<html><body>
Australia remains the third most popular country for international students, as the overseas student population continues to increase in both universities and other education sectors, says a recent Savills report.
Australia has a strong reliance on international students from a number of South East Asian countries, it says.
China (28%), India (11%), Republic of Korea (4%), Thailand (4%) and Vietnam (4%) are the top five countries of origin for international students studying in Australia, according to The Australian Student Accommodation Market Report by Savills.
The latest demographic information available indicates that international student growth is stronger as evidenced by enrolments in higher education courses with student visas growing by 11% from 2015 to 2016. 
<a href="https://www.propertyobserver.com.au/images/2017/09/29/StudentNationalities.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/29/StudentNationalities.png" alt="">
In 2016, the strongest growth in international student numbers in Australia came from Brazil (20%), Malaysia (18%), Nepal (16%), Hong Kong (10%) and Colombia (22%).
<a href="https://www.propertyobserver.com.au/images/2017/09/29/StudentNationalities.png">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/29/StudenEnrolments.png" alt="">
According to the report, universities across Australia also continue to be significant participants within the market, with 71,645 beds of Purpose Built Student Accommodation (PBSA) in the eight Australian capital cities. The existing supply in each city is less than 11% of the full-time student population with the exception of Canberra (28%).
Over the first three quarters of 2017, consistent with market activity throughout 2016, the key focus for the major developers in this sector has been the continued acquisition of sites and the construction and delivery of new Purpose Built Student Accommodation (PBSA).
“In Sydney, the University of Sydney, UNSW and Macquarie University are currently active in improving / extending existing residential portfolios,” said Conal Newland, director of Student Accommodation at Savills Australia.
“The University of Melbourne has been active with a number of projects in the last 12 months as have Deakin and Monash Universities. In Brisbane, the University of Queensland and QUT have also considered new projects.”
Newland added that there were only two institutional off-campus transactions in Australia in the first three quarters of 2017, though it was consistent with transaction volumes over the last five years. 
In contrast, the more mature markets in the United States and the UK have been at near record volumes, he said.
Net initial yields in Australia have remained relatively static over the last 12 months, primarily due to the limited number of transactions.
Australia’s student population continues to grow at a steady rate, with total student enrolments increasing by 2.7% from 2014 to 2015, a rise of 36,903 students. 
International student numbers increased by just less than 4.5% in 2015. All of this growth is attributed to full-time international students which increased by almost 5.5%. Part-time international student numbers fell by 0.8% in 2015.
Among the states, New South Wales, Victoria and Queensland showed the greatest number of student enrolments. Victoria achieving the largest increase in enrolment numbers year on year, with an increase of 4.4% compared to 2014. Of all the states, Tasmania saw the largest increase of 9.9% growth in 2015 with multi-state higher education providers increasing by 6.7%.
“The number of international students enrolled in Higher Education courses and utilising study visas in Australia has grown by 10.9% from 2015 to 2016, a marginally higher increase than the year previous” he said.
There were 554,179 international students studying on a student visa in Australia in 2016 which represents an 11.3% increase over 2015 figures (498,155 student visas). The top five nationalities are China, India, Republic of Korea, Thailand and Vietnam. China is the largest international student country of origin which contributed over 27% of the total number of international students in Australia in 2016. The country with the highest percentage of growth is Columbia with growth rate of 22.4% from 2015 to 2016.
Sydney is biggest drawcard for investment into the student accommodation sector. The significant supply and demand imbalance, world class universities and status as a global city are contributing factors, according to the Savills report. The total development pipeline in Sydney has increased from 3,665 beds in 2016 to 5,435 beds in 2017.
In Melbourne, the pipeline for delivery of new student accommodation has increased significantly in the last 12 months. 
Savills 2016 research indicated a total pipeline of 9,651 beds, which has increased to 16,295 beds in 2017. This has been driven by the availability of development sites and the University of Melbourne's 2020 strategy to increase the pipeline of student accommodation bedrooms to 6,000.
After a period of two years when the PBSA development pipeline in Brisbane increased significantly, the activity has slowed in the first three quarters of 2017. There was a minor acceleration towards 30 June 2017, the date that Brisbane City Council’s infrastructure levy reductions ceased, and these projects must commence construction by the end of October 2017 to receive the concession. Analysis indicates that the total combined PBSA pipeline has increased from 8,930 beds in 2016 to 10,682 in 2017.
The development pipeline in Adelaide has grown to 2,159 in 2017 from 1,480 in 2016. In 2018, three projects are programmed for delivery including developments by Blue Sky, Kyren Group and Urbanest. In 2019 a further 380 beds are programmed for delivery.
There has been significant interest in the Perth student accommodation market in the last 12 months. The total development pipeline has increased to 3,621 beds from 2,000 in early 2016. This includes projects being promoted by Stirling Capital and Cedar Pacific. The development pipeline also incorporates the first stage of the Curtin University procurement – a mixed use project incorporating student accommodation.
It is clear when comparing both the existing supply and development pipeline across the major Australian capital cities, with the comparative cities in the UK that in general Australia has a much lower base of supply.
However, according to Rachel Coates, associate director of Student Accommodation at Savills Australia, one critical difference between the Australian and UK market is the propensity of domestic students in the UK to move away from home for university education – and therefore demanding PBSA.
“Australian domestic students are much more likely to live at their parent’s home while studying at university. Cultural drivers and specialisation of course offerings from UK universities has led to much higher rates of students leaving home and travelling to attend university studies,” she said.
It is interesting to note that the record level of UK transactions contributed to global student accommodation investment of over USD $14 billion in 2015. The US market also achieved record levels of USD $5.5 billion for the year and Western Europe USD $2 billion, again a record.
“The US and Western Europe continued to break records in 2016, with the UK having a slower year transaction wise, before being projected to reach close to 2015 levels in 2017. Sales activity in the first quarter of 2017 has been somewhat more subdued with a total of USD $1.95 billion of transactions,” Coates said.
“Analysis of recent transactional activity within the UK demonstrates how the Australian transaction market is still at an early stage, both in terms of the volume of stock that has been traded analysed in terms of the number of beds, and the total value of transactions. There is a substantial amount of trading in the UK forecast for the fourth quarter of 2017, indicating that transaction volumes could total close to £5 billion for the year.”
Coates went on to say that political reform of the Australian Higher Education Sector remains on the agenda, as continued government funding of the Australian university sector seems less likely, and competition between universities is set to increase.
“Savills expect that the provision of high quality purpose built accommodation will become an important consideration for a number of Australian universities. The levels of development activity among universities is already increasing,” she said.
“Sydney will continue to be the most attractive, but the most difficult market to access. Despite a rapid rise in the number of projects over the last 12 months, Melbourne continues to attract a number of new pipeline projects.” 
Debt funding for new development led projects has affected a number of property asset classes through the first three quarters of 2017, including student accommodation. Accessing debt finance for new projects is anticipated to remain challenging.
Record numbers of investors are looking to access the Australian student accommodation market. However, whether development led or investment led, opportunities are at this stage limited.
“Looking to the start of 2018, the delivery of new pipeline accommodation, particularly in Melbourne and Brisbane is going to be closely watched by market participants and observers in terms of the occupancy uptake and stabilisation of new assets, particularly towards the top end of the rental price range. And accessing debt finance for new projects is anticipated to remain challenging.
“Savills anticipate at least one new developer entering the market either late 2017 or early 2018. We also see an opportunity for more competition in the independent third party management of student accommodation” said Newland.
 
</body></html>

prateek24-ezbwHMbNAk

Australia third most popular country for overseas students: Savills 

<html><body>
A four-bedroom house at Rural View in Queensland’s Mackay district has been sold for $420,000 under mortgagee conditions.
The property at <a href="https://www.realestate.com.au/sold/property-house-qld-rural+view-126263814" target="_blank">22 Rural View Drive</a> was marketed as ‘Mortgagee in Possession’.
The selling agent was Mandy Hall of Hall &amp; Co.
The rustic home is spread over 2.4 acres, or 9,880 sqm.
It last changed hands for $550,000 in 2009, according to CoreLogic data.
</body></html>

Rural View, Queensland mortgagee sale at a loss 

<html><body>
Industrial and logistics occupiers are on an overall basis, optimistic about the future with a majority hoping their businesses will be better off financially over the next 12 months, according to a new survey by commercial real estate firm CBRE.
According to the Industrial and Logistics Occupier Survey Report by CBRE, 66% of respondents expect their business to be better off financially, while a quarter said expecting things to stay the same over the next 12 months (Figure 5).
<a href="https://www.propertyobserver.com.au/images/2017/09/25/CBREchart1.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/09/25/CBREchart1.png" alt="">
CBRE engaged TNS Kantar for the survey that aimed to gain a better understanding of decision making, future plans and how changes in technology are impacting the industry. 
The warehousing and distribution sector is the most positive with 86% of respondents expecting their business to be better off, while 61% of the transport sector had a positive financial outlook (Figure 6).
<a href="https://www.propertyobserver.com.au/images/2017/09/25/CBREchart2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/25/CBREchart2.png" alt=""> 
Increases in road tolls, particularly in Melbourne, and the introduction of a container charge to be levied on transport companies at Melbourne and Sydney ports may have been a factor for the flatter score, CBRE said.
“Victoria is experiencing stable economic growth and solid wage growth. These favourable economic conditions have been reflected in the results of the survey,” said the report.
Victorian businesses have the strongest outlook with 76% expecting their business to be better off than what it is now while only 65% of NSW businesses said the same.
Furthermore, 48% of Victorian businesses are considering hiring more staff compared to 29% for NSW businesses. NSW’s softer results follow a period of very strong economic growth driven by construction activity in the housing and infrastructure sectors which is easing from high levels - the slowdown in momentum may have driven the flat results.
On the other hand, 70% of Queensland based survey respondents expect to be better off which reflects a period of flat economic performance which is now turning around, encouraging positivity in the sector. 
<a href="https://www.propertyobserver.com.au/images/2017/09/25/CBREchart3.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/09/25/CBREchart3.png" alt="">
Australian manufacturing has recorded negative Gross Value Add (GVA) growth for the past 18 out of 19 quarters and has been a significant drag on industrial output. Conditions in manufacturing remain mixed, although not all areas are contracting. 40% of manufacturing respondents indicated that they were expecting a high level of staff growth over the next 12 months; however, the sector also had the highest level of staff contraction (17%). As the Australian manufacturing industry shifts towards a smaller scale, high technology offering, there will be a shift in the number of staff required in each facility.
Overall, the survey suggests the strongest net growth is in the retail and warehousing industry closely followed by transport. Unsurprisingly, manufacturers have the lowest net growth expectations.
</body></html>

Industrial and logistics occupiers positive on growth outlook: CBRE survey

<html><body>
The new Parramatta office complex that will house the New South Wales Department of Education offices has 'topped out' and is expected to be complete by March 2018.
The department will have 1,800 employees working there.
The topping out ceremony on Monday of <a href="https://www.realcommercial.com.au/property-offices-nsw-parramatta-502320926" target="_blank">105 Phillip Street</a> was attended by Dr Geoff Lee, State Member for Parramatta along with senior executives of Dexus and Charter Hall.
The building has a fit-for-purpose design that focuses on its occupants, according to a media release. 
It is being developed by Dexus with Built as the builder. The property is owned by Charter Hall. Dexus will manage the property after its completion.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/19/PhilipSt2.jpg" alt="">
Dexus recently announced three new tenancy commitments at The Axxess Corporate Park in Mount Waverley, following upgrades to the properties by the property group.
It will “essentially become a vertical community”, comprising 25,000 sqm of A-Grade office space and amenities that include a rooftop terrace with a communal outdoor dining area and sports court.
“The topping out is a significant milestone in the development of 105 Phillip Street. This development strongly supports Parramatta’s growth as a place to invest and to do business, while delivering a world-class, fit-for-purpose office space for our customer, the New South Wales Department of Education,” said Ross Du Vernet, chief investment officer at Dexus.
Dr Geoff Lee, State Member for Parramatta said it was the start for thousands of jobs coming to Parramatta. 
“Not only is Parramatta the capital of Western Sydney, it is the capital of education,” he added.
The building is close to transport links and incorporates end of trip facilities to complement the workspace. 
It has also achieved a 6-star Green Star Design rating, the first of its kind for a building in Parramatta and is expected to receive a 6-star Green Star As Built rating post completion and 5 star NABERS Energy rating.
As part of the project, the urban landscape will also undergo a makeover, replacing the plaza with a landscaped through site link between Phillip and George Streets, creating a connection with the streetscape.
 
</body></html>

105 Phillip Street Parramatta tops out: Dexus

<html><body>
Commercial property sales volumes in Gold Coast for assets valued from $2 million to $10 million have increased in comparison to five years ago, with private local investors dominating the purchases, followed by owner occupiers, says Colliers International.
Yields have also compressed during the five-year period, and Colliers expects continued strong demand across the commercial property sectors until December 2018.
The real estate firm said it had recorded $225.85 million worth of sales across office, retail and industrial sectors for 2016/17, a 43 per cent increase from 2011/12.
“The total dollar volume of transactions increased across the retail and industrial sectors whilst the office sector was slightly lower than 2011/12, due to lack of stock on hand rather than slowing demand,” said Helen Swanson, research manager at Colliers International.
“There is currently fierce competition from privates, self-managed super funds and syndicates for all forms of commercial assets that are strategically located and offer a positive cash flow.” 
<a href="https://www.propertyobserver.com.au/images/2017/09/19/ColliersGC1.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/09/19/ColliersGC1.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/09/19/ColliersGC2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/19/ColliersGC2.png" alt="">
Industrial was the best performing sector, with the sales volumes increasing by 50 per cent over the five-year period to $82.79 million, according to Darrell Irwin, director in charge at Colliers International on the Gold Coast. 
“Driving this demand of late has been an upswing in the Gold Coast economy, especially the tourism and construction sectors. Other industries which are active in this market are automotive, health and medical, marine, and small to medium enterprises (SME’s),” said Irwin.
“The Gold Coast has the highest number of SME’s per head of capita Australia-wide. It is easy to see how this flows onto the heightened demand for industrial property from all buyer groups, particularly from owner occupiers who are generally willing to pay a premium.”
The retail sector was the second best performing sector with sales volumes increasing by 41.8 per cent to $75.448 million over the five-year period. Equivalently, retail warehouses also increased in sales from $6.5 million to $36.3 million over the same period, Colliers said in its research report.
“Strong tourism industry coupled with above average population growth rate and well performing residential sector over the last year has helped support the retail investment market on the Gold Coast,” added Irwin.
The limited stock in the office sector over the years meant the sales volumes were slightly down but the level of competition remained fierce, he said.
“Because of the pent-up demand and lack of supply, yields for office assets have compressed significantly since 2011/12 to sit at an average of 7.5 per cent. 
“The interest in office investments on the Gold Coast is likely to continue considering the positive net absorption rates, strengthening of the rental market and a slight easing in incentives,” Irwin said.
</body></html>

Gold Coast commercial property sales up by 43 percent: Colliers   

<html><body>
DIY real estate agency buyMyplace Group announced it has entered into arrangements with a financial services group to offer up to six months’ interest-free credit to help customers prepare their home for sale or in covering their sale or moving costs. 
The two products being introduced through through its tie-up with subsidiaries of the FlexiGroup Limited are: 
<ul>
<li>Oxipay, a buy now and pay over time finance solution. Customers will be able to use Oxipay to upgrade their buyMyplace package or cover other costs such as conveyancing or property inspections over four instalments. </li>
<li>Up to six months’ interest free on purchases of $250 or more via the Lombard 180 card. The facility will allow buyMyplace customers to manage pre-sale expenses such as small renovations, landscaping and other home improvements which may in- crease their sale price, as well as post sale costs, such as moving or costs associated with their next property purchase.</li>
</ul>
The arrangement is in line with buyMyplace’s aim to become a one-stop property shop, according to its CEO Paul Heath.
“We want to give vendors the best outcome when it comes to the sale of their property and a smooth transition to their next home,” said Heath. 
“House prices are increasing and by giving vendors an interest free option to make improvements to the property they have for sale, or even enabling a renovation to their next home, we can create a better outcome while reducing some of the stress in moving.” 
Heath said that buyMyplace would not profit out of this arrangement as it will not earn any commissions nor pass on any merchant fees to its customers. 
<a href="https://buymyplace.com.au/" target="_blank">BuyMyplace</a> follows a fixed fee Purplebricks-style operating model. Heath said earlier that vendors would save more than $15,000 in agent commissions through its model.
CEO of FlexiGroup, a top 200 ASX company, Symon Brewis-Weston welcomed the partnership, saying: “It is exciting to be working with leading DIY commission free real estate compa- ny, buyMyplace, to provide its vendors greater convenience as well as an easy transition between properties. 
</body></html>

DIY real estate agency buyMyplace partners with FlexiGroup arm to offer interest-free credit to sellers

<html><body>
Investec Australia Property Fund (IAPF) has announced the acquisition of an industrial property in Hallam, Melbourne for $22 million on an initial yield of 6.3%. 
The property at <a href="https://www.realestate.com.au/property/11-siddons-way-hallam-vic-3803" target="_blank">6-8 and 11 Siddons Way</a> comprises two separate buildings with a gross lettable area of 15,504 sqm.
It is split into warehouse and distribution facilities along with office accommodation.
The site area is 32,701 sqm.
The property is 33 kilometres south east of the Melbourne CBD in one of the city’s most established industrial precincts. The property has easy access to major arterials and freeways including the South Gippsland Highway, Eastlink and the Monash Freeway. 
IAPF chief executive Graeme Katz said the acquisition would take the value of the fund’s total portfolio to $801 million.
“The property is located in one of Melbourne’s most tightly held industrial precincts which is home to other significant companies such as Ceva Logistics, Australia Post and TNT. In addition, Amazon has just announced it will locate its first Australian distribution facility in the adjoining suburb of Dandenong South. 
Settlement of the property is expected by mid-October, said IAPF.
The Johannesburg-listed IAPF, which helps South African investors access Australia’s commercial property market, said the acquisition is accretive for the fund and will be funded by utilising its existing debt facility.
The property is 100% occupied by Australian retailer Focus on Furniture, which uses the property as their national office and main distribution warehouse. 
Focus on Furniture has been operating for 15 years and specialises in lounges, dining and bedroom suites. 
It currently has 33 stores in Victoria, NSW, ACT, South Australia and Queensland with more than 150 staff. 
Focus on Furniture is on a long lease, expiring in 7.8 years with annual rent increases of 3%.
Following the acquisition, IAPF will be geared to 35% with a weighted average cost of debt of 3.67% and hedged to 87% for an average of 7.2 years, it said.
“The acquisition aligns well to the Fund’s strategy of investing in well-located, high quality assets that provide a sustainable income stream for investors,” Katz said.
He added that though the property had a strong tenant, it has flexible future uses and could potentially be split into two separate units to accommodate multiple users. It is also split over two titles which could be sold separately.
 
</body></html>

Investec Australia Property Fund acquires Melbourne industrial property for $22 million

<html><body>
The home of Bondi Wholefoods, as well as the modern Bondi Beach Apartments complex, is set to hit the market for auction in October.
The listing of <a href="https://www.domain.com.au/building-profile/30a-hastings-parade-north-bondi-nsw-2026" target="_blank">30a Hastings Parade, North Bondi</a> follows last month’s successful sale of a block of eight residential apartments plus retail at 134-138 Campbell Parade for $18.25 million with the rental return of 2.7%.
The beach block will go to auction on October 19.
Positioned in the heart of Bondi’s “Golden Triangle”, on the corner of Hastings Parade and Wairoa Avenue North Bondi, the former Bondi Police Station was redeveloped in 2011 by the local identity, Ash Samadi.
The block consists of seven one, two and three-bedroom apartments and retail space which has been the home of the organic retailer &amp; café, Bondi Wholefoods, since completion.
The listing agents are Colliers International’s Miron Solomons and Matt Pontey along with Alexander Phillips and Anthony Puntigam of Phillips Pantzer Donnelley.
“The tenancy mix of luxury apartments and flagship retail means investors enjoy a balanced portfolio at Australia’s most famous beach,” said Miron Solomons of Colliers. 
Tenancies are long-term leases that expire in March 2021, with further five-year options, generating income of nearly $630,000 p.a.
 
 
</body></html>

Another Bondi beachfront block with retail hits the market

<html><body>
A purpose-built horse stable complex in the Bundall Equine Precinct on the Gold Coast owned by racing legend Mick Dittman has been listed for sale.
The property at <a href="https://www.realcommercial.com.au/property-land+development-qld-bundall-502549070" target="_blank">88 Racecourse Drive, Bundall</a>, has been leased by leading trainer Toby Edmonds.
It is on a nearly 3,000 sqm block and is being marketed via expressions of interest ending October 6 through Ray White Broadbeach.
The listing agents are Tony Grbcic and Adam Grbcic.
Grbcic said the property is the newest and most modern facility within the Bundall Equine Precinct.
It is rented for nearly $175,000 plus GST per annum on a three-year lease with a two-year option.
The facility is part-owned by Mick Dittman, who during his jockeying career won more than 1,700 races including the Melbourne Cup, Caulfield Cup, two Cox Plates and three Golden Slippers.
“It is also the closest facility to the Gold Coast Turf Club, therefore, there has always been a high demand and high occupancy at this complex,” Grbcic said.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/13/Racecourse2.jpg" alt="">
The complex includes a gross building area of approximately 1,885 sqm over two levels, 60 stable boxes, covered walker facility with a state of the art treadmill, and a two-bedroom caretaker’s residence. 
“The strength of this precinct and property is underpinned by the locality and facilities of the Gold Coast Turf Club,” he said.
“The ongoing upgrades and infrastructure at the Turf Club are a representation of the strength and growth in the local racing industry.”
 
</body></html>

Legendary jockey Mick Dittman's stable complex in Gold Coast up for sale

<html><body>
Australia’s top cities Sydney, Melbourne, Brisbane and Canberra are approaching the peak of market position in the retail market, according to property advisory firm Herron Todd White’s latest commercial property clock.
However, the peak of the market position continues to be empty.
The approaching the peak cycle slots are completed by the Gold Coast and Coffs Harbour, though Newcastle has dropped a notch to 'rising market' from the last time in June when the retail market was tracked.
Perth remains at the bottom of the market, along with another capital city, Darwin, which is the new entrant to the group. Darwin slid two notches from being a declining market in June.
The other joiners are Emerald and Gladstone.
Adelaide is now at the start of recovery, same as Cairns.
Retail property markets are influenced by a variety of factors from economy to technology, though the performance of retail property investments can be distilled down to a very important measure – rents, say HTW.
Tenant success has a direct impact for landlords and wading through the nuances of retail rents can be a challenge.
<a href="https://www.propertyobserver.com.au/images/2017/09/11/Sept13CommPropHTWRetailClock.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/11/Sept13CommPropHTWRetailClock.png" alt="">
 
</body></html>

Four capital cities closing in on peak of retail market: HTW commercial clock

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 

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" dir="auto">
<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
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.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

Prateek Chatterjee

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News