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The office market continues to stay without a peak of market occupant, with Melbourne staying put along with three other cities at the approaching the peak position, similar to the previous update in April from valuation firm Herron Todd White.
However, the latest July office clock indicates that the list at the bottom of the market has swelled, with April occupants Adelaide, Darwin, Hobart, Burnie, Cairns, Devonport, Launceston, Townsville and Wide Bay joined by two capital cities, Brisbane and Perth.
<a href="https://www.propertyobserver.com.au/images/2017/07/10/HTWJulyOffice.jpg" target="_blank">Click to enlarge</a>
<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/2017/07/10/HTWJulyOffice.jpg" alt="">
 
Sydney remains a rising market, with an undersupply for office rentals relative to demand, according to the Office Market Indicators. 
Melbourne is a balanced market, though there is an oversupply of available property for rent. 
Brisbane and Perth are grappling with a large oversupply, which probably explains their bottom of market position.
<a href="https://www.propertyobserver.com.au/images/2017/07/10/HTWCapitalCityMarketIndicators.jpg" target="_blank">Click to enlarge</a>
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<a href="https://www.propertyobserver.com.au/images/2017/07/10/HTWMarketIndicators.jpg" target="_blank">Click to enlarge</a>
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The April clock had NSW Far North Coast approaching the peak of market, but has dropped two notches since then to the start of recovery position.
<a href="https://www.propertyobserver.com.au/images/2017/07/10/HTWAprilOffice.jpg" target="_blank">Click to enlarge</a> 
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prateek24-ezbwHMbNAk

Melbourne, Gold Coast approaching peak of cycle for office market: HTW property clock

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A Woolworths-anchored Beaudesert Central shopping centre has been snapped up by a fund manager for $16.85 million in an off-market deal through Savills.
Beaudesert is a town 70 kilometres south of Brisbane and Beaudesert Central is the dominant centre servicing the region. 
Following this deal, Melbourne-based MPG Funds Management has now added the centre to its open ended MPG Retail Brands Property Trust, which now operates 11 retail assets across Australia with a combined value of more than $100 million. 
The transaction reflected an initial yield of 6.5%.
It was brokered by Savills’ Peter Tyson and Jon Tyson on behalf of a private vendor. 
“The MPG Retail Brands Property Trust had been seeking a suitable Queensland asset for the portfolio for some time. The Beaudesert Central acquisition is the first Queensland asset in the fund,” Tyson said.
The shopping centre comprises a single-level, open neighbourhood shopping centre developed in 2007 and is anchored by a 3,279 sqm Woolworths supermarket with 12 specialty tenants. 
The centre sits on a 14,230 sqm site fronting the Mount Lindesay Highway, adjacent to the central business precinct.
MPG managing director Brett Gorman said the Beaudesert Central is located in an area with strong forecast growth, so “it is a great fit for our business”. 
“The other emerging economic driver of the region is the recent catalyst development of the long-mooted in-land port road–rail hub of the Bromelton State Development Area which is now under development. This major project is expected to generate significant employment opportunities going forward,” added Tyson.  
Other recent transactions brokered by Savills this year include SCA’s acquisition of both Mudgeeraba Market and Worongary Town Centre on the Gold Coast for a combined $82.1 million, the sale of Park Village in Brisbane’s west for $35.2 million, and the sale of Pittsworth Plaza for almost $10 million. 
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Beaudesert shopping centre sold for $16.85 million through Savills  

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Palace Cinemas is expanding into Melbourne’s west with their eighth Melbourne complex in the Moonee Ponds precinct.
The group, which operates 85 screens across 20 locations nationally, has plans for a 12-screen cinema at Puckle Street.
It will include 3 platinum screens, a total 620 seats and an outdoor cinema space. The cinema will be part of a retail, hospitality, accommodation and leisure development by Giancorp Property Group in Melbourne’s inner West.
Palace Cinemas’ CEO Benjamin Zeccola said the group had been looking to set up shop in Melbourne’s West for a while now. 
“Our audiences had expressed that there was a real market gap in cinemas delivering a premium experience and offering quality film in that area, so when the opportunity arose to be part of a stylish new development in Puckle Street it was perfect,” he said.
Palace Cinemas also said new cinemas had been confirmed for Melbourne’s Old Pentridge Prison in Coburg, as well as Sydney suburbs Double Bay and Chippendale, and Raine Square in Perth.
With the expansion, the group was poised to introduce a “wider audience to its unique combination of entertainment hospitality,” it said in a release.
Construction at Moonee Ponds is expected to begin in 2017 with the opening expected in 2019.
In 2016, Palace Cinemas bought office space in <a href="/expert-insights/investing/palace-cinemas-to-move-hq-after-south-yarra-purchase">South Yarra</a> for $3.5 million with the intention of making it the group's new headquarters.
 
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Palace Cinemas to expand into Melbourne West with 12-screen cinema at Moonee Ponds

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Three new tenants, including Property NSW, are moving into Mirvac's office tower at 101 Miller Street in North Sydney.
The new tenants -- Property NSW, Bedford CA and Access Innovation Media --  will in total occupy more than 4,700 sqm, bringing the premium grade office building to 83 per cent leased, Mirvac and joint owner and TH Real Estate said in a media release.
Property NSW has leased over 2,800 sqm on levels 21 and 22, for a five-year term, as it expands to accommodate more employees.
Bedford CA has leased over 1,428 sqm on level 16 for a seven-year term while Access Innovation Media will occupy 487 sqm on level one for a five-year term.
Mirvac’s general manager of Leasing and Agency Services, Paul Bezzina, said the commercial property market in North Sydney offered an exceptional working environment and access to retail facilities, hospitality and transport. 
“Located in the heart of North Sydney, 101 Miller Street is not only in close proximity to a variety of food and retail options, the office features fresh workspaces with refurbished ceilings, carpets and bathrooms,” said Bezzina.
Commenting on the leasing activity, TH Real Estate’s head of asset management, Australia, Jayson Egan, said the tenant demand in North Sydney remained strong. 
“With the low vacancy in the Sydney CBD, tenants are increasingly seeking alternative locations like North Sydney, which are more affordable and provide an outstanding work environment. We expect this trend to continue throughout the year,” Egan said. 
Mirvac is currently upgrading the office floors, the foyer and end-of-trip facilities which are expected to be completed later this year.
TH Real Estate is an investment affiliate of Nuveen (the investment management arm of TIAA), is one of the largest real estate investment managers in the world with about $99 billion in assets under management.
Recently, the Grand Pavilion Penthouse at the Mirvac-built Eastbourne project overlooking Fitzroy Gardens sold for close to $14 million.
 
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Mirvac's 101 Miller Street office tower has three new tenants

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Airbnb is not just a city phenomenon, with a recent survey released by the peer-to-peer accommodation platform showing that more than half of its bookings in Australia are now for stays in country towns or coastal ­resorts.
Australia is the only major country in the world where ­regional Airbnb stays surpassed city bookings last year, according to a report in The Australian.
Regional stays comprised 56 per cent, or 1.7 million guest ­arrivals, last year, the survey said.
Popular regional destinations included Cairns, Noosa and the Gold Coast in Queensland, Byron Bay in NSW, the Great Ocean Road in Victoria, Margaret River in Western Australia, and Robe, Victor Harbor and Kangaroo Island in South Australia, according to The Australian.
Regional Australian getaways are more popular with locals, who take mini-breaks during long weekends to head out to the country and book a stay through Airbnb, unlike the trend in cities where it’s mostly foreign visitors.
Meanwhile, Airbnb continues its march in Sydney, with entire home listings expected to grow to 44,000 following an announcement by the NSW government that it supports short-term letting in state, short-term rental management service MadeComfy said recently.
As an illustration of the popularity of the platform in regional Australia, an entire cabin '<a href="https://www.propertyobserver.com.au/https://www.airbnb.com.au/rooms/7042427?location=Kangaroo%20Island%2C%20South%20Australia&amp;s=oDY6G4ID#neighborhood" target="_blank">The Dolls House</a>' in the township of Kingscote in Kangaroo Island is available for $85 a night. The cabin has all amenities like kitchen, shower and toilet etc. 
The ad has 85 reviews.
<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/2017/07/05/Dolls1.jpg" alt=""> 
Property Observer also found a <a href="https://www.propertyobserver.com.au/https://www.airbnb.com.au/rooms/4874403?location=Byron%20Bay%2C%20New%20South%20Wales&amp;s=-GrnLeIw%20" target="_blank">bungalow in Byron Bay</a> in NSW that is close to the beaches. The entire home can be rented out for $115 per night.
According to host Lainie, the bush setting is only a few minutes drive from the beaches.  
<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/2017/07/05/Byron.jpg" alt="">
 
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Airbnb bookings in regional Australia surpass cities

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The NSW government, which has a property portfolio of $134 billion, is seeking to improve the way it manages property through use of data and analytics.
The use of data to drive better performance is a key theme in a new report, Data Analytics in the Property Sector, which looks at how data is transforming the way property is created, built and maintained around the world.
Global cities such as New York and London are already using technology to collect data to plan and create buildings and public spaces that meet the needs of the community, it notes.
The report, released by Property NSW, encourages a broader rethink on ways the NSW government can better leverage data.
Research shows that 80 per cent of NSW residents surveyed support the government using its existing data to better inform decision-making on new services and better infrastructure.
It highlights a number of case studies on how the property industry is using data to better understand customers, tenants and users to improve planning, design, building and maintenance solutions.
The report suggests ways industry and government can work together to improve cities. 
For example, a public, open GIS-based service could be used to collect information from bank systems that process debit and credit cards and offered to a property developer to tell them about the sort of products that are popular in a particular geography.
It cites the example of Machvisor, in the US, an analytics tool that helps “real estate investors properly assess housing market conditions, price forecasts, risk metrics, demographic shifts and market fundamentals in any given neighborhood throughout the United States”. 
Property NSW CEO Brett Newman said the government owns more than 270,000 properties across the state, but “ownership is fragmented and data often sits in siloes across agencies”. 
“By improving the way we collect, distil and present our property data, we can ultimately deliver greater transparency and better outcomes across the portfolio,” he said.
As a case study of government initiatives in Australia, it cites the example of Land and Property Information (LPI) which made property sales information freely available for the first time via NSW Globe in September 2015 to help buyers and investors make more informed decisions when buying and selling property. 
Previously, anyone wishing to access this information had to purchase it from the LPI website or via a third-party provider.
Property NSW is collaborating with the NSW Data Analytics Centre on options to bring cutting edge changes to the way the state government manages its $134 billion property portfolio.
Dr Ian Oppermann, chief data scientist, NSW Data Analytics Centre, said the report provides insights on the way governments can use data to better manage their assets which is particularly relevant in NSW given the government’s significant and diverse property portfolio.
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Property NSW report highlights use of data to improve asset management 

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Auto accessories and parts firm Autobarn is on the lookout for sites with high visibility as it seeks to grow its network of stores across Australia.
The company has 121 stores across the country and has set a growth target of 200 stores in five years, it said in a media release.
The Australian company said it was seeking high-profile roadside locations at existing retail locations or greenfield sites, and is open to specific terms for each lease with every Autobarn franchise or a company-owned store. 
The company recently launched new stores in Canberra and Sydney.
Earlier this year, Autobarn also secured a showroom at the Millers Junction precinct in Altona North for $2.36 million.
Autobarn says its stores range from 500 sqm to 1,500 sqm, and size flexibility is a key point property owners and retail site developers can play on.
The company differentiates from competitors in that motorists can also have selected “parts and accessories fitted quickly and easily at each location, without the need for a full automotive workshop”.
In its pitch, the automotive retailer said property owners would only benefit from leasing out their premises to a brand like Autobarn.
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Auto parts retailer Autobarn shopping for stores

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The Australian Taxation Office is paying close attention to holiday rental properties following Assistant Commissioner Kath Anderson's statement last year the ATO had identified a large number of mistakes with deductions for rental properties, particularly with regards to holiday homes.
With the Australian Taxation Office sharpening its focus on the holiday home rental market, Wollongong accommodation provider Emerald and Aqua said this comes at a time when the event and sports-based tourism promoted by Destination Wollongong such as The CrossFit Games, Bravo Challenge and Yours and Owls has led to increased tourism numbers to the Illawarra.
Greg Channer, managing director of Emerald and Aqua, said that over the past 18 months the demand for holiday homes in the Illawarra has increased and its not uncommon that we are fully booked during events.
"All our holiday homes were booked during Wings Over Illawarra and Cross Fit Games and he expects the trend to continue as the popularity of Illawarra as an alternative holiday destination grows," he said.
"When speaking with our guests one of the reasons being cited is that the Illawarra is only 60 minutes from Sydney CBD and there are not the lengthy 3 to 4 hours traffic jam’s faced when travelling to the Central Coast.
According to the ATO, one of the key concerns in regards to holiday home owners is when people who rent out their holiday homes for just a few weeks a year try to claim full-year deductions.
The popularity of the sharing economy and platforms like Airbnb empowering anyone with a spare room or couch to earn some extra income as a host has led to an increase in confusion of the regulatory environment with many hosts unsure of what the legal risks of self managing are and the ATO’s scrutiny highlights this.
Channer said Emerald and Aqua gets calls weekly from hosts who have been self managing and unsure of the legal risks they face.
"As licensed real estate agents Emerald &amp; Aquais legally required to meet strict legislative and compliance requirements, our accounts are independently audited annually, we must comply with the Australian Consumer Standards and meet Commonwealth and State legislation governing Real Estate management," he said.
"We maintain high quality assurance of all record keeping. Each year at tax time we provide a report to each landlord detailing the income they have earned, the occupation rate and their own use of the property so that accurate reporting can be provided to their accountants to ensure they meet reporting standards.”
Bradley Beer of BMT, a quantity surveyors firm specialising in tax depreciation, suggests these compliance guidelines to assist holiday home owners in accurate recording of use:
<ul>
<li>If you use your property personally throughout the year and then use it as an investment property for part of the year, you will need to prove to the Australian Taxation Office (ATO) that the property is an authentic investment.</li>
<li>You should be able to claim deductions which include the interest expense of the mortgage for the times that your property was rented out. These will be apportioned between the time your property was rented out and the time it was occupied for personal use.</li>
<li>Maintenance as an expense is deductible, though travel expenses to inspect your property or for general maintenance associated with your personal use of the property is not an income tax deduction.</li>
<li>The great news is you may get higher depreciation allowances on holiday accommodation, because some short stay accommodation qualifies for 4 percent depreciation for 25 years compared to the standard 2.5 percent for 40 years. If your property is furnished your depreciation claim can be quite substantial as furniture depreciates quickly giving you greater claims earlier.</li>
</ul>
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With Illawarra's growing popularity, ATO spotlight on holiday homes grows 

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Domus Multifamily Real Estate Fund has completed the acquisition of a portfolio of US large-scale multifamily assets with Australian investors in an off-market deal for $168 million.
Domus, a managed investment scheme, teamed up with its investment partner US-based Geringer Capital, has acquired eight large-scale multifamily buildings, with the raising for seven assets fully subscribed and an additional raising for the eighth asset to be completed by August 2017, it said.
Multifamily real estate is any building with five or more separate dwellings held on a single legal title and leased to individual tenants. 
The Domus Fund expects to invest in US multifamily assets with below free-market rents and below replacement cost in areas which are poised for growth. 
US multifamily has consistently proved to be one of the most secure and stable of all real estate sectors over the long term, according to Domus, which has a long-term acquisition and hold strategy. 
The purchase cost and refurbishment came to US$174 million. Domus acquired the assets within the portfolio using floating rate acquisition debt of US$140 million, with the fund raising over US$20 million in equity. 
LS Global Advisors, an Australian advisory group, led the local capital raising for Domus in Australia.
“Australian investors are confident because they are investing at a time when home ownership rates in the United States are falling and rentals are rising due to affordability issues plus the prospect of 35 year financing a major drawcard,” said Les Koltai, principal of LS Global Advisors.
In 2013, the Domus US Multifamily Real Estate Fund had plans to test the test Australian investor appetite for American rental property, with a listing on the ASX. But the IPO plans fizzled out in the wake of the US Federal Reserve signalling an end to the quantitative easing policy and its repercussions on markets.
With the recent acquisitions, Domus has again tapped sophisticated Australian investors. 
“The multifamily class of assets is unique to the US which accounted for the significant interest from Australians in the raising,” said chief executive of Geringer Capital, Robert Geringer.
The assets are in a range of locations across the western states of the US in Arizona, Colorado, Oregon and Utah. 
They provide stable long- term income and have the potential for future capital growth, according to Geringer. 
<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/2017/06/22/Domus2.jpg" alt="">
One of the advantages of multifamily real estate in the United States is that it can qualify for low fixed rate, long term (up to 35 years) non-recourse US Government insured debt which currently carries an interest rate of 3.25 % per annum. 
The debt facility was provided by Jeffries-LoanCore and arranged by real estate investment bankers Ackman Ziff. 
Domus said it will make improvements to the properties to increase rental income ahead of refinancing with low, fixed rate, long term, non-recourse, US Government guaranteed debt under the HUD Program or other US Government agency debt. 
“Investors liked the attractive returns with a conservatively forecast investor IRR of more than 18%, the repayment of invested capital in approximately 18 months’ time and the USD exposure,” said Les Koltai.
Each individual property contains between 83 and 269 apartments housed throughout two or three level buildings and spread across well maintained acreage. The portfolio comprises 1,296 individual apartments. 
The purchase price for the portfolio was negotiated off-market by Geringer Capital and is below the estimated replacement cost, said Domus.
Together with Geringer Capital, Domus will make further large scale portfolio acquisitions which it is actively pursuing ahead of an IPO. 
Domus Investment Management chairman and former head of institutional property lending for the Commonwealth Bank, Peter Barne Australian investors were being offered solid returns underpinned by long term debt capital “which is simply not available in the Australian market”. 
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US fund Domus acquires multi-family assets for $168 million with Australian investment 

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A student accommodation provider has put a portfolio of 14 long-term leasehold properties in central Sydney on the market through Savills.
The Furnished Property business currently provide 326 beds in 203 bedrooms and offer student and short-stay accommodation.
The listing comes amid a trend of increasing student numbers in the Harbour City. 
Full time international student numbers in Sydney’s five largest central Sydney universities showed strong growth in the last two years of available data (2014/2015) with increases of 4,115 and 3,221 respectively, according to Savills. 
Anecdotally, it appears that this growth has continued in 2016/2017, it says even as supply struggles to keep up with demand.
Savills Research indicated that 2,022 beds are in the development pipeline with development approval, or under construction, with expected completions from 2018-2020. 
The marketing is being handled by Conal Newland of Savills Australia.
<a href="https://www.propertyobserver.com.au/images/2017/06/21/SAVILLSSTU.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/21/SAVILLSSTU.png" alt="">
Newland had previously noted that there was a "critical undersupply" of appropriate Purpose Built Student Accommodation (PBSA) in Sydney.
The Furnished Property portfolio currently targets students, but is flexible enough to attract other occupiers.
“First established in 2001 by the current owners of the Furnished Property Business, the portfolio has steadily grown over the last 16 years. Its extensive track record of profitable performance demonstrates excellent margins and growth and includes a diversified range of accommodation offerings,” said Newland.
The portfolio comprises self-contained studios, one and two-bedroom apartments, together with twin and triple shared bedrooms. Most properties have communal facilities.
The majority of the properties are within 3.5 km of the Sydney CBD and all are close to amenities and public transport, according to Savills.
The expressions of interest campaign for Furnished Property closes July 19. 
“This portfolio presents an existing opportunity to acquire a well-established student housing business with significant opportunities to enhance returns and expand further into Sydney’s buoyant short-term accommodation market,” Newland said.
 
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Furnished Property lists 14 student accommodation properties for sale 

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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