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<p>Print communications business Blue Star Group will consolidate three Melbourne offices to a single warehouse after signing a long term lease in the Melbourne south-eastern suburb of Keysborough.<span style="line-height: 1.3em;"> </span></p>
<p>The property, 70-86 Atlantic Drive, is part of Australand's Key Industrial Estate and was let on a long term lease of what is believed to be around $90 per square metre.</p>
<p><span style="line-height: 1.3em;">Savills Associate Director, Daniel Kelly, said access for staff was an important consideration for Blue Star Group when signing the lease.</span></p>
<p>"The tenant was in the market for a property which ticked all the boxes for a national manufacturing and distribution firm with a focus on ease of transport solutions and with the flexibility to grow the operation," Mr Kelly said.</p>
<p><span style="line-height: 1.3em;">"They were also attracted to the modern high-bay warehouse, on-grade loading and docks and ease of access to the CBD, docks and interstate via Melbourne’s freeway network."</span></p>
<p><span style="line-height: 1.3em;">The office and warehouse comprises a 6789 square metres. The high bay warehouse is 6452 square metres with the office space  sized 337square metres.</span></p>
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Australand warehouse let to Blue Star Group

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<p>GUEST OBSERVER</p>
<p>Australia’s apartment boom is in full swing. Nationally, 40% of new dwellings are now apartments or units, and building approvals outnumber those for houses. Melbourne and Brisbane are the most extreme cases, but these trends are national; and they are fundamentally reshaping the future of urban Australia.</p>
<p>In Melbourne, for example, the inner city is being flooded with 1-2 bedroom micro-apartments set in increasingly tall towers (+30 storeys). Almost half are under 50 square metres - not much bigger than a generous double garage. These would be outlawed in other world cities, including Sydney. The Property Council of Australia and much of the industry acknowledges the problem. Victorian Planning Minister Richard Wynne has now released a <a href="https://delwp.vic.gov.au/planning/policy-and-strategy/better-apartments" target="_blank">discussion paper</a>, and there is a plan for new guidelines next year.<span style="line-height: 1.3em;"> </span></p>
<p><img src="/images/2015/05/26/Horne1.png" alt=""></p>
<p><span class="caption">The differences between a small one bedroom 42 m2 apartment and a standard one bedroom 50 m2 apartment.</span> <span class="attribution">RIBA Homewise – The Case for Space: The size of England’s new homes. Included in Future Living, City of Melbourne, 2013.</span></p>
<p><span style="line-height: 1.3em;">The market is not delivering what families need, and as a result, future liveability in Australian cities is in jeopardy. Much of the commentary is about size and density. An urgent discussion is also needed about quality and the market.</span></p>
<p>Reports of “vertical slums” are not entirely unwarranted. Apartments can be great homes – why are ours so mismatched with families and affordability concerns? For working families in the city who need access to services and work, there are few affordable alternatives.</p>
<h2>Quality vacuum – a race to the bottom</h2>
<p>Many new apartments have bedrooms with no windows, low ceilings and inadequate storage. They have poor access to natural light and ventilation, and underperform on environmental efficiency. Internal amenity of apartments is <a href="https://www.melbourne.vic.gov.au/BuildingandPlanning/FutureGrowth/Documents/future_living_discussion_paper.pdf" target="_blank">comparatively under-regulated</a>. Apartment bedrooms without windows, for instance, are illegal in New York, Hong Kong and Vancouver.</p>
<p><img src="/images/2015/05/26/Horne2.png" alt=""></p>
<p><span class="caption">An example of the features included in a ‘poor’ housing development.</span> <span class="attribution"><a class="source" href="https://www.melbourne.vic.gov.au/BuildingandPlanning/FutureGrowth/Documents/future_living_discussion_paper.pdf" target="_blank">Future Living, City of Melbourne 2013</a></span></p>
<p>Current regulation is failing families and future Australians. Building Code of Australia (BCA) and National Construction Code (NCC) requirements, borne out of original concerns with safety, are seemingly inadequate to the delicate task of ensuring quality while enabling innovation. Even the Guidelines for Higher Density Development (<a href="https://www.dtpli.vic.gov.au/planning/urban-design-and-development/urban-design-guidelines/higher-density-residential-development" target="_blank">DPCD 2004</a>) fail to provide specific and measurable outcomes, with high-level objectives that are evidently easily bypassed in practice.<span style="line-height: 1.3em;"> </span></p>
<p><img src="/images/2015/05/26/horne3.jpg" alt=""><span style="line-height: 1.3em;"> </span></p>
<h2>Marketing airspace - unconstrained towers</h2>
<p>A <a href="https://www.churchilltrust.com.au/media/fellows/Hodyl_L_2014_Social_outcomes_in_hyper-dense_high-rise_residential_environments_1.pdf" target="_blank">recent report</a> unfavourably compares Melbourne’s high-rise rules to those of world cities. Developers in Melbourne can build at four times the densities allowed in New York, Tokyo or Hong Kong. Moreover, inner city developers are generally under <a href="https://www.melbourne.vic.gov.au/BuildingandPlanning/FutureGrowth/Documents/Homes_for_People_Housing_Strategy_2014-2018.pdf" target="_blank">no obligation to contribute</a> to essential public infrastructure, such as affordable housing and community facilities, through density bonus systems. The findings are nothing short of damning, not least for a city that prizes itself, year on year, as the “world’s most liveable city”.</p>
<p>Market-driven urban development “logic” is rarely questioned, but there’s evidence of wholesale market failure. Much of our high density, high-rise apartment stock caters to the local and overseas investor market, enticed by favourable taxation and regulatory regimes. Putting aside concerns about the potential impact of tightening regulations on foreign property investments, many new apartments seem basically <a href="https://www.melbourne.vic.gov.au/BuildingandPlanning/FutureGrowth/Documents/Homes_for_People_Housing_Strategy_2014-2018.pdf" target="_blank">unaligned to households’ and families’ changing needs</a>.</p>
<p>Two priorities emerge: for reform, and for understanding changing housing needs.</p>
<h2>Reform or regret</h2>
<p><a href="https://www.churchilltrust.com.au/media/fellows/Hodyl_L_2014_Social_outcomes_in_hyper-dense_high-rise_residential_environments_1.pdf" target="_blank">Hodyl’s report</a> makes a case for urgent market reforms to establish density controls; density bonuses to link development to public benefit, including open spaces, affordable housing and community facilities and an enforceable tower separation rule to mandate the minimum distances between towers. It also argues that Melbourne would benefit from apartment standards.</p>
<p>In Sydney, guidelines and processes have long been in place to regulate minimum apartment sizes, maximum numbers of apartments per floor, requirements for window provision, minimum floor-to-ceiling heights and minimum storage sizes (<a href="https://www.legislation.nsw.gov.au/maintop/view/inforce/epi+530+2002+cd+0+N" target="_blank">SEPP 65</a>).</p>
<p>Reforms towards “good design” pre-suppose an understanding of the future occupants of apartments and their housing needs. A recent study found “good design” is a reasonably <a href="https://researchbank.rmit.edu.au/view/rmit:28891" target="_blank">uncontroversial concept</a>: it is design that accommodates changing household comfort and needs, and contributes positively to the environment, health, wellbeing and safety.</p>
<p>A current study called the <a href="https://www.rmit.edu.au/research/research-institutes-centres-and-groups/research-centres/centre-for-urban-research/projects/current-projects/lifetime-affordable-and-tenable-city-housing/" target="_blank">LATCH Project</a> is underway to determine changing household needs and the everyday experiences of inner-city apartment dwellers, including families.</p>
<p>The research reveals the huge diversity of households – future apartment dwellers are not just single-person households and empty-nesters. They need daylight, functioning kitchen spaces, storage, nearby schools and open space. Things that currently fail to align with high-density developments across our cities.</p>
<p><em>Ralph Horne is <span style="line-height: 1.3em;">Deputy Pro Vice Chancellor, Research &amp; Innovation; Director of UNGC Cities Programme; Professor at RMIT University and Megan Nethercote is </span><span style="line-height: 1.3em;">Research Fellow at the Centre for Urban Research at RMIT University. Ralph can be contacted <a href="https://www1.rmit.edu.au/staff/ralphhorne" target="_blank">here</a>.</span></em></p>
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The vertical slums of Melbourne: Ralph Horne

<html><body><p>Australian Property Monitors (APM) has released a list of auction results in Sydney for the weekend of May 23. <a href="https://www.homepriceguide.com.au/saturday_auction_results/Sydney.pdf" target="_blank" rel="nofollow">Click here</a> for the auction results, and click on each street address to see the property's marketing.</p></body></html>

APM's Sydney auction results for May 23 weekend

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<span style="line-height: 1.3em;">In Australia’s largest auction market, Melbourne, the preliminary clearance </span><span style="line-height: 1.3em;">rate of 80% over the week to May 24 was an improvement on the previous week’s final auction </span><span style="line-height: 1.3em;">clearance rate of 78.3%.</span>
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<span style="line-height: 1.3em;">Prior to this week, Melbourne’s clearance rate </span><span style="line-height: 1.3em;">for the year to date was tracking at 77.6%, so this week’s result has </span><span style="line-height: 1.3em;">shown further improvement across an already strong market. </span>
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<span style="line-height: 1.3em;">There were 1,110 </span><span style="line-height: 1.3em;">Melbourne auctions this week, with 961 results reported so far. Over the </span><span style="line-height: 1.3em;">previous week, 1,012 Melbourne auctions were held, and a higher 1,211 were </span><span style="line-height: 1.3em;">held last year, with a clearance rate of 66.6%. </span>
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<span style="line-height: 1.3em;">This past week, the individual </span><span style="line-height: 1.3em;">sub-region of Melbourne with the strongest result was the outer east region, </span><span style="line-height: 1.3em;">where 87.3% of reported auctions were successful.</span>
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<div>The clearance rate increased in Sydney this week to 86.9%, based on <span style="line-height: 1.3em;">preliminary results, signifying that Sydney’s clearance rate of 85.0% last </span><span style="line-height: 1.3em;">week was a brief dip, after the four previous weeks where Sydney’s clearance </span><span style="line-height: 1.3em;">rate was recorded above the 87% mark.</span>
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<div>No stopping the Sydney inner west engine room, as along Sydney’s individual sub-regions, the i<span style="line-height: 1.3em;">nner west region recorded the strongest result with a preliminary clearance </span><span style="line-height: 1.3em;">rate of 94.7% across 76 results. </span>
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<span>The preliminary national auction clearance rate was recorded at 78.4%, according to the </span><span>CoreLogic RP Data weekend market summary.</span>
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<div>Both the number of auctions and the auction clearance rate were up week-on-week, a<span>cross the combined capital cities, with</span><span> data to week ending May 24.</span>
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<div>Last week auction volumes were higher than the prior week, with 2,470 capital city homes taken to auction, compared to 2,232 over the <span>previous week when the clearance rate was recorded at 77.5%. </span>
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<span>But the number of homes taken to auction was lower than </span><span>last year, when 2,786 auctions were held, with its clearance rate last year at 67.1%. </span>
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<span style="line-height: 1.3em;">Brisbane’s preliminary clearance rate across 86 results over the week to May 24 was 51.2%</span><span style="line-height: 1.3em;">, increasing from 50.0% across 136 auctions last week.</span>
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<span style="line-height: 1.3em;">At the </span><span style="line-height: 1.3em;">same time last year, Brisbane was host to 185 auctions with 49.4% of </span><span style="line-height: 1.3em;">properties recording a sale. </span>
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<span style="line-height: 1.3em;">Across the Gold Coast, 40 auction results have </span><span style="line-height: 1.3em;">been reported and based on this, the preliminary clearance rate is 35%.</span>
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<div>Across Adelaide, there were 87 auctions this week, with 65 results collected so <span style="line-height: 1.3em;">far. The preliminary clearance rate of 72.3% is higher than both last </span><span style="line-height: 1.3em;">week (63.8%) and last year (64.2%).</span>
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<div>There have been 20 Perth auction results reported so far this week with a <span style="line-height: 1.3em;">preliminary clearance rate of 25%. </span>
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<div>In Canberra over the past week, 100 auctions were held and so far, 69 results have <span style="line-height: 1.3em;">been reported with a clearance rate of 65.2%. </span>
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<div>There were 15 Tasmanian auctions held over the week. Of the 10 results <span style="line-height: 1.3em;">reported, 2 properties have sold, the </span><span style="line-height: 1.3em;">CoreLogic RP Data weekend market summary advised.</span>
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Melbourne's outer east and Sydney's inner west the capital city auction hotspots: CoreLogic RP Data

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<p>The Point Piper trophy home, Mandalay has been quietly sold.</p>
<p>Title Tattle gleans an Australian Chinese buyer has paid around $40 million plus through <span>Black Diamondz Concierge in conjunction with Bill Malouf of LJ Hooker Double Bay, who sold it 11 years ago</span>.</p>
<p><span style="line-height: 1.3em;">The sale most likely matched the nearby mooted $41 million paid for the Villa del Mare trophy mansion earlier this month.</span></p>
<p>The Wolseley Road-Wentworth Place, Mandalay was sold by the former US tobacco executive, Bill Webb and his wife Marijke having<span style="line-height: 1.3em;"> traded in 2004 for $20 million. They have been mostly Melbourne based. </span></p>
<p><span style="line-height: 1.3em;">It had previously traded when businessman Kerry Manolas and his wife, Patricia paid $440,000 for it back in 1978.</span></p>
<p><a href="https://www.realestateview.com.au/Real-Estate/87-89-wolseley-road-enter-via-1-wentworth-pl-point-piper/Property-Details-buy-residential-8358242" target="_blank">It was built in 1954</a> for General Motors dealer Bill Stack.</p>
<p>The non waterfront hilltop home with <span>the massive 80 mere frontage to Wolseley Road </span>was redesigned in 1994 by architect Michael Suttor, with interiors by Michael Love<span style="line-height: 1.3em;">.</span></p>
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<p class="property-title">It was marketed as "Mandalay - Sophistication, Elegance and Grandeur."</p>
<p id="property-description">"A spectacular family residence, Mandalay is positioned to capture breathtaking, views of Sydney's magnificent harbour, bridge and Opera House. <br><br>"This sophisticated three-level, 900 square metre, European-style villa is set on nearly 1,891 square metres of manicured grounds and presents opulence at every turn."</p>
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<div id="link-photo"><a class="photobox cboxElement" href="https://www.realestateview.com.au/portal/viewphotos?OID=8358242&amp;popup=photos&amp;photo=3" title="87-89 Wolseley Road (enter via 1 Wentworth Pl)  Point Piper NSW 2027 House - Photo 3"><img src="https://images.realestateview.com.au/pics/242/87-89-Wolseley-Road-enter-via-1-Wentworth-Pl-Point-Piper-NSW-2027-Real-Estate-photo-3-large-8358242.jpg" alt="87-89 Wolseley Road (enter via 1 Wentworth Pl)  Point Piper NSW 2027 Real Estate Photo 3" title="87-89 Wolseley Road (enter via 1 Wentworth Pl)  Point Piper NSW 2027 House - Photo 3"></a></div>
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<p><span style="line-height: 1.3em;">The unconfirmed $40 million plus sale is the highest to date in 2015, however the non-waterfront record holder, Villa del Mare did resell privately earlier this month to Pyrmont resident, Lola Wang Li in an off-market transfer expected to be confirmed at a face saving $41 million.</span></p>
<p><span style="line-height: 1.3em;"><span>Most of the prospected Mandalay buyers were significant investor visa (SIV) holders.</span></span></p>
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Hillside Mandalay, Point Piper sells as Sydney's highest non-harbourfront

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<p><span>Property fund manager, Vantage Property Investments, has raised $17.6 million on an overall passing yield of 7.4% for three Victorian industrial assets in separate deals negotiated by Savills Australia in conjunction with CBRE.</span></p>
<p><span>The properties at Epping, Keysborough and Notting Hill, comprising four buildings – office/warehouses and showrooms - totalling 10,421 square metres on 23,475 square metres of land, were sold subject to five to ten year leases with an average WALE of 5.4 years and a combined rental income of $1.318 million.</span></p>
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Vantage raises $17.6m with industrial portfolio sale

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<p><strong>GUEST OBSERVER</strong></p>
<p>With interest rates at record lows, investors have flooded the market wanting to take advantage of lower rates, particularly those who can’t afford to buy to live, are buying cheaper properties as an investment. </p>
<p><span style="line-height: 1.3em;">But what if you don’t have a hefty deposit?</span></p>
<p><span style="line-height: 1.3em;">Most banks need borrowers to have at least a 10% deposit for the property, which means your deposit could be as low as $27,000 if you want to buy an apartment in Hobart or as high as $85,000 if you want to buy a house in Sydney (based on latest median property prices from CoreLogic RPData). </span></p>
<p><span style="line-height: 1.3em;">My advice is that it’s never too early to start thinking about investing and the first thing to do is start saving – you don’t need an investment plan – just get saving. Not only is it building up your deposit but it’s a good look when you go to apply for a loan. Banks like to see a solid history of saving as well as paying bills on time, etc. </span></p>
<p><span style="line-height: 1.3em;">If you want a more affordable investment property, perhaps it’s best to look outside your own capital city or in outlying suburbs.  Research suburbs which are under development or new land allocations where good deals could be found for newly built homes. </span></p>
<p><span style="line-height: 1.3em;">Apartments are often the most affordable way to get onto the property ladder. Plus, you can always progress to investing in a free-standing house, down the track.</span></p>
<p><span style="line-height: 1.3em;">Investing in a suburb with good transport links and infrastructure, schools and shopping facilities will always be an advantage – even if it’s a new suburb. Look for suburbs next to those experiencing a boom, that’s where the bargains will still be found. </span><span style="line-height: 1.3em;"> </span></p>
<p>Investors often think they’ll get guaranteed good returns, but it’s not without risks. Investing can be a drain on your finances when you have to maintain the property, take out landlord’s insurance and pay capital gains tax, but it has its benefits too. </p>
<p><strong style="line-height: 1.3em;">Downsides of having a small deposit:</strong></p>
<ul>
<li>Banks can be a lot tougher with their lending requirements if you only have a small deposit </li>
<li>Unless you have a 20% deposit, you’ll need to pay mortgage insurance - which can be in the tens of thousands of dollars </li>
<li>It can make it harder to refinance down the track - you may be stuck with your loan for longer</li>
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<p><em><span>STEVE JOVCEVSKI</span> is a property investment and h</em><em>ome loan negotiator at </em><em><a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">Mozo.com.au</a>.</em></p>
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How to invest with a low deposit: Mozo's Steve Jovcevski

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<p><strong><span style="line-height: 1.3em;">GUEST OBSERVER</span></strong></p>
<p><span style="line-height: 1.3em;">The Reserve Bank of Australia’s latest Statement on Monetary Policy (May 2015) referenced unique data from Charter Keck Cramer and the National Land Survey Program (NLSP) to highlight imbalances between the strength of purchaser demand and scarcity of developable land supply in capital city greenfield land markets.</span></p>
<p>The land markets are a critical input into the housing industry and with the decline in the mining sector, investment in new housing is becoming increasingly relied upon to support the domestic economy’s growth. <span style="line-height: 1.3em;">This land market imbalance is also causing localised lot price pressures, especially in Sydney, and will ultimately impact opportunities for dwelling investment and undermine potential growth in the domestic economy.</span></p>
<p>New housing supply is clearly being supported by historically low interest rates and is further evidenced by the NLSP’s observation of 50,000 lot sales in the year ending March 2015 across the capital cities, which is at peak levels and will to continue to drive high levels of new housing construction.</p>
<p>New housing supply across Australia is also being underpinned by historic high levels of new apartment supply. Charter’s unique insight into the Core apartment markets of the capital cities highlights that there are currently 98,000 apartments under construction or being marketed.</p>
<p><img src="/images/2015/05/19/700_Papaleo.jpg" alt="" width="715" height="467" style="line-height: 1.3em;"></p>
<p><span><em>Robert Papaleo is National Executive Director of market intelligence firm Charter Keck Cramer. He can be contacted </em><a href="https://charterkc.com.au/people/robert-papaleo/" target="_blank"><span><em>here</em></span></a><em>.</em></span></p>
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Land market imbalance causing localised price pressures: Robert Papaleo

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<p><span>Where problems are perceived to exist with the SMSF sector, its important policy decisions are based on reality and hard facts, not ideology and hearsay.</span></p>
<p><span>The seemingly inexorable rise of self-managed funds is the most striking dynamic of Australia's superannuation system. More so because the rise of self-managed superannuation has been driven by the choice and determination of individuals rather than by government policy direction.</span></p>
<p><span>Self-managed funds are the only funds realising the vision set for Australia's superannuation system – to enable people to make themselves financially independent in retirement and avoid reliance on the age pension.</span></p>
<p><span>Generally SMSF members are achieving this goal while the members of the large industry and retail funds are not. The average balance in a self-managed fund account is over $500,000 compared with average account balances in industry and retail funds of less than $30,000.</span></p>
<p><span>The higher balances in SMSFs result from people maximising their concessional and non-concessional contributions and from the returns generated by their assets. Yet self-managed superannuation is not just for those paid higher. ATO statistics show that 66 per cent of SMSF members are on incomes of less than $80,000.</span></p>
<p><span>One important outcome of self-managed superannuation is enabling a generation of Australians to fund their retirement and old age within their own lifetime, instead of leaving a pension tab on the table for the next generation to pick up.</span></p>
<p><span>The fact that a million Australians, with more joining every day, are willing and capable of taking charge of their retirement savings, and doing a good job of it, is to be applauded.</span></p>
<p><span>However, it seems success breeds envy and draws criticism.</span></p>
<p><span>You'll hear it said that self-managed funds are driving up property values, distorting capital allocation, investing too conservatively, investing recklessly, straining the Budget, getting an unfair tax advantage and are costly to run.</span></p>
<p><span>We challenge each of these claims as they are often driven by ideology, or self-interest or are just plain wrong.</span></p>
<p><span>Take the claim that SMSFs are used to gain an unfair tax advantage.</span></p>
<p><span>Members of self-managed funds are subject to exactly the same tax rules as members of pooled super funds.</span></p>
<p><span>Critics are quick to point out the top 20% of income earners get the lion's share of super tax concessions but they don't always acknowledge that the top 20% also pay the lion's share of income tax. They get 57% of the tax concession but pay 64% of income tax. So, as you would expect, the value of their super tax break is proportionate to the amount of tax they pay, and actually a bit lower.</span></p>
<p><span>Or take the claim that super tax concessions are an unsustainable drain on the Budget.</span></p>
<p><span>Tax incentives to save for retirement are sensible policy because in the long run it's cheaper than paying out the age pension. If super tax incentives are reduced, less will be saved, fewer people will be financially independent and more will have to rely on a full or part taxpayer-funded pension.</span></p>
<p><span>Are SMSFs too costly to run? It's true that a relatively low account balance in a self-managed fund will cost more to administer than one held in a pooled super fund. But above around $100,000, costs are comparable or much lower. Two-thirds of self-managed funds have an operating expense ratio to assets of less than 1% and 40% have an expense ratio of less than 0.25%.</span></p>
<p><span>It’s not just about cost. The main reason people set up self-managed funds is to take control of their savings and more are doing so relatively early in their working lives. They make a commitment to save and as they build their assets, the relative cost of running their fund comes down. They are being helped by the emergence of a range of low-cost, online fund management service providers.</span></p>
<p><span>The real cost issue in superannuation is the fees charged by the large industry and retail pooled super funds, which are estimated to have consumed a quarter of these funds' returns in the past decade, a cost borne by their members.</span></p>
<p><span>Another common criticism of SMSFs is that they drive up property prices through highly leveraged investment. But no hard evidence is presented to back up this claim. Very low interest rates and an inadequate supply of new housing is likely fuelling property prices more. SMSFs actually put quite a small proportion of their assets into residential property – around 3.5% and this has been steady for five years. They put three times as much into commercial property, often linked to the owners' business.</span></p>
<p><span>Some people, on dubious advice, may be starting an SMSF to borrow to buy a residential property. Having one highly leveraged asset is clearly not a sensible strategy. To the extent that it is occurring it should be managed through better advice, credit restraint by lenders and regulation of property promoters.</span></p>
<p>In pondering the report of <a href="/guides/smsfs-to-rush-further-into-property-after-borrowing-ban-looms-following-murray-financial-system-inquiry">David Murray's Financial System Inquiry</a> and, in due course, the forthcoming tax white paper, the government should reflect on the singular success of self-managed funds in achieving the objectives of the superannuation system, appreciate the motivation of people who set them up and recognise the social and economic benefits they deliver.</p>
<p><em>Duncan Fairweather is executive director of the SMSF Owners' Alliance. Contact him <a href="https://www.smsfoa.org.au/contact" target="_blank">here</a>.</em></p>
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Are SMSF’s causing property values to increase and receiving an unfair tax advantage? Duncan Fairweather

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<p>Melbourne currently has ten thousand more homes on the market than Sydney as Sydney listings slide 21.4% when compared to last year, according to new figures released from CoreLogic RP Data.</p>
<p>Melbourne has 28,726 homes for sale as of the week ending May 17, a decline of 10.2% annually.</p>
<p>Sydney has suffered a 21.4% decline in home listings since 2014, with 17,173 homes currently on the market.</p>
<p><span style="line-height: 1.3em;"><img src="/images/2015/05/18/Screen%20Shot%202015-05-18%20at%201.53.56%20PM.png" alt="" width="674" height="396"></span></p>
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<p><img src="/images/2015/05/18/Screen%20Shot%202015-05-18%20at%201.54.05%20PM.png" alt="" width="649" height="281"></p>
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May new Sydney listings slide, Melbourne holds strong: CoreLogic RP Data

<p>The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.</p>

<p>Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.</p>

<p>The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.</p>

<p>The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.</p>

<p>Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.</p>

<p>The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.</p>

<p>The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.</p>

<p>Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.</p>

<p>Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.</p>

<p data-end="345" data-start="110">The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.</p>

<p data-end="689" data-start="347">Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.</p>

<p data-end="689" data-start="347">Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.</p>


Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

<p>Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.</p>

<p>The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.</p>

<p>The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.</p>

<p>The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" /></p>

<p>SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.</p>

<p>“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.</p>

<p>The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.</p>

<p>“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" /></p>

<p>The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.</p>

<p>Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.</p>

<p>The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.</p>

<p>COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" /></p>

<p>“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.</p>

<p>The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.</p>

<p>The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.</p>

<p>Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a></em></p>


First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<p><a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.</p>

<p>The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.</p>

<p>The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.</p>

<p>SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”</p>

<p>The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" /></p>

<p>The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.</p>

<p>A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.</p>

<p>Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" /></p>

<p>The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.</p>

<p>Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.</p>

<p>The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.</p>


First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

<p>Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;</p>

<p>Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;</p>

<p>The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;</p>

<p>The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;</p>

<p>Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;</p>

<p>Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;</p>

<p>“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;</p>

<p>“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."</p>

<p>Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;</p>

<p>"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;</p>


Bottega House secures landmark riverfront site in St Lucia 

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<p data-end="157" data-start="0">The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.</p>

<p data-end="459" data-start="159"><a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.</p>

<p data-end="459" data-start="159">[smartcode_project:default project_id=112661 project_image_fid=359603]</p>

<p data-end="651" data-start="461"><a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.</p>

<p data-end="950" data-start="653">Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.</p>

<p data-end="1081" data-start="952">“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.</p>

<p data-end="1081" data-start="952">[smartcode_project:default project_id=112661 project_image_fid=355935]</p>

<p data-end="1307" data-start="1083">Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.</p>

<p data-end="1522" data-start="1309">The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.</p>

<p data-end="1522" data-start="1309">[smartcode_project:default project_id=112661 project_image_fid=361052]</p>

<p data-end="1714" data-start="1524">Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.</p>

<p data-end="1945" data-start="1716">The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.</p>

<p data-end="1945" data-start="1716">[smartcode_project:default project_id=112661 project_image_fid=359607]</p>

<p data-end="2220" data-is-last-node="" data-is-only-node="" data-start="1947">More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.</p>
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<p>[smartcode_project_cta:default project_id=112661]</p>


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