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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.
 
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prateek24-ezbwHMbNAk

Australia third most popular country for overseas students: Savills 

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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.
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Rural View, Queensland mortgagee sale at a loss 

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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.
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Industrial and logistics occupiers positive on growth outlook: CBRE survey

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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.
 
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105 Phillip Street Parramatta tops out: Dexus

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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.” 
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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.
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Gold Coast commercial property sales up by 43 percent: Colliers   

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

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

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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.
 
 
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Another Bondi beachfront block with retail hits the market

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

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

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

Joel Robinson

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

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

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

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

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

Prateek Chatterjee

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