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The calendar year 2016 marked another year of strong performance in property investment markets, according to Savills’ latest report.
In Australia, Savills recorded approximately $27 billion worth of commercial property transactions in the  12 months to December 2016, down from $33.74 billion in the previous year, but much the same as the five year average ($25.6 billion).
A lack of portfolios and a diminishing supply of prime properties for sale continues to weigh on investment volumes.
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Foreign investors were the most active in the investment market in 2016, purchasing 40 percent of stock reported sold or approximately $10.7 billion.
Professional investors, represented by Trusts, Funds and Syndicates, purchased a total of $8.75 billion of commercial property.
Both buyer groups remain keenly interested with ongoing appetite for commercial property investment.
A slowdown in resource demand from China, a reversal of commodity prices and the end of the mining investment boom (coupled with the GFC) saw interest rates in Australia fall to historic lows.
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A subsequent pickup in occupier and investment demand in Melbourne and Sydney followed whilst there was a substantial reversal in fortunes in Brisbane and Perth. Whilst Brisbane has stabilised,
Perth continues to be challenged (more office supply is in the pipeline), Melbourne is meeting both occupier and investment demand with a supply response whilst Sydney remains challenged on the supply front.
An added difficulty in both Melbourne and Sydney is the continual withdrawal of office space and development sites (both in CBD and non-CBD office markets) for conversion to residential or compulsory acquisition for public works.
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Capital markets exhibited greater degrees of volatility throughout 2016 and have finished the year stronger with the ASX200 rising 9 percent over the last six months, the Australian dollar ended up largely unchanged against the US dollar and 10 year bonds yields softened by 90 basis points to approximately 2.9%.
Commercial property investment yields continued to firm across the board (by an average 20 basis points) – a theme we have been writing about for several years now.
Whilst the “bond yield” story has run its course, in some markets, fundamentals are improving rapidly.
“We believe this improvement will lead to further tightening in yields as investment capital starts to price in expectations of future NOI growth. This part of the yield cycle is just beginning,” the report stated.
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j.ballantyne1990-6AQqhLzZaK

Strong performance in the Australian 2016 commercial property market: Savills

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A block of 30 apartments located in Sydney's northern suburb of Forestville is on the market.
The block, 781 Warringah Road, Forestville is newly built and has three levels with a basement car park.
Andy Hu, Knight Frank’s director of Asian markets, the property is a high-quality and modern, block of apartments, constructed just one year ago.
“781 Warringah Road presents a strong net passing income of approximately $733,000 per annum with a staggered lease expiry profile, ensuring security of income," he said.
"The property has enjoyed a history of strong occupation, as each apartment is self-contained and fully-furnished with a bathroom, kitchen, stainless steel appliances, air conditioning, flat screen TV and bed.
The majority of the apartments have balconies, with basement car parking available.”
The property is up for sale through expressions of interest closing at 4pm on 30 March 2017.
 
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Block of 30 apartments on market in Forestville

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The first key new housing update for 2017 provides a softer update, says the Housing Industry Association.
“The HIA New Homes Sales Report – a survey of Australia’s largest home builders showed a moderate decline of 2.2 percent in January 2017,” said HIA Chief Economist, Dr Harley Dale.
“This weaker update does follow a relatively decent run home for new home sales in late 2016.
Given that Australia is tailing off from the largest and longest new home building cycle in history, both the total and sub-component profiles for new home sales are still in very good shape,” said Harley Dale.
“There aren’t many sectors punching above their weight in the nation’s economy right now, so the profile for new home sales is also good news for Australia as a whole.
HIA’s latest forecasts for new dwelling commencements will be released on Thursday and they will paint a healthy short term picture for residential construction.
There is nothing to be seen in this latest update for new home sales or from any other recent leading indicator results to deter us from this outlook,” concluded Harley Dale.
The January 2017 update for the HIA’s monthly New Home Sales survey reveals a decline of 1.5 percent in detached house sales following a similar fall of 1.6 percent in December last year.
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Detached house sales fell by a very modest 1.1 percent over the three months to January 2017 to be down by 4.0 percent when compared to the same period 12 months previously.
The sale of ‘multi-units’ dropped by 4.3 percent in January following an increase of 6.4 percent in December 2016.
Over the three months to January 2017 multi-unit sales increased by 4.8 percent to a level 9.0 percent higher than the comparable period a year earlier.
Seasonally adjusted new detached house sales increased by 12.1 percent in Western Australia in January 2017 following a sharp dip of 9.1 percent last December.
In the month of January 2017 detached house sales fell by 6.8 percent in New South Wales, 4.1 percent in Victoria, 2.0 percent in Queensland, and 1.4 percent in South Australia.
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Soft start for new home sales: HIA

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The new year began on a strong footing with capital city clearance rates at auctions generally tracking in the high 70% to mid-80% range from week to week, according to CoreLogic’s latest report.
The property data firm says the results of ‘Super Saturday’ last week saw an unprecedented number of auctions for February; clearance rates reached a new high for 2017 despite the large number of auctions held.
Advertised listing numbers remain low across the hottest housing markets, with total residential advertised listings in Sydney tracking 11.3% lower than the same period a year ago, Melbourne total listings are 5.1% lower than last year, Hobart listings are down by 35% and Canberra advertised stock levels are 6.2% lower than a year ago.
CoreLogic head of research Tim Lawless said, “Low levels of advertised stock for sale at a time when buyer demand remains strong is creating a sense of urgency among buyers, which is adding to the upward pressure on prices.
"This helps to explain why clearance rates are so high, and private treaty sales are so rapid across the strongest markets.”
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Overall, the latest results from the CoreLogic Hedonic Index highlights the performance diversity across Australia’s housing market, he added.
"The continuation of the capital gains rebound is likely to create further discomfort among policy makers, particularly in light of the growing debate around affordability and the high level of demand from investors.”
“I remain of the view that housing market conditions will moderate during 2017 due to affordability constraints impacting on housing demand, as well as higher supply levels and an eventual slowing of investment demand brought about either through changed policies from Australian lenders or via regulatory changes aimed at slowing credit growth across the investment sector.”
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2017 auctions start off with a strong footing: CoreLogic

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UK-based advisory firm Oxford Economics has acquired a controlling stake in leading Australian analytics and forecasting firm BIS Shrapnel for an undisclosed sum, which the former says will make it the largest independent economics research firm in the world. 
The new organisation will be named BIS Oxford Economics and will see the merger of BIS Shrapnel  with the Australian arm of Oxford Economics. BIS Shrapnel generally focuses on the building, construction, property and mining sectors.
“This investment by Oxford Economics sees the merging of BIS Shrapnel’s deep knowledge of the Australian and New Zealand economies with Oxford Economics’ detailed understanding of the global economy,” said Robert Mellor, managing director, BIS Oxford Economics.
The new firm will be better able to assess market trends and quantify the impacts for its clients at the global, national and city levels, said a media release.
“The acquisition brings together Oxford Economics’ rigorous global modelling and analytical framework with BIS Shrapnel’ expertise across the Australian economy, in particular in forecasting investment cycles,” said Adrian Cooper, chief executive officer and chief economist, Oxford Economics.
“This agreement expands the Oxford Economics Group to more than 300 staff globally, making it the largest independent economics research firm in the world, and allows us to support our clients in understanding economic trends and their impacts both domestically and globally.”
Highlighting this, Mellor added that “major political, social and economic events in nations abroad have profound global impacts – look no further than Brexit or Trump”.
The new entity will operate from BIS Shrapnel’s existing offices in Australia. Robert Mellor will lead BIS Oxford Economics, with Dr Frank Gelber to remain Chief Economist and Director.
All of BIS Shrapnel's staff will be retained.
 
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Oxford Economics buys controlling stake in forecaster BIS Shrapnel

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The latest results take the current housing growth cycle into its 58th month, according to CoreLogic’s latest report.
The property data firm says that since capital city dwelling values started to rise in June 2012, dwelling values have increased by a cumulative 47.3 percent, ranging from a 74.9 percent capital gain in Sydney, to a net rise of 6.0 percent in Perth.
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Sydney, and to a lesser extent, Melbourne, have remained at the top of the capital gain tables over the past two cycles.
Since the beginning of 2009, Sydney dwelling values have more than doubled, rising by 104.5 percent while Melbourne values are 87.7 percent higher.
The next best performing capital city over the same period was Canberra where dwelling values have risen by a comparatively modest 37.4 percent.
Mr Lawless said the strong growth conditions across Sydney have provided a substantial wealth boost for home owners, "however, the flipside is that housing costs are becoming increasingly out of reach.
"This is especially true for price-sensitive segments of the market such as first time buyers and low income families.”
“Affordability challenges are most pronounced across the Sydney housing market where, based on September 2016 data, dwelling prices are almost 8.5 times higher than gross household incomes.
The second most expensive capital city, Melbourne, has a dwelling price to income ratio of 7.1.”
In contrast, the February results show that the cities with greater exposure to the mining downturn have continued to record weak housing market results.
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Dwelling values slipped lower in Perth and Darwin over the month, taking the cumulative decline in values since these markets peaked in 2014 to 10.0 percent and 11.5 percent respectively.
Brisbane also recorded a fall in dwelling values over the month, however values have been slowly trending higher despite the negative monthly result.
As a consequence, housing affordability has shown a marked improvement in these regions, with the dwelling price to income ratio tracking at 5.7 in Brisbane, 5.5 in Perth and 4.5 in Darwin based on September 2016 data.
While dwelling values continued to rise, weekly rents remained comparatively soft. As a result, downward pressure has been placed on rental yields.
The average dwelling yield across the combined capital cities fell to 3.2 percent over the month, which is a new record low.
Five years ago, the average capital city yield was a full percentage point higher at 4.2 percent.
Sydney has shown the most significant compression in rental yields over the past five years, with the average gross yield reducing by 150 basis points to reach 2.9 percent (2.7 percent for houses and 3.7 percent for units).
Mr Lawless said despite the record low rental yields on offer, investor demand remains high, suggesting investors are likely to be relying on a negative gearing strategy to compensate for their cash flow losses.
"It also indicates that investors are speculating on future capital gains.”
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“The latest housing finance data from the Australian Bureau of Statistics indicates that investors comprise approximately 57 percent of new mortgage demand across New South Wales (excluding refinanced loans).
This is substantially higher than the long run average, which is slightly above one third.”
Commenting overall on the February results, Mr Lawless said, “The renewed strength in the housing market is corroborated by a range of other data points such as auction results, low advertised stock levels and rapid selling times.”
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Investors speculating growth will continue as Sydney hits 104 percent spike since GFC: CoreLogic

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The annual growth trend in capital city dwelling values reached a new cyclical high with an increase of 11.7 percent over the twelve months ending February 2017, according to CoreLogic’s latest report.
The property data firm says that the monthly CoreLogic Hedonic Home Value Index reported a further rise in the value of capital city dwellings in February, with values rising 1.4 percent over the month.
The strong capital gain over February was led by Canberra (+3.2 percent) and Sydney (+2.6 percent), with Melbourne (+1.5 percent) and Hobart (+1.0 percent) also returning significant increases.
In contrast, dwelling values were down over the month across Darwin (-4.3 percent), Perth (-2.4 percent) and Brisbane (-0.4 percent).
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Tim Lawless, CoreLogic head of research, said prior to capital gains accelerating half way through last year, the growth trend had been moderating, reaching a cyclical low point over the twelve months ended July 2016 when the annual change in capital city dwelling values slowed to 6.1 percent.
He said the February results mark "a new high point in the current growth cycle," with capital city dwelling values increasing by 11.7 percent over the past twelve months.
“The annual growth rate across the combined capitals hasn’t been this strong since the twelve months ending June 2010," he said.
“In Sydney, where the annual rate of growth is now 18.4 percent, this is the highest annual growth rate since the twelve months ending December 2002 when the housing boom of the early 2000’s started to slow.”
Canberra had the highest February price growth.
At around the median price of $635,000 a four bedroom house at <a href="https://www.realestate.com.au/sold/property-house-act-amaroo-124657490" target="_blank">11 Cooloola Street</a>, Amaroo (below) was sold last week for $635,000.
Similarly a three bedroom house at<a href="https://www.realestate.com.au/sold/property-house-act-kambah-124457326" target="_blank"> 8 Sholl Place</a>, Kambah (above) was sold yesterday for $609,000. It last sold for $439,000 in 2004.
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At around the median price of $405,000 a two bedroom unit at <a href="https://www.realestate.com.au/sold/property-apartment-act-watson-124626206" target="_blank">49/23 Aspinall Street</a>, Watson (below) was sold last week for $401,500. It last sold for $165,000 in 2008.
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Similarly a two bedroom house at <a href="https://www.realestate.com.au/sold/property-apartment-act-belconnen-124227770" target="_blank">309/80 Chandler Street</a>, Belconnen (below) was sold two week ago for $402,000.
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New high point in national property price growth cycle: CoreLogic's Tim Lawless

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A classic beach house on the Sunshine Coast has been snapped up by a local buyer for $4 million.
The 3 Wilson Avenue property at Caloundra’s Dicky Beach comprises four bedrooms and is set on a 1,249 sqm site over two adjoining lots. It was sold after 33 years of ownership.
The elevated position combines sweeping views north to Point Cartwright and south to Moffat Beach with beachfront access.
The marketing campaign was conducted by Peter Neale of Savills Residential.
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Neale said Wilson Avenue at Dicky Beach is among the most tightly held of all beachfront addresses on the Sunshine Coast.
“These types of properties just don’t come to market very often,” he said.
“The established beach house provides a relaxed setting to enjoy the prime beachfront location and lifestyle with four bedrooms, three bathrooms, two living areas and an expansive deck running along the back of the house to enjoy the amazing ocean views and sea breezes,” he said.
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Sunshine Coast beachfront property nets $4 million sale

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A townhouse development on the historic former Hawkins Garden Centre site at Albany Creek in Brisbane’s north has been launched by Unison Projects.
Construction has started on the 74 townhouse project at 623 Albany Creek Road, Albany Creek.
Unison Projects’ Matt O’Driscoll said the $37 million estate spread on 3.2 ha has been named Preston Point, chosen after a competition among Albany Creek State High School students who were invited to suggest a name. 
“There were many entries with lots of brilliant ideas but the successful entry came from students Madalyn Martin, Kirra Young and Stephanie McBean,” O’Driscoll said.
“Their inspiration came from the history of the parcel of land.  It was originally purchased on 1 December 1865 by John Preston. The girls won $100 each.” 
The Preston Point Residences offers a creekside urban retreat. Features include a swimming pool with wrap around deck, BBQ area, fire pit, bocce court, communal vegetable garden and a lawn.
The townhouses come in two, three and four-bedroom designs, all featuring 2.5 bathrooms and two car garage. 
“With 18 varieties of terrace designs and numerous facades to choose from, there’s a new home to suit all tastes,” O’Driscoll said.
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Townhouse project commences on former garden centre site near Brisbane CBD

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The infrastructure executive, Netflow managing director Phil Dreaver has bought the Towers Road, Toorak mansion from rich listers Daniel and Danielle Besen.

The New Zealand-born Dreaver has been with one of Australia’s most successful infrastructure investors since 2005. Plenary and Cintra have recently combined to create a joint venture business, Netflow to compete in the Australia and New Zealand road infrastructure market.

As the chief investment officer for Plenary Australia, the 2005 founding director of Plenary Group North America relocated to Australia in 2015.

He had previously worked as a director in ABN AMRO Bank's Infrastructure Capital Group in Sydney, Toronto and Vancouver.

The $26.25 million deal, reported by The Australian, set Melbourne’s record residential price, bettering the $24.1 million set in July 2015 when Tony and Jennifer Smorgon sold their Robertson Street, Toorak home.

Daniel and Danielle Besen, who reportedly separated last year, are members of the billionaire family which founded retail chain Sussan.

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="2"><img alt="The Wood Marsh-designed home was marketed as representing the pinnacle of modern residential design." height="366" src="https://cdn.newsapi.com.au/image/v1/1f40a3ee60b9c0a40162bfe630a93768" width="650"></div>

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="2"> </div>

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="2">The Wood Marsh-designed home, marketed as representing the pinnacle of modern residential design, was never occupied by the Besen’s.</div>

The Besen’s put the Towers Road property on the market in October through Marshall White director Marcus Chiminello.

The property is set on a 2300 square metre block.

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="3"><img alt="The home has four bedrooms and five bathrooms." height="366" src="https://cdn.newsapi.com.au/image/v1/96d0b8b8157b8aa4afc206876118dc0c" width="650"></div>

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="3"> </div>

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="3">Dreaver recently confirmed that Sydney’s WestConnex was a significant opportunity for the new business and would attract Netflow’s initial focus.</div>

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="3"> </div>

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="3">Plenary Group is an independent, long-term investor, developer and manager of public infrastructure with 41 projects worth more than A$29 billion across Australia, Canada and the US.</div>

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="3"> </div>

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="3">Plenary is currently developing some of Australia’s largest transport projects including the A$1.6 billion Toowoomba Second Range Crossing, the A$3.7 billion Sydney Metro Northwest and the A$2 billion High Capacity Metro Trains project in Melbourne.</div>

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="3"> </div>

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="3">Related Projects:</div>

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="3">[smartcode_project:default project_id=600]</div>

<div class="story-image secondary-asset landscape zoomable zoom-on" data-pswp-uid="3">[smartcode_project:default project_id=4807]</div>
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Toorak record price paid by Plenary's Phil Dreaver

Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Staff reporter

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