Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

[smartcode_project:default project_id=145324 project_image_fid=372749]

Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

[smartcode_project:default project_id=145324 project_image_fid=354343]

The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

[smartcode_project:default project_id=145324 project_image_fid=354347]

According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

Joel Robinson

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

[smartcode_project:default project_id=152069 project_image_fid=374394]

Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

[smartcode_project:default project_id=152069 project_image_fid=374399]

Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

<html><body>
Two strata property on Melbourne’s pedestrian thoroughfare, The Causeway have been sold.
They were sold "under very competitive conditions," according to Fitzroys agent Charles Emmett.
Shop 5, a 45 square metre retail premises leased to Gordon’s Café (pictured below left), sold for $1.51 million, some $460,000 above reserve.
Returning $67,700 per annum net, the sale price reflected a yield of 4.48%.
<img height="153" width="235" src="/images/stories/2013/08/laneway-aug-21-one-2.jpg" alt="laneway-aug-21-one-2"><img height="157" width="235" src="/images/stories/2013/08/laneway-aug-21-two-2.jpg" alt="laneway-aug-21-two-2" style="font-size: 0.8em;">
The partially fitted Basement (pictured above right), with an area of 204 square metres approx and without “retail access”, sold for $675,000 plus GST.
 
</body></html>

jchancellor-FAypfDUnLy

The Causeway, Melbourne strata offerings sell

<html><body>
Endeavour Hills Shopping Centre has secured two new tenants and re-signed a further 10 national operators as part of an overhaul of the centre’s retail mix.
The two new tenants were Snap Fitness, which signed a 321 square metre lease and Bank of Melbourne, which took 212 square metres in the centre.
Both leases were negotiated by Colliers International leasing agent, Mike Crittenden.
In the past six months, Wespac, Commonwealth Bank,  Priceline, Millers, Sussan, EB Games, Suzanne Grae, Tenderfresh Meats, Flight Centre and ANZ have all renewed there leases in the centre.
Recent rentals achieved have ranged from $750-$1,800 per square metre, said Mr Crittenden.
“Our focus has been on renewing quality tenants as well as improving the centre by securing additional offerings not previously represented in the centre,” he said.
Located 30km south-east of the Melbourne CBD, the Endeavour Hills Shopping Centre, comprises a variety of retail spaces, totaling about 36,000 square metres. Among the 86 retailers in the centre are Woolworths, Coles, Aldi, Dan Murphy and a Big W.
“We are still on the look-out for more high-quality retail, fresh food, fast food and service-based operators to complement the existing strong tenancy mix for the remaining tenancies," said Mr Crittenden.</body></html>

kjiminez-eaYKfU7qd2

Endeavour Hills Shopping Centre overhaul continues, securing two new tenants

<html><body>
Sydney, Melbourne and Brisbane have maintained their ranking among the world's most expensive cities for global retailers, despite a backdrop of flat retail turnover figures and a weak domestic economic environment.
The three Australian cities all featured in CBRE Group's top 10 quarterly rankings, which was topped by Hong Kong with prime rents at US$4,328 per square feet per annum, followed by New York.
<img alt="record-retail-rents-charts" height="425" width="470" src="/images/stories/2013/08/record-retail-rents-charts.jpg">
Prime rents in Sydney, which was fifth in the rankings, came in at US$945 per square feet. Prime rents in Melbourne were $794 per square feet and in Brisbane  were $599 per square feet, the CBRE research showed.
Josh Loudoun, CBRE senior director of Retail Services Australia, said the Australian cities combined were tracking at a "steady growth" rate, but that the results varied from city to city. Prime rents in Sydney, he said had fallen, whilst in Brisbane rents had accelerated strongly and Melbourne had experienced steady growth.
Nervertheless, he said the overall results  highlighted that Australia was showing steady growth at a time when the retail sector is in the doldrums.
Driving the local results , said Mr Loudoun, was the "limited number of new leases being signed as landlords have been more inclined to leave tenants on hold over or short term leases at the lease expiry, instead of putting the property to the market and crystallising a downgrade.”
However, he also said, Australia had continued to benefit from low vacancy rates and the limited new supply coming to the market, along with the influx of international retailers to our local shores.
US fashion label Brooks Brothers and UK retailer Marks &amp; Spencer have recently announced they will be entering the Australian market.
Another consideration he points to is the upcoming Federal election.
"History shows that retail sales following a federal election usually show a strong short-term spike as consumer confidence lifts and this will translate to rental growth over the next 12 months. This will also coincide with a number of the ‘boom time’ leases of 2008/2009 coming up for their five year anniversary," said Mr Loudoun.
CBRE said that the top 10 prime global retail markets saw little change relative to previous quarters, however, four of the top 10 markets - New York, London, Zurich and Tokyo - saw quarterly increases in prime retail rents, compared with only one market during the previous quarter.
</body></html>

Australian cities among the most expensive for global retailers: CBRE

<html><body>
If ever there was a reason for property investors to be looking at the Sydney suburban office market for investment opportunities, it is now, according to Jones Lang LaSalle.
Based on its analysis of the nine key suburban office markets - Sydney Fringe, South Sydney, North Sydney, Chatswood, St Leonards, Parramatta, Macquarie Park, Norwest and Homebush/Rhodes - JLL found that the combined commercial footprint stood at 4.39 million square metres and the value was $19.5 billion, incorporating 190 A-grade assets.
<img height="224" width="470" src="/images/stories/2013/08/chart-of-the-week-aug-21.jpg" alt="chart-of-the-week-aug-21">
Source: Jones Lang LaSalle
There was "significant depth" in Sydney's non-core office market, said JLL research analyst Leighton Waugh.
Specifically, he said there are four fundamental criteria that support the argument for investment in the non-CBD office markets - tenant demand and vacancy levels, rental growth, incentive levels and the yield spread between CBD and non-CBD markets.
"Tenant demand for suburban office space has been buoyant in the 12 months to June 2013, with gross take up totaling 140,700 square metres,'' he said.
And while prime net absorption was a modest 2,000 square metres over the same period, he made a point of saying that the Sydney CBD prime office market recorded negative net absorption of 20,700 square metres.
Of the nine suburban markets, JLL said demand was highest in Homebush/Rhodes, Macquarie Park and Parramatta ,which recorded positive net absorption of 47,300 square metres in the 12 months to June 30. North Sydney, Sydney Fringe and Sydney South reported negative net absorption of 81,400 sqm.
"The number of tenant briefs for space has increased in the majority of the suburban markets as prospective tenants look to take advantage of the modern amenities and lower gross effective rents," said Mr Waugh.
He said the average gross effective rent for the nine Sydney suburban office markets was $341 per square metres per annum.
"The lower gross effective rent for the suburban office markets compared to the Sydney CBD ($608 square metres per annum) makes the suburban market attractive for tenants despite the stronger rental growth (4.2%) against the Sydney CBD (-2.5%) year-on-year," he added.
The JLL research also showed that prime vacancy across the nine suburban markets sat  below the CBD vacancy level, at 9.2% and 11.3% respectively.
"Quality supply is scarce in the Sydney suburban office markets and little supply is forecast to come on stream in 2013 and 2014, which should see a tightening in the vacancy rate as was recorded in Parramatta, Macquarie Park and Homebush/Rhodes in Q2/2013," said Mr Waugh.
Sydney suburban upper yields ranged from 7.25% to 9.00% compared to 6.00% to 7.50% for the Sydney CBD, JLL said. It is forecasting yields to compress in the North Sydney and Parramatta markets in 2013 and 2014.
A number of institutional investors were preparing to raise capital for non-CBD office funds, said Mr Waugh, as those markets offered a combination of high yielding assets together with strong income streams.
"As a result, the demand for non-CBD product is likely to increase over the next 12-36 months, " he added.
</body></html>

Significant depth in Sydney's non-core office market: Jones Lang LaSalle

<html><body>
Commercial property in sound locations with long-term leases to secure tenants should be increasing in value as interest rates fall and new stock diminishes.  The following article highlights trends over the last four years that will enhance the relative attractiveness of commercial property investments.
It shows how the income return on capital invested in a commercial property investment has increased from 8.4% to 14.3% over the same period.  The return on fixed-interest investments has fallen from around 7% to 3.2%.  
If you purchased a government bond earning 5% per annum over five or six years and interest rates fell as they have done recently to 3% per annum, then the value of your government bond would rise by about 10%.  This is because the government bond that you hold is earning 2% more each year than new bonds on issue.  
Commercial property is usually on longer-term leases and the tenant usually per annumys most of the outgoings, thus net rental income should be more predictable over a longer term. 
For example, a property in Wollongong is leased-out to Government tenants for seven years.  On commencement of the lease, net rents represented 8% of the value of the property and rose by 4% per annum.  This 8% is called the cap rate.
As interest rates fell over the last few years, the value of the property should have risen because the net rental return had an increasing premium over the prevailing level of interest rates.  This did not happen because the pool of willing buyers contracted and those remaining started to price-in a greater level of risk associated with vacancy or lower rental returns or lower sale value - at the end of the lease.  
Simultaneously, finance for such commercial investments became harder to source and shorter in duration and banks charged increased margins.  Margins on many commercial loans rose by over 2% in the last few years and the average length of loans reduced by 40%.  The increased margins meant that investors did not benefit from the full imper annumct of the general reduction in interest rates. 
For example, in late 2007 the prevailing interest rates on a five-year loan was 7% and the bank margin was as low as 0.6% giving the all-up cost of finance at 7.6% per annum.  
Today the loan is likely to be for only three years at 3.2% per annum and the bank margin would be around 2.5% giving an all-up interest rate of 5.72% per annum, an effective drop of only 1.9% per annum.  
With fewer new investors and greater attention to the risk associated with vacancy or the expectation of lower rental returns at the end of the lease and tougher finance conditions, the level of net rental return (Cap Rate) demanded by investors rose. 
In our example, the required level of return needed to attract a purchaser exceeded 10%.  This meant that in order to achieve this 10% return, the property dropped in value by 20%.  
These lower property values were then reflected in lower valuations of the properties. 
With lower valuations, banks started to demand borrowers reduce their loans.  If the loan-to-valuation (“LVR”) requirement was 60% (ie borrowings represented 60% of the property value) and the valuation fell by 20% then the bank would demand that the loan be reduced by 20%. 
Those investors who repaid the debt benefited from a reduced amount of interest paid to the bank on the reduced loan, while continuing to receive net rental distributions equal to or greater than (due to the indexation) the level they received prior to the devaluation of the property. 
Unfortunately many investors were unable or unwilling to reduce the bank loan despite cashflows being enhanced, thus the properties were put on the market and sold at the reduced levels.  
New investors are now benefiting from higher net rental returns, lower interest rates and diminished supplies of competing stock. 
In the above example, the net rental return is around 10% and the cost of finance was 5.7%.  Therefore the new investor is making a return on the borrowed portion of the property of 4.3% (10% minus 5.7%) interest and a return of 10% on their own capital, giving a total return on their own capital of 14.3% per annum.
<hr>
Rowan Wall is the principal of <a target="_blank" href="https://www.eclipsefinancial.com.au/">Eclipse Financial Group</a>.
</body></html>

rwall-aNpFqpxQoZ

What are the relative attractiveness of commercial property investments?  Rowan Wall

<html><body>
While requirements may differ slightly from lender to lender, in general if you have to borrow 80% or more of the value of a residential property, you will have to pay lenders mortgage insurance (LMI).
LMI is paid by the borrower, but protects the lender if you default on your home loan and your lender is required to sell your property.
If the property sells at a loss, the lender can make a claim against its LMI provider for the shortfall.
Paying LMI allows borrowers with smaller deposits to buy earlier, rather than wait until they have saved up a 20% deposit.
There are two main providers of LMI in Australia, these being Genworth and QBE LMI.
These are 8 things you need to know about LMI:
<ul>
<li>
If you have less than a 20% deposit, you will more than likely need to budget for the cost of LMI.
</li>
<li>
LMI can be costly. Borrowing 95% on a property worth $400,000 will mean a premium of around $14,000. Borrowing 90% will mean a premium of around $7,000, according to the <a target="_blank" href="https://www.genworth.com.au/borrower-centre/homebuyer-tools/lmi-premium-estimator/?gclid=CO2R6M2yprgCFQMwpAodTjQASA">Genworth LMI premium estimator</a>. QBE LMI provides this handy <a target="_blank" href="https://services.lmiconnect.com.au/lmiOnline/common/tools/calculator/nsr/CalculateNSR.do?action=start">servicing capacity calculator.</a>
</li>
<li>
Stamp duty and GST are payable on LMI Premiums, subject to state government rules.
</li>
<li>
Your lender will determine if you will need to pay LMI after they have assessed your loan application and documentation.
</li>
<li>
LMI is a one-off premium you pay. The amount is determined by your lender based on a number of factors including, but not limited to deposit size, loan size, and type of loan.
</li>
<li>
You may be able to capitalise your LMI premium. This means adding the premium to your home loan amount and paying it as part of monthly repayments. However you will pay more as interest is payable on the LMI premium.
</li>
<li>
LMI is not portable, which means if you want to refinance into a cheaper rate but are still borrowing in excess of 80% of the value you will have to pay LMI again. “The premium paid on your first loan does not carry over to another loan if you want to refinance even though your premium is paid to a specific mortgage insurer,” says inTouch Finance founder Paul Ryan.
</li>
<li>
Don’t confuse LMI with mortgage protection insurance, which you take out to cover loan repayments in the event you are unable to make payments because you’ve lost your job, been disabled, or worse.
</li>
</ul>
</body></html>

po-LsXgBTHBmX

Less than a 20% deposit? The 8 things you need to know about lenders mortgage insurance (LMI)

<html><body>
According to Robert Gottliebsen and Saul Eslake, an investor led property resurgence is on the cards.
Low interest rates are driving demand and the lack of development funding is restricting supply and this will create “<a target="_blank" href="https://www.propertyobserver.com.au/news/robert-gottliebsen-forecasts-mother-of-all-dwelling-booms-driven-by-property-investors/2013081864307">the mother of all dwelling booms</a>”.  
There is no doubt the property market is on the move with clearance rates now above 70% in Melbourne and cracking 80% in Sydney.
But the fact that the overall residential market is growing doesn’t mean you can expect to buy any old property and achieve the same result.
When a market is hot there is a perception that every asset will work; you just need to jump in and hold on for the ride.  
Investor driven property booms can cause dramatic spikes in the market because of the kinds of property most investors want to buy.
Investors have different criteria to that of homebuyers. They want low maintenance, good tax breaks and stable rental income.
Home buyers on the other hand usually want space, location and affordability.  
Well-educated property investors tend to buy established properties in high demand areas where they will get consistent rental return and capital growth.
However as the wave of investors hit the market they will be in danger of getting caught up in the heat of the market and make impulse decisions that make sense at the time.  
To minimise risk, investors will need to take heed of the mistakes investors made during the last “mother of all dwelling booms.”
Property prices surged by around 20% each year from 2001 to 2003, when investor-fuelled demand ratcheted up the Melbourne median house price.  
Many of these investors bought property that looked good at the time, rather than property that would still be performing well five or 10 years later.
Some bought into multi-unit developments in the CBD/Docklands precinct, reasoning that a surge in construction corresponded with a swell in demand from tenants and sure-fire prospects for capital growth. 
In fact, the opposite happened.
The majority of other purchasers in these developments were also investors, so by the time the plethora of construction finished, demand from purchasers had run its course.
Without a significant number of home buyers to fuel ongoing demand, the CBD/Docklands market languished in an oversupplied state. Property values stagnated, and in some cases, fell.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="armstrong_aug_21_one" height="300" width="400" src="/images/stories/2013/08/armstrong_aug_21_one.jpg">
For example, the property pictured above in the Docklands was purchased for $582,000 in 2001. Five years later the investors had abandoned the property market and the best price offered was $455,000. The investor had no choice but to take the loss and move on.            
Property investors make up around 30% of the market and although this can drive markets to new heights, it is home buyer demand that really maintains property values over the longer term.
As we move further into the next phase of the market cycle, property investors will be wise to steer clear of assets that primarily have demand from other property investors.  
 
<hr>
 Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
</body></html>

marmstrong-sd3emVLPPb

Be wary of the investor driven property boom: Mark Armstrong

<html><body>
 The  Mezzaluna Potts Point building has been listed for lease through Metro Commercial.

 Seating 120 diners, its a three level building at 123 Victoria Street.
<img alt="potts_point_aug_19_one" src="/images/stories/2013/08/potts_point_aug_19_one.jpg" width="470" height="353">
In 1999 Mezzaluna was being run by Marc Polese who opened the restaurant in 1992.
His father Beppi had at that time been running a restaurant in Sydney for 43 years.
Beppi Polese opened Beppi's restaurant in East Sydney in 1956, married Norma in 1958, and Marc was born in 1961.
The family's second restaurant was the old Butler's restaurant on Victoria Street which was vacant.
It is now vacant with around $4000 a week being sought through Allan Levy at Metro Commercial. 
</body></html>

The Mezzaluna premises at 123 Victoria Street Potts Point for lease by Polese family

<html><body>
I welcome the decision by the state government to maintain the stamp duty exemption for first-home buyers but I am disappointed by changes to the First-Home Owners Grant (FHOG).
Maintaining the stamp duty exemption for first-home buyers is a huge saving to many people, but slanting the FHOG towards new construction and away from established dwellings will not produce the outcome the government is expecting.
The Treasurer adjusted the FHOG from $7,000 to $3,000 for the 70% of people who purchase an existing dwelling. New-builds will receive a boost of $3,000 to a grant of $10,000.
In defending the policy shift Premier Barnett said it would help stimulate construction and provide more homes.
That argument is not supported by any evidence from over east where other states have already gone down a similar path.
Building a new home is a lifestyle decision that around 30% of first-home buyers are attracted to. It is not a decision based on cost.
The policy shift in the application of FHOG is unlikely to have any impact on boosting construction.
More importantly, the building industry doesn’t need any stimulus and is currently flat-out meeting existing demand.
Data from the Office of State Revenue show that for the June quarter, first-home buyer applications for new-builds jumped by 36% on the March quarter.
Grant applications from first-home buyers increased from 1,522 in the March quarter to 2,075 in late July, reaching their highest level since September 2009.
However, the 12.5% increase in land tax for other owners is a kick in the shins for property investors who supply two thirds of rental stock in WA. It will suck an extra $73 million out of their pockets as a punishment for being an investor.
The budget’s projected land tax revenue in 2013-14 is $657 million and is projected to raise an extra $338 million over the forward estimates.
These owners already pay rates to local government for the provision of services yet get nothing from the state directly and subsidise government services which benefit the entire community.
It’s a great concern that the government remains so dependent on property taxes to run the state despite the enormous revenue earnings from resources.
 
<hr>
 David Airey is president of the <a href="https://reiwa.com.au/home/default.aspx" rel="nofollow" target="_blank">Real Estate Institute of Western Australia.</a>
 
This article was originally published on <a style="color: #006699;" title="REIWA - Real Estate Institute Western Australia" href="https://www.reiwa.com/">reiwa.com</a>.
</body></html>

dairey-MVZf5ZguQC

WA government's changes to the FHOG unlikely to provide any boost to construction: David Airey

<html><body>
Recent surveys found Melbourne auction listings are selling for <a target="_blank" href="https://www.propertyobserver.com.au/victoria/melbourne-auction-homes-selling-10-over-advertised-price/2013080863977">11% more than their pre-auction price guides</a> while <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/sydney-auctions-selling-well-above-price-guides/2013081964121">Sydney auction properties are selling at 12%</a> more than their price guides.
Both surveys suggested the trend of selling above prices guides had increased significantly over winter.
What’s your experience?
{module Have the auctions you’ve seen been selling for more than 10% above the price guide?}
 
And  
{module Do you think higher spring stock levels and more choice for buyers will reign in the trend of runaway auctions?}
</body></html>

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News