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Since the 1800s, there has been a procession of younger family members joining long-established family businesses.
Traditionally, it has been sons following in their fathers’ footsteps.
But things started to change during the late 1970s and early 1980s, when you saw more daughters taking up the challenge, and also joining the family firm.
Enter Generation X
Gen Xers grew up in an era of two-income families — where mums worked and crèches became the norm. Divorce rates also began to rise; and the economy floundered after the 1987 crash.
As a result, Gen X emerged as independent, resourceful and largely self-sufficient, displaying a casual disdain for authority and structured work hours.
But more importantly, Gen X heralded the shift from manufacturing to a service-based economy. And it was the first generation to grow up with computers interwoven into their lifestyle.
Having lived through tough times during the early 1990s and seen their parents made redundant from long-held jobs, Gen X had little desire to be locked into just one firm and are willing to change jobs regularly, in order to further their careers.
Therefore, for all intents and purposes, the traditional family businesses (as we knew them) were slowly dying off.
But was that to be the end?
By the turn of the century, Gen Xers held fairly senior positions and were earning some seriously good money. Plus, a growing number of them were wanting to take charge of their own destiny.
Quite often that meant groups of them leaving major companies, to set up their own businesses. And this transition is what spawned the surge in suburban strata offices over the past 15 years, all around Australia.
Clearly, Gen Xers had the drive, the computer skills and the marketing know-how. But what they quickly found lacking was their depth of business experience, ready access to finance and a well-established corporate network.
Re-enter the parents
This is where their early-retired parents (through redundancies and retrenchments during the 1990s) suddenly became invaluable – but not so much for a cash input as you might initially think.
Rather they are able to open doors to business opportunities and provide an entry to banking connections. Plus they add much-needed credibility when making sales presentations to major companies.
Bottom line: What you've been seeing is dad (or .um) given a desk from which to run his or her own consultancy business in return for providing intellectual property and projecting an "air of experience" when required.
Quite an interesting new twist on the traditional family business structure.
It is one which will continue to underpinned the demand for smaller, strata-titled offices within most commercial property markets around Australia.
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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The reorganisation of the family business will boost demand for small strata-titled offices

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Amid all the recent doom and gloom, major global banks are quietly alerting their clients to prepare for a share market surge, if Greece exits the eurozone.
That's because they believe world authorities will be flooding international markets with massive liquidity.
And given the G8 Communique from Camp David, this may well occur anyway — just to keep Greece within the fold.
Last week, Ken Henry (former treasury secretary) predicted Australia could provide global appeal to investors:
“It's quite possible on this occasion Australia will be seen as offering something of a safe haven for global capital movements.”
And this is already being evidenced by strong demand for Australian bonds — where the yields for 10-year bonds fell to a new post-war low of less than 3.2%, during last week.
But there's some hesitancy.
There still seems to be a general confusion within the economy. And unfortunately, when people are confused, they tend to do nothing. Therein lies the current dilemma for Australia.
Even though our fundamentals are in vastly better shape than 80% of the rest of the world, most consumers are "feeling less wealthy" than they were several years ago.
This is mainly due to house prices having fallen and remained stagnant, as well as the volatility within the share market. Plus there are number of structural changes working their way through the economy.
But overall, employment levels are holding up, and in some areas, business investment is expected to increase by more than 20% this year.
Furthermore, imports should grow by 12% and the terms of trade are expected to improve by about 10% over the coming 12 months. Even Japan has notched up a 4.1% growth for the first quarter, and the US housing market looks as though it may have bottomed.
The latest OECD forecast has Australia growing at 3.1% in 2012 and reaching 3.7% during next year.
Still, pundits are a fearing a slowdown in China, but you really need to keep this in perspective:
<ul>
<li>China's growth has fallen from 9% to 8.1% — which is still remarkably high;</li>
<li>Its economic growth is driven by domestic investment, not exports to Europe; and</li>
<li>Resource-heavy investment into new roads, bridges, airports, officers and apartment blocks is still growing by over 20% per annum.</li>
</ul>
This is what will continue to underpin China's demand for Australian resources.
Bottom line: Taken together, all of this is clearly creating havoc for the forecasters. However, it certainly doesn't justify the level of caution being shown by commercial property investors at present.
Right now, if you do your homework in finding a modern property with a solid tenant on a four- to six-year lease,  you'll be able to snare a well-priced commercial property investment, offering you excellent growth over the next five years.
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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The predicted slowdown in China must be kept in perspective

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It has taken almost four years, but in 2012 prime office markets in Perth, Melbourne and Adelaide should expunge the capital value lost through the GFC, according to CBRE research.
In turn, this will impact upon their suburban office markets as well.
But it might take until 2016 before Sydney, Brisbane and Canberra are able to recoup that same lost ground.
And the reasons for that?
The Perth market has enjoyed a very strong bounce from the resources sector, with very little new construction over the past three or four years.
Melbourne entered the post-GFC downturn with probably the best local economy. And it did not have the same concentration of finance sector tenants that Sydney did. Therefore it experienced the shallowest dip in capital value.
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Throughout the downturn, Adelaide seemed rather protected from any GFC fallout — keeping a stable balance between demand and supply.
Unfortunately, the Sydney market had the greatest exposure to the finance sector — which has kept its vacancy rate disturbingly high, despite only modest new construction levels.
Canberra already had a significantly high vacancy rate when the GFC hit. And the government cutbacks will certainly not help to improve that situation.
While Brisbane also has its own mining sector, it has not created sufficient demand to reduce the high vacancy rate following the GFC downturn. And clearly the devastating and continued flooding has adversely affected the local economy as well.
Bottom line: Fortunately, there has been only a modest amount of new construction in the past four years. And this will help to keep vacancy rates across Australia hovering around the long-term averages, for most capital cities.
As a commercial property investor, you should be viewing the Perth recovery as too rapid. And the Brisbane recovery is too slow. It's not wise to invest into volatility, or stagnation.
Both the Adelaide and Canberra markets are relatively small and affected more by local issues.
Therefore, with some guidance, you should be focusing upon the Melbourne and Sydney markets going forward.
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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It’s time for commercial property investors to focus on Melbourne and Sydney office markets

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There is no doubt you can certainly accelerate your overall return from commercial property by gearing up with a loan.
Even so, you should first make sure that you can say "yes" to each of the following questions.
<ul>
<li>Am I approaching this purchase over a five- to seven-year time frame?</li>
<li>Is borrowing the only way for me to reach my investment objectives?</li>
<li>Do I have other income, outside of what the property will generate?</li>
<li>Would I be able to cover the mortgage payments, if interest rates were to rise 3%?</li>
<li>Will my equity represent at least 30% of the overall value?</li>
<li>Does the intended property make sense, without relying upon depreciation benefits?</li>
</ul>
Understanding the proper time frame
While you may choose (or need) to sell your commercial property in three or four years’ time, you ought to initially approach each purchase as a five- to seven-year exercise.
And that's mainly because your greatest costs (as with any investment) will always be at the beginning and the end of every transaction.
Therefore, it is always wise to spread those costs over at least five years — rather than look to turn properties over quickly.
Adequate coverage
Assuming you have no choice but to borrow, your financier will (and you should too) be concerned about having sufficient coverage for your mortgage payments.
For most commercial properties with 70% gearing, your tenant should cover your normal loan payments at current interest levels.
But what if the tenant were to leave at the end of the lease? Or interest rates were to suddenly rise?
The second issue can be resolved by simply fixing your interest rate, to provide you with greater comfort. Whereas tenant continuity is probably best addressed through ensuring your property is professionally managed.
That way, there will be a good ongoing relationship established with the tenant. And there is every likelihood of the lease being extended.
Bottom line: Commercial property is capable of providing you with some quite extraordinary returns.
But like any business venture, you need to plan things out and have a clear set of investment objectives and buying criteria.
With those in place, sensible borrowing can then greatly enhance the overall results you achieve.
 
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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Borrowing money to invest in commercial property must be done sensibly

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If you have invested in the share market, you would most likely be familiar with the so-called "investment clock", which attempts to show how the economic cycle influences equities.
In essence, an over-heated economy is followed by rising interest rates and falling share prices. Then, as the economy declines interest rates start to fall and share prices rise again.
Some analysts have tried to devise a similar "clock" for commercial property. But unfortunately, the results have generally not been useful.
Commercial property has a number of sectors, which do not necessarily move in unison. For example, industrial property prices may be sagging while retail prices rise.
There are also regional differences as well. Prices might be hot in Sydney and lukewarm in Melbourne or Brisbane, or vice-versa.
Nevertheless, using a somewhat broad-brush approach, it is possible to place property within the investment cycle as follows:
<ul>
<li>The economy begins to slow</li>
<li>Direct property prices stop rising, and may decline</li>
<li>The authorities inject liquidity into the economy</li>
<li>The stock market and listed property trusts rise</li>
<li>The economy starts to recover</li>
<li>Direct property prices start to rise</li>
<li>Inflation may also rise</li>
<li>Interest rates rise</li>
<li>The stock market and listed property trusts fall</li>
</ul>
To help give you a clearer picture for commercial property, here are five key phases based on economic and supply-demand factors.
Phase #1:
This is the bottom of the cycle, when the market is generally in a condition of oversupply — due to both a weak economy and too much new construction, from when the economy was still strong.
Vacancy rates may be high and rents falling significantly. Therefore, any new construction ceases, while demand slowly starts growing again, and the existing oversupply is gradually absorbed.
Phase #2:
Demand for new space continues to grow. But with little new construction, rents rise — sometimes quite sharply. This leads to developers once again to initiate construction of new buildings, until at some point, you regain a rough balance between supply and demand.
Phase #3:
Demand continues to rise but supply is now growing faster, and rental growth may begin to slow down.
Phase #4:
The market is approaching a point of oversupply, due to over-building, with the situation perhaps aggravated by a weakening economy.
Phase #5:
Vacancy rates climb rapidly, causing rents and prices to begin falling. This leads to a general decline in investor confidence. And so, you re-enter Phase #1 once again.
Historically, offices have spanned around 18 years from "peak to peak". The industrial and retail cycles have tended to be about nine and six years respectively.
Bottom line: Obviously, the key is in knowing where you are in any particular cycle. Unusual influences (like the mining boom) can cause disparities for commercial property, between the various capital cities.
However, for most cities, you are now in Phase #2, with about five to six years to run before the current cycle for each sector peaks.
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" title="Chris Lang's blog" href="https://his-best.biz/">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 time the commercial property market right

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Commercial properties are mainly a longer-term investment, bought for their regular high yields — as well as for good capital growth over time.
Even so, an investor with some knowledge and experience can easily find properties able to be improved and then on-sold for a quick capital gain.
Typically, this would involve improving the income flow from the property, and also the security of that income — thus boosting the property's overall appeal and value.
So, what are your options?
There are various ways you can do this. But the simplest strategy would be to buy a run-down property and renovate it.
Alternatively, you might also be able to find a property with a lease that does not reflect current rental. Renegotiating that lease would lead to a higher rent, boosting the value of the property. Longer leases and better-quality tenants will always make a property worth more.
You may also come across properties that have been poorly managed. For example, a block of shops might have several vacancies, or tenants who attract little business. Making the tenancy mix more appealing tends to attract better tenants and brings in higher rents.
Simply spotting opportunities in improving neighbourhoods, such as inner-city suburbs enjoying a growing number of upmarket residents, is another good short-term strategy.
With experience, you might look to buy vacant buildings, "trick them up" and then lease them out. Using a little imagination, you can easily discover ways to completely change the use of a property — turning a warehouse into a restaurant, for example, would boost its value.
Bottom line: Timing the market is another viable short-term strategy. As with the share market, commercial property can go through periods when values may not change much, followed by periods of sharp appreciation.
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://his-best.biz/" title="Chris Lang's blog" 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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Short-term strategies for commercial property investment

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As an in commercial property, you need to fully appreciate where your profits actually come from.
In most cases, the key lies with your tenants, who provide you a steady stream of income.
So finding reliable tenants is crucial, which means understanding their needs and providing them with a suitable premises.
Therefore, it is essential that you continually anticipate exactly what your tenants are expecting.
And because good tenants are a vital part of the profit equation, you need to look for ways to inexpensively improve the value of your property by adapting it — with a simple upgrade, or perhaps a change of use — in order to attract better tenants going forward.
In any event, your net income from commercial property will generally be two to three times that for a residential property.
Lease terms are equally important
You'll find a good lease usually provides for rental increases at least in line with inflation. It may well also include conditions that limit rental falls, in times of an economic downturn.
The lease will usually include provision for regular rental reviews based upon market conditions.
The length of the lease may well vary — with smaller premises often attracting shorter lease periods, but probably at least three years.
For larger office buildings, a typical rent period might be for five to 10 years, with an option to renew for a further period. For large or purpose-built Industrial properties, the lease period may be 10 years — with an option to renew for a further 10 years.
The other main source of your profit is capital growth.
This may not always be as high as from residential property — because the supply and demand equation is different. Nonetheless, good opportunities are certainly present themselves — if you know what you're looking for.
Bottom line: Just as certain suburbs can go in and out of fashion with home owners, so commercial properties in a particular area can enjoy very strong demand.
For shops, that would be in a high-growth area. Whereas improved transportation facilities tend to boost the value of offices and warehouses — because of the easier access.
Next week, will run through some short-term investment strategies you may care to explore.
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" title="Chris Lang's blog" href="https://his-best.biz/">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 profit from commercial property investment

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For some time now, the RBA has been as assuring us of the flow-on benefits soon to reach the non-mining states of Victoria and New South Wales.
However, these benefits may not be very easy to recognise. Let's attempt to make things a little clearer.
The mining boom has been keeping the Australian dollar high for some time now, due to the record levels reached by our terms of trade.
Accordingly, the prices you and I pay for a whole host of manufactured goods have barely altered from what we paid for them 10 years ago. And in some cases, they have fallen.
Yet household incomes have actually grown by more than 60% over the same period.
Therefore, stable prices for many items, together with increased disposable income, has meant those of us living in Sydney and Melbourne now have more to spend upon services and entertainment.
And that then probably helps to explain the extraordinary explosion in restaurants and cafes over the last few years.
Are there other signs of growth?
The latest ANZ jobs survey showed advertisements rose by 1% during March — and have risen by some 12% for the year.
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If next month's figures show a further increase in job ads, this will provide clear evidence of a return of confidence, within the economy.
Bottom line: <a href="https://www.propertyobserver.com.au/commercial/next-year-will-be-good-for-commercial-property-investment/2011112152466" target="_blank">Another recent article </a>touched on the current high level of accumulated household savings.
These are poised ready to re-enter the economy, as soon as this growing confidence is finally confirmed.
And if the RBA trims the cash rate (as is widely predicted to occur in May), be prepared for a sudden surge in investment activity — which will inevitably include commercial property.
 
 
 
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How the mining boom is translating into more cafes in Melbourne and Sydney

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In simple terms, your depreciation falls under two separate (but related) categories:
<ul>
<li>Plant and equipment items (Division 40)</li>
<li>Capital works allowance (Division 43)</li>
</ul>
And not everyone is in a position to acquire a stand-alone property.
More often than not, you'll be looking to purchase a "strata-title" office or warehouse, involving an owners’ corporation and some common-area property.
As such, you may not be aware of the full extent of what you are entitled to, by way of your depreciation claims.
However, once you are aware of them, you can significantly enhance the overall return on your investment.
Plant and equipment items
Apart from what may be included inside your unit, you are able to claim your pro-rata share of the common-area items as well. This includes things like the lifts, lighting, fire protection, security system, air-conditioning, gym equipment (including any pool and spa equipment) and so on.
Capital works allowance
Again, quite apart from the structural components of your own unit, you are entitled to also claim your share of the common-area capital items as well.
These will include the driveways, car park areas, foyers, stairwells, barbecue areas, common area communities (like the gym, etc) and fixed landscaping.
Depending upon the year of construction, this allowance would be spread over either 25 or 40 years.
In any event, the proportion of your claim is based upon your "unit entitlement" as specified on the strata plan itself.
Your first step is to engage a land surveyor to thoroughly inspect the common area items. From there, a detailed schedule of your entitlements is drawn up for your accountant to prepare the year-end claim for your depreciation.
Bottom line: Clearly, you need to seek professional advice to ensure you are claiming your full entitlement — and thereby, leaving nothing on the table.
However, there is still one vital step you need to take at the time you acquire each new property. And this relates to knowing how to correctly structure of the contract of sale in order to maximise your depreciation claim for commercial property.
But that's a discussion for another day.
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://his-best.biz/" title="Chris Lang's blog" 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 depreciation commercial property investors can claim

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Last week I discussed <a href="https://www.propertyobserver.com.au/commercial/fourteen-questions-to-ask-yourself-before-you-begin-a-negotiation-in-commercial-property/2012032654018" target="_blank">14 questions you need to ask yourself before beginning any negotiation</a>. Here are a final six. Are you…
1. Remaining professional?
You simply can't afford to lose your temper and still retain respect, from the other party.
People can be insulting, and it is all too easy to respond aggressively. But sometimes they're just doing that to test you, or your patience. So you may simply need to suggest adjourning the negotiations to give them a chance to regain their composure.
If it is a genuine outburst on their part, they can cool down. And if it's merely a ploy, they're going to look rather stupid.
2. Aware of the benefits and consequences?
You need to try and understand the benefits and consequences for each party in the negotiation.
Only then can you properly decide when (and how) to make any concessions, also when (and how) to stand firm, with your own needs and requests.
3. Employing the power of silence?
Work on becoming comfortable with silence. Most negotiators feel the need to jump in with some comment whenever there is an awkward pause in proceedings.
But whenever the answer to your question will actually commit the other party, say absolutely nothing more. Otherwise, all you'll get is further conversation.
4. Avoiding on-the-spot decisions?
Never commit on a major point unless you are quite sure of your answer and you're on solid ground.
No matter what the pressure, all you need simply say is: "I may need to sleep on that, I'll get back to you tomorrow".
5. Considering the telephone?
By choice, negotiations should commence face-to-face.
However as things progress, you'll sometimes find more progress can be made by phone — because it takes out all the emotion and allows you to simply focus on the rational items, rather than any personal issues.
6. Documenting the final agreement?
Sadly, too many people leave the negotiating table with only a handshake. A short summary (by way of "heads of agreement", a confirming letter or an email) is all you need to tie down the deal.
You need to have some form of documentation at the end, if this is a serious negotiation.
What you might say is: "Let's make a few notes on the points we have agreed for each of our files and just initial it."
This is vital. It provides a basis for the contract to be prepared. And when the contract arrives, you can confidently say: "That's not what was agreed."
If you both have the same set of notes, it's easy to verify that the contract has been drawn incorrectly.
Otherwise, you'll quickly discover how recollections can often change — between reaching agreement and the formal contract emerging. As a result, you are forced to restart the negotiation again.
Bottom line: I hope this has helped you to gain a complete "helicopter view" of how each component of a negotiation ties in with all the others.
And with the framework at your fingertips, you are now better equipped to tackle your next negotiation.
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://his-best.biz/" title="Chris Lang's blog" 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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Six final questions to ask yourself before commercial property negotiations

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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[smartcode_project_cta:default project_id=112661]

Chris Lang

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