that is causing retailers a problem.
Have you noticed how customers conduct instant in-store price checks using their iPhones or iPads? Retailers are now often being forced to further shave already thin margins on the spot to make a sale.
That simply means retailers need to respond more vigourously to this online threat.
Some recent research by Deloitte confirms retailers must change — and quickly — to deliver a seamless online service for their customers.
Bottom line: Historically, retail landlords have been prepared to accept income yields as low as 4% to 5% because they were accompanied by 8% to 9% per annum capital growth. But this is no longer the case.
Leases with fixed rental increases have been growing faster than the CPI, which only creates illusory growth — because those rentals will simply fall back at the next market review.
Therefore, most commercial property owners are now viewing their retail investments as an "income play". And yields have been firming accordingly.
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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With retail capital growth looking fragile, retail yields are firming

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The Labor government is crowing about its latest statistical achievements — low inflation, low unemployment, strong growth and booming investment.
So, why aren't Australians feeling an overwhelming sense of warmth and wellbeing? Probably, as my earlier articles have explained, it all comes down to an overall lack of confidence.
Most people are still expecting the RBA to further reduce interest rates. However, barring a European meltdown, that would seem to be rather unlikely in the foreseeable future.
You only need to study these graphs to understand the RBA's hesitancy — because clearly, the average measures of inflation currently sit at the bottom of the target band adopted by the Reserve Bank.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/langaug7.gif"><img src="/images/stories/2012/08/langaug7thumb.gif"></a>
Closer scrutiny is required
However, when you look more carefully at the composite parts, you can better understand the make up the overall CPI figure itself.
As a result of the high Australian dollar, the prices for tradable items (mostly imported) contribute -2% per annum to the total figure.
However, the prices for non-tradable items (being domestic goods and services) are currently growing at 3.6% per annum. And the problem is that these represent about 60% of the CPI's final figure.
These domestic items include essential goods and services, which people need and use on a daily basis.
Things like electricity, education, healthcare and rent — where electricity alone has risen by 10.7% over the past year.
Therefore, the low "official" measures of inflation mask the fact that everyday consumers continue to experience living costs, which are rising on a monthly basis.
And this is what is fuelling the present uncertainty within the Australian community.
However, the real irony here is that, if overseas events were to cause the Australian dollar to fall below parity (with the US dollar), this would provide a welcome boost for all our exporters — not merely the mining sector.
And in turn, this would help restore some balance to our present two-speed economy.
Bottom line: These are certainly strange times. And yes, local investors do seem to be confused by all the mixed signals.
However, this doesn't seem to be deterring private overseas buyers, who see Australian commercial property as extremely well-placed for growth over the next five years. And in particular, Melbourne — as Dr Frank Gelber (of BIS Shrapnel) confirmed last week at the REIV's Annual Forecast Luncheon.
All these investors require is a well-located property with a solid tenant on a good lease, and their decision to buy quickly follows.
 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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Local commercial property investors confused by mixed economic signals

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While everyone seems to agree that the residential market is currently moving sideways, investors often find it difficult to gauge how direct investment into commercial property is really travelling.
Perhaps the best gauge is to take a look at what the sharemarket thinks about A-REITs (Australian Real Estate Investment Trusts).
Generally, these yields tend to operate at about 1.5% to 2% below direct investment into property. Nonetheless, they can be a great indicator of where the present trend is heading.
With debt now under control, the A-REITs have put in a solid performance over the 12 months to June this year.
As you can see from the charts, this trend has been consistently upwards when compared to:
<ul>
<li>10-year bonds</li>
<li>The RBA cash rate</li>
<li>Most other types of equities</li>
</ul>
In fact, since January 2011, A-REITs have returned 11.2% in total, as opposed to equities at -9.3%.
 
Looking forward
With consolidations, the number of A-REITs has dropped from 24 to 19. And investors also have the comfort of knowing they are buying at a discount to current asset backing.
Those A-REITs focusing primarily upon office and industrial property would appear to be performing the best. That is consistent with what we're currently seeing with direct investment into commercial property.
The bottom line
As you're probably aware, the sharemarket tends to price in forward trends, generally giving you a six-month lead-time on what is likely to occur.
As such, you now have yet another source confirming the underlying strength of the commercial property market. This should give you some added comfort to secure a property now, in your own right.
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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Why commercial property is trending up

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Gerry Harvey appeared to sum it up fairly well in a recent interview:
"It was unusual to have such a poor sentiment at a time when Australia's economy was relatively strong compared to America and some countries in Europe."
Harvey feels Australia has an economy regarded as strong by outsiders. And yet there is a total lack of confidence, and businesses are therefore suffering.
Overseas investors are actively targeting Australian commercial property — accounting for around half of all sales of over $30 million. However, local investors remain hesitant.
This is purely a confidence thing — something my articles have been attempting to explain, over the past few months.
Experts are purely blaming the overseas turmoil. And it's true, countries affected by the financial crisis have not yet adjusted their economies to the long-term structural shift taking place — mistaking it as simply a fall-off in demand.
Fortunately, Australia is able to sell its mining output to China — creating funds now, to allow for structural adjustment over time.
And so, as tough as this may sound, propping up selected industries through subsidies is simply bad economics.
Instead, the government should be fostering a flexible environment within which businesses and workers can be encouraged to adapt.
Surely China is in trouble?
During the second quarter of this year China's growth was probably slower than at any time in the past three years.
It has been well reported that China's growth rate has cooled. But that doesn't mean a hard landing — because the current expected growth rate (of 8% per annum) is scarcely stagnation.
With inflation seemingly now under control, China has already begun cranking up approvals for roads, airports, steel mills and social housing.
All of these will require what Australia's mining sector produces.
Therefore, Australia's problem will not be a fall-off in global demand. Rather, it will be the impact of greater competition from other countries supplying commodities.
But this is an unlikely to occur until 2016, when the world economy should have fully returned to an expansionary phase.
How should commercial property investors respond?
Because of the general uncertainty, quality commercial properties are starting to look cheap. As an investor, the secret is to have your lease expiry (and therefore a rental review) occur in 2016-17.
That will then provide you with solid income during the current period of confusion. And also allow you the opportunity to reap considerable capital growth, when you review the rental to market.
Bottom line: Confusion generally means inaction.
For commercial property, that translates into there being no meaningful new development in the short term — certainly not of a speculative nature.
However, against this lack of supply, you will still have a growing tenant demand, which will result in increased rentals, and lower capitalisation rates.
In other words, the precise scenario most investors would hope for.
Therefore, recognise it for what it is and position yourself now, before everyone else finally twigs to what was actually going on.
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 target="_blank" 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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A lack of supply means increased tenant demand and yields for commercial property investors

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The first half of 2012 has been rather dismal for retailers. Figures coming out of the ABS tend to confirm anecdotal evidence that retailing is doing it tough.
And none more so than department stores, fashion and electronics. Food and entertainment remain the only bright spots.
Major players like Myer, DJs, Harvey Norman and JB Hi-Fi have all recorded a drop in profit.
Even with the two interest rate cuts and recent government handouts, the expected bounce in sales is yet to materialise for traditional retailers.
And they have lowered their expectations going forward — with much concern being voiced about the impact of online retailing.
Online sales
While shoppers seem to be shunning "bricks-and-mortar" stores, many consumers are still spending, to the point where online sales have leapt 20% over the past few years.
<img src="/images/stories/2012/07/langjuly9.jpg">
But you need to keep this figure in perspective: Online retailing is only worth about 5% (or $11 billion) of traditional retail turnover.
Nonetheless, it's a growing trend that clearly has mainstream retailing concerned.
According to the NAB, 75% of this online spending is going to Australian businesses. And yet, tens of thousands of businesses (64% according to MYOB) have no web presence.
So, there is plenty of scope for traditional retailers to restructure, and join the party.
Need for change
Gone are the consumer boom years, where household debt peaked at 150% of disposable income. And clearly, there is now a need for retailers to adjust.
In fact, household savings have been growing since the early 2000s. But the GFC, plus a fall in value of their superannuation and property wealth, have left people feeling poorer.
Hence, their sudden urge to save even more, where households currently have 25.9% of their financial assets in cash — well above the long-term average of 19.5%.
Bottom line: As soon as things stabilise globally and they begin "feeling wealthy" once again, consumers will resume spending and respond with new-found vigour — much like most creatures do after emerging from a long hibernation.
It is during this "catch-up" period that you can expect retail property to regain its position as a sought-after investment once more. And this renaissance should commence towards the end of next year.
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" target="_blank">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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Retail renaissance to begin at the end of 2013

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Can commercial property investors continue to rely on the government? Yes, but probably less than previously — due to both the state and the federal austerity measures currently being implemented.
Some of the recently announced public service layoffs will remove the "automatic" component of government take-up from the CBD office demand equation. But that's not altogether a bad thing.
It simply means that more major development activity going forward will be by pre-commitment, rather than wishful speculation.
This is already being evidenced in Brisbane, where Campbell Newman is planning to relocate his public service requirements to the waterfront. And likewise in Perth, the state government is also looking to decant some of its CBD office needs to the suburbs.
Right around Australia, all levels of government are now seriously reviewing their accommodation requirements and how effectively they use their current office space.
Who occupies what?
Click to enlarge
<a href="/images/stories/2012/07/langjuly3.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/07/langjuly3thumb.jpg"></a>
According to a recent report by Colliers, government occupies about 25% of all CBD space across Australia. And as you can readily see from the graphic above, Canberra and Brisbane clearly exceed the level.
Melbourne has a fairly balanced "wheel" and also one of the lowest exposures.
Last year, Canberra's overall office vacancy level fell from 13% to 10.8% — which is nothing to really brag about. And the planned staff cut-backs will not help improve that situation.
Slow to change
While governments of all levels may have announced plans to rationalise the CBD office needs, they are renowned for moving slowly, with their implementation. And historically, whole floors have often simply remained vacant following previous staff cuts.
Furthermore, government tendencies have struggled to meet the private-sector workspace ratio of 10 to 12 square metres per person. Instead, most fall within the 15 to 20 square metre range, but some state government tenancies actually exceed that.
Bottom line: While government cut-backs may initially cause some concern for some CBD office landlords, the vacant space should be readily absorbed as the economy expands.
However, the real beneficiary will be suburban office markets — as government tenants seek modern space and a lower rent profile.
Therefore, as an owner of suburban office space you will begin to see a new large player entering the tenancy market. This will help to drive rents up — while still providing government with a lower overall rental bill.
As such, this provides you with a real opportunity underpinned by solid demand.
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" target="_blank">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 government cutbacks mean for commercial property investors

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Prices may be rather attractive at the moment, but the days of quick and easy financing are over.
Furthermore, the tight credit market is making it tough for some investors to secure loans.
Nonetheless, with a little creativity and preparation, you can often bring otherwise-doubtful funding options within your reach.
And if you want to take advantage of some great opportunities at the moment, here are a few tips to improve your chances of success.
Increase your initial equity
Let's start with something simple. By contributing 30% to 35% upfront for your new purchase, you will secure your loan and probably obtain a better deal on your interest rate.
But if you don't have the immediate cash to do that, you consider a line of credit on your home or no investment property to bridge the gap.
Steer clear of the big four banks
If your initial equity isn't quite as big as it should be, you might consider a neighbourhood bank for financing rather than one of the big banks.
You'll find them to be a little more flexible; plus, they may also know your local market better and prefer investing locally.
Engaging a good mortgage broker is another good option — because they have access to a wide range of loan products. But make sure you deal with someone who knows how to find investor money.
Seek help from the vendor with financing
Right now, some vendors may be prepared to leave some money in the deal for a few years.
But you need a game plan — to "sell" the vendors on financing,
And you need to sell the vendor on you as well.
You need to paint a confident picture so they don't fill in the blanks with their worst fears.
Think outside the box
You may be looking to buy a vacant property, where you know a tenant can be easily found. But a few things need to be done to it first.
Most investors would seek to "screw the best price" out of the vendors, to help offset some of the upgrade costs involved.
That is your first big mistake!
The better outcome would be to have the vendors agree to a six-month settlement but grant you access to renovate after 30 days.
That way, you can complete the upgrade work and have the property fully let before settlement.
But more importantly, you will be borrowing on a higher-valued property — which should cover your upgrade costs. If you settle early, those costs will come out of your own pocket.
Bottom line: In the current market creativity rules.
Never go into a negotiation fixated on price. With just one item to resolve, there is always a winner and a loser.
Instead, it's often far more productive to let the vendors name the price, but you name the terms.
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" target="_blank">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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With a little creativity, you can secure funding for commercial property investment

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According to a recent report by Property Watch, overseas investors appear to be strongly buying office buildings within Docklands and the CBD of Melbourne.
Currently, these office purchases account for around 36% of all very major deals being transacted — and they seem to be driven by Melbourne having the second lowest vacancy rate for this kind of property, after Perth.
Apparently, investors are not being put off by the federal government's recent decision to double withholding taxes for international landlords.
It seems the reason being given for this surge in buyer activity is Australia's economic strength — low inflation, declining interest rates, solid population growth and relatively low unemployment.
And these underlying fundamentals are what obviously appeal to overseas investors, as they consider the foreseeable uncertainties within the US and Europe.
<img src="/images/stories/2012/06/langjune18.gif">
As a result, investors are being drawn to the expected rental growth due to a clear lack of new construction, currently in the pipeline.
This became apparent during 2011, when just over 41,000 square metres of new office space came onto the market, which was well below the annual 135,000 square metres 10-year average.
Bottom line: Sometimes it takes a few "outsiders" to cause local investors to realise that things are not nearly as bad, as what some pundits would have them believe.
But here's the thing — by the time the "overly cautious" have come to realise the truth of where the market currently sits, many of those attractively priced commercial property opportunities will already been snapped up, by savvy offshore buyers.
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" target="_blank">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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Overseas investors showing strong interest in Melbourne office stock, undeterred by double withholding tax

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Not everyone was expecting the RBA to further ease the cash rate when its board met last week.
Some felt the board would simply "keep its power dry", and just wait to see how the outcome of the June 17 election in Greece unfolded.
Some economists like Saul Eslake of Merrill Lynch felt that the $2.5 billion of cash payments by way of government compensation for the carbon tax would serve as "enough stimulus" for now.
But maybe, such thinking took too simplistic a view of things.
Despite the RBA's fears of an underlying growth in wages, monthly inflation figures have sunk to zero. Furthermore, the corporate sector confidence had also slumped.
However, the tipping point was probably the trading losses suffered on Monday this week on the stock exchange — wiping off around $26 billion in value.
Maintaining your perspective
While international conditions may have softened, local share investors nonetheless appear to have overreacted with their interpretation of the likely effect for Australia. And what the RBA is desperately trying to do is interrupt the cycle of negative consumer confidence.
As you will recall, one of my recent articles explored in some detail Australia's underlying growth prospects, low unemployment, healthy financial system and solid investment pipeline.
And this would appear to now be validated by the solid GDP figures released last week, confirming the state of our economy.
Bottom line: The RBA's decision last Tuesday should give commercial property investors even more encouragement.
The shrewd money already seems to be viewing the current turn of events as purely a severe dampening of local confidence.
And once the switch clicks across to "positive", the anticipated surge in consumer activity will reward those who have based their plans on the underlying fundamentals , rather than unwarranted fear.
Therefore, as a commercial property investor, you need to fully satisfy yourself that everything is as you are being led to believe.
If not, you're missing out on genuine opportunities by "running with the herd". And last week's decision by the RBA should serve as a wake-up call for all commercial property investors — because rates will now be on hold for the foreseeable future.
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 target="_blank" 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 the RBA cash rate cut will affect commercial property

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Joel Robinson

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

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Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

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	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
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	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
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	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
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</ul>

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Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

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The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

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Chris Lang

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