<a href="https://www.urban.com.au/developers/far-east-consortium">Far East Consortium</a>’s 640 Bourke Street stands as a testament to&nbsp;<a href="https://www.urban.com.au/developments/melbourne-vic-3000">Melbourne</a>’s ability to bridge its storied past with a bold vision for the future.&nbsp;

Rising above the heritage-listed Eliza Tinsley building, the development reflects a broader shift toward adaptive reuse in the city, where historical assets are retained and reinterpreted as part of new residential development.

Designed by <a href="https://www.urban.com.au/architects/rothelowman">Rothelowman</a>, <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> incorporates the Eliza Tinsley building as its foundation, housing a grand gallery and lobby space that serve as both a functional and symbolic centrepiece. The heritage façade informs the tower’s design, creating a connection between Melbourne’s past and its contemporary skyline.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=365684]

Above this historic base, the 68-storey tower will deliver just over 600 residences, a notable reduction from earlier schemes, reflecting a deliberate move toward larger-format apartments and a stronger owner-occupier focus.

Unlike traditional CBD developments that prioritised investor stock, 640 Bourke Street has been repositioned to respond to changing buyer expectations.

"The discussion was all around making 640 Bourke Street the best residence to live in, to be much more focused on the people in the building rather than people looking at the building," Marsland explained.&nbsp;

This shift is evident in the development’s interiors, which emphasise practical luxury with spacious layouts, high ceilings, and floor-to-ceiling windows framing sweeping views of Melbourne and Port Phillip Bay.&nbsp;

“What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Lauren Sheldon, Far East Consortium’s Director of Sales and Marketing, said.&nbsp;

[smartcode_project:default project_id=509 project_image_fid=365687]

Rothelowman Associate Jun Chang added, "We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."&nbsp;

Amenities spanning more than 3,000 sqm across multiple levels further reinforce this focus on resident experience. These include a pool, gym, co-working areas, and a range of hospitality-inspired spaces such as a whisky lounge, library, and private dining rooms, many drawing reference from traditional bathhouses and Melbourne’s laneway culture.

"We wanted to make both the pool and the gym area to be absolutely destinational, and when you traverse across to these spaces, there is a gentle familiarity to the beautiful notions of the hammams and the Roman baths, a gentle nod to history," Chang noted.

At street level, the project contributes to the ongoing transformation of the western CBD, with upgrades to Langs Lane and the introduction of retail, hospitality, and gallery spaces designed to activate the precinct and strengthen its connection to the surrounding city fabric.

[smartcode_project:default project_id=509 project_image_fid=365689]

The location places residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market, and the Docklands waterfront, positioning the development within a rapidly evolving inner-city neighbourhood.

"We believe it's the best site left in the city of Melbourne," Craig Williams, Executive Director at Far East Consortium, said.&nbsp;

640 Bourke Street is Far East Consortium’s 14th building in Melbourne’s western CBD.

"A very elegant designed building. It's going to be a Melbourne statement for many, many years to come."

One-bedroom apartments are priced from around $640,000, with 640 Bourke Street targeting completion in 2029.

Renders shown are Artist's Impressions correct as of May 2026.

[smartcode_project_cta:default project_id=509]

Joel Robinson

Heritage-led design anchors Far East Consortium’s 640 Bourke St, Melbourne

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD Group</a> has set a new residential price record in Queensland with the $30 million sale of the penthouse at its <a href="https://www.apartments.com.au/new-apartments/one-burleigh-88-the-esplanade-burleigh-heads-qld-4220">ONE Burleigh</a> development in Burleigh Heads.

The sale equates to around $37,500 per sqm.

The two-level, 800 sqm penthouse, featuring five bedrooms, five bathrooms, five car spaces, and a private infinity pool overlooking the Pacific Ocean, was acquired by a Gold Coast-based entrepreneur, highlighting continued demand for ultra-premium beachfront product.

Selling agent Freddie Tehle of PRD Burleigh Heads said the result reflects tightening supply of high-quality, large-format apartments in Burleigh.

“There’s very limited opportunity to secure this level of scale and absolute beachfront position in <a href="https://www.apartments.com.au/developments/burleigh-heads-qld-4220">Burleigh Heads</a>,” Tehle said.

“Buyers are increasingly seeking apartments that genuinely replace a standalone home, and this penthouse delivers that with its size, privacy, and direct ocean frontage.”

[smartcode_project:default project_id=146358 project_image_fid=323057]

The sale comes as construction progresses on ONE Burleigh, a boutique development of 17 full-floor residences at 88 The Esplanade, scheduled for completion in early 2027.

Developed by MAYD Group and designed by <a href="https://www.apartments.com.au/architects/mas-architecture-studio">MAS Architecture</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/sici-design">Sici Design</a>, the project has been positioned as a collection of house-sized beachfront apartments, each occupying an entire floor with around 381 sqm of internal and external living space.

When construction commenced, MAYD director Todd Mould pointed to the long-term resilience of premium coastal real estate as a key driver behind the project.

“Real estate, particularly at the premium end, remains one of the most resilient and proven long-term investment avenues,” Mould said.

“Our ambition is that anyone who buys a MAYD-built product can genuinely feel the care, craftsmanship and commitment we bring to every detail.”

[smartcode_project:default project_id=146358 project_image_fid=323055]

Each residence has been configured with four bedrooms, multiple living zones, a private office, and expansive ocean-facing terraces. Interiors draw on a restrained material palette, including travertine stone, timber joinery, and integrated premium appliances.

Interior designer Sici Design said the approach was to reflect the project’s coastal setting through both materiality and spatial planning.

“ONE Burleigh is our vision of luxury living, designed to bring the essence of Burleigh Heads' vibrant coastal beauty into an unparalleled residential experience.”

Residents will have access to a suite of wellness-focused amenities, including pools, sauna facilities, and dedicated relaxation spaces, reflecting a broader shift toward lifestyle-driven apartment design on the Gold Coast.

[smartcode_project:default project_id=146358 project_image_fid=323052]

The project occupies a southern Esplanade site with uninterrupted beachfront frontage, an increasingly rare offering in Burleigh Heads, free from the Norfolk Pines that line much of the coastline and often limit direct ocean outlook.

Mould said the design intent was to balance that outlook with a sense of retreat.

“Living at ONE Burleigh is about how your day naturally unfolds, morning light across the ocean, coffee on the balcony, and being in Burleigh but elevated above the noise.”

The result further reinforces Burleigh Heads’ emergence as one of the Gold Coast’s most tightly held and supply-constrained beachfront markets, where boutique, owner-occupier-focused developments are increasingly setting new price benchmarks.

[smartcode_project_cta:default project_id=146358]

MAYD Group sets Queensland record with $30 million penthouse sale at ONE Burleigh in Burleigh Heads

Apartment developers in the Gold Coast are finding new, creative ways to differentiate themselves from competing projects, as new supply starts to flow through up and down the Coast.

Developer BIG Projects brought in the renowned Sydney-based design studio YSG Studio to craft the interiors for The Frederick, BIG Projects' new Mermaid Beach project and YSG Studio's first move into the multi-residential development space.

[smartcode_project:default project_id=110588 project_image_fid=5346]

It was a strategic move for BIG Projects to bring in a Sydney eye to the development.

“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of BIG Projects.

“We wanted YSG Studio to capture the essence of Nobby’s, to design a building that embraces life, light and connection, while creating a genuine sense of place.”

There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;

[smartcode_project:default project_id=110588 project_image_fid=5347]

Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."

“Nobby’s has such an iconic energy, it’s one of those rare pockets of the Gold Coast where the community, the beach, and the streets all feel connected,” Ghoniem says.

"Responding to the neighbouring coastline, soothing curves add a relaxing regional overlay, while unique detailing really sets it apart. It’s a place that feels lived in from the moment you step inside.”

A standout feature of The Frederick is its rooftop terrace, an uncommon inclusion for a boutique, low-rise building, where amenity is typically concentrated at ground level.

[smartcode_project:default project_id=110588 project_image_fid=5360]

Positioned to capture panoramic views from the hinterland to the ocean, the rooftop has been designed as a series of intimate zones. It includes a pool, sauna, sun decks, workspaces and dedicated entertaining areas.

“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.

Architecture for the project was led by Plus Studio, with landscape design by LDG Landscape Architecture.

SRQ Projects Director Nick Clydsdale, who is handling sales at The Frederick, says the majority of enquiry is coming from South East QLD and Victorian buyers who have been actively searching between Broadbeach and Mermaid Beach for some time.

"They’ve reviewed a number of projects, however this one has stood out for its unique detailing and compelling design,"&nbsp;Clydsdale says.

Site demolition is slated for this month, with construction commencing soon after. BIG Projects is targeting a late 2027 completion.

[smartcode_project_cta:default project_id=110588]

Sydney’s YSG Studio makes Gold Coast multi-residential debut with BIG Projects at The Frederick

Melbourne-based property developer ALTA Property has this week achieved planning approval for the adaptive re-use of a former commercial tower into a $200 million, 169-apartment project at 10 Queens Road, one of the last developable sites along the Albert Park Lake-fronting boulevard.&nbsp;

Set within one of Melbourne’s most sought-after precincts and designed by <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser and Partners</a>, the illustrious building will offer unparalleled views across Albert Park Lake, Port Phillip Bay and Melbourne CBD.&nbsp;

The mix of 1, 2 and 3-bedroom residences will be complemented by a ground-floor amenity featuring private dining, a lounge bar, gym and wellness spaces, co-working, outdoor communal gardens, and retail.&nbsp;

The 17-storey building is a masterclass in adaptive re-use, with the existing commercial building’s façade, shell and internal structure to be retained, before high-end residences are built from the ground up in a newly built Albert Park facing addition to the building.&nbsp;

Sitting atop the building will be two 320+sqm penthouses with private rooftop terraces, which are expected to be priced between $9 - $11 million.&nbsp;

<img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="aa11211b-5581-43f9-940c-fc84d30a0e61" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/C_04.png?VersionId=Yhf5p_1EgGDu_zOIMFgvA8Ug8j3sTFQs" />

Architecturally, the building will feature a curved, geometric façade that celebrates and elevates the existing structure, with warm, muted tones which were selected to extend the materiality of the existing building rather than contrast it.&nbsp;

Interiors will bring together three metre high ceilings with waffle concrete in some spaces, natural timber, granite and Australian materials, culminating in crafted, generous and considered spaces that are defined by authenticity.&nbsp;

The adaptive re-use means that the Queens Road project will be a sustainability led, high-quality finished product, with a 62% saving in carbon emissions by re-using the existing structure rather than knocking it down and rebuilding.&nbsp;

ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;

Melbourne’s property market growth is currently led by apartments. According to RPM VIC Apartments &amp; Townhomes Market Report (April 2026), units are outpacing houses, especially in the middle ring suburbs where median prices hit $757,500 – a four-year high that represents 2.9 percent growth quarter-on-quarter.&nbsp;

<img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="647e13d7-b4bc-433a-9bc9-fe3c3dd4f2ec" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/V_06.png?VersionId=ou4NUCWUgA3NAy.6CQJlEdKX50j3dOk6" />

For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;

“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.

"With a considered project team and a premier site along one of the city’s most sought-after boulevards, we look forward to contributing to the fabric of this established address.

“Other Australian markets are getting a lot of attention, but I believe the depth of value in Melbourne is being overlooked. The fundamentals are strong, population growth is steady and, based on our preliminary conversations with a leading builder, construction costs are beginning to normalise, creating further opportunity."

Givoni says the project is a&nbsp;highly considered example of adaptive re-use, delivering quality, high-end residences, premium hotel-inspired amenities and an architecturally striking façade, all achieved without the need to remove the existing structure.

"We are really looking forward to the market’s response,” he said.&nbsp;

ALTA Property to deliver $200 million Queens Road apartment tower

Construction is set to begin at <a href="https://www.apartments.com.au/new-townhouses/orchard-mews-glen-iris-18-scott-grove-glen-iris-vic-3146">Orchard Mews</a> in Glen Iris, with&nbsp;PC Whitehall &amp; Sons&nbsp;now appointed as the townhome development moves into its next phase.

The development by&nbsp;<a href="https://www.apartments.com.au/developers/montcoeur">MontCoeur</a>,&nbsp;located at 18 Scott Grove, is now around 30 per cent sold, with completion targeted for late-2027.

Orchard Mews comprises a curated collection of three- and four-bedroom customisable townhomes, positioned within one of <a href="https://www.apartments.com.au/developments/glen-iris-vic-3146">Glen Iris</a>’ more tightly held residential streets. The low-density project has been designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo</a>, bringing together a team known for high-end residential projects across Melbourne.

[smartcode_project:default project_id=150128 project_image_fid=366285]

The development is defined by its focus on flexible living and long-term usability. Each residence includes multiple living zones and a customisable multipurpose room, allowing buyers to tailor spaces to suit changing needs, whether as a home office, additional bedroom, wellness area or entertainment space.

Architecturally, the townhomes emphasise natural light and spatial volume, with dual-aspect layouts and double-height living areas incorporated into the design. Interiors feature natural stone benchtops, premium appliances, and a neutral material palette intended to support everyday functionality rather than statement-driven finishes.

All residences are all-electric and include private lifts and secure double garages, reflecting a broader shift toward sustainability and future-focused housing in Melbourne’s established suburbs.

[smartcode_project:default project_id=150128 project_image_fid=366277]

Outdoor connections are also central to the offering, with a mix of private courtyards and terraces extending internal living spaces and integrating with the landscaped surrounds.

The Scott Grove address places Orchard Mews within close proximity to some of Melbourne’s key lifestyle and education amenities, including Scotch College, Sacré Cœur, Cabrini Hospital and the retail hub of Chadstone. Public transport access is also nearby, with trams and Gardiner Station providing connectivity to the CBD and surrounding suburbs.

[smartcode_project_cta:default project_id=150128]

Construction to commence at luxury Glen Iris townhome project, Orchard Mews

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

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EXPERT OBSERVER
It's a challenging times for policymakers.
I don't know of a single obsever who believes that the unemployment rate is going to fall to below 5 per cent this year, let alone towards full employment, however low that might prove to be.
There was another soft result from SEEK's job ads series, down by 7 per cent over the year to January, and the labour force update for January was also distinctly underwhelming.
Employment increased by +13,500, as the annual growth in employment to decelerated further to +1.94 per cent.
<img src="https://1.bp.blogspot.com/-Z-pr9FnAlWM/Xk5YTURc8RI/AAAAAAAA0WE/ZbHyF76etN4mz4xvZnYBnk1g8cdbUJ3MACNcBGAsYHQ/s640/A2.jpg" width="640" height="354" data-original-height="802" data-original-width="1446">
Part-time employment growth (+2.8 per cent) has continued to outstrip the growth in full-time positions (+1.7 per cent).
Employment growth remained solid in Victoria, to be up +91,000 over the year, with Queensland next up at +67,000, but New South Wales (+43,000) has clearly come off the boil, and there's all but nothing meaningful to speak of elsewhere.
<img src="https://1.bp.blogspot.com/-kygDR0HIlSI/Xk5YUQYmqXI/AAAAAAAA0WM/nz14Z7lF1pMhBY4Fma_lhsaYOfklLGFaACNcBGAsYHQ/s640/A4.jpg" width="640" height="382" data-original-height="815" data-original-width="1361">
With the participation rate ticking back up a notch, the unemployment rate jumped from 5.09 per cent back up to 5.28 per cent in January, which was disappointing, if unsurprising. \
<img src="https://1.bp.blogspot.com/-NkUsoIMfAIQ/Xk5YTNm-O9I/AAAAAAAA0WA/Zu5CMyJdwJobSntPPkRgM23mRXrz3OArACNcBGAsYHQ/s640/A1.jpg" width="640" height="378" data-original-height="826" data-original-width="1396">
The disruption to the economy in January saw the unemployment rate in Victoria saw spike quickly to 5.4 per cent in seasonally adjusted terms, suggesting that far too much slack remains.
The smoother trend figures plotted below show only New South Wales (4½ per cent) as remotely sitting in the right postcode. 
<img src="https://1.bp.blogspot.com/-wZogq354els/Xk5YTQBPNTI/AAAAAAAA0WI/ZG9AIxfIEmQVF4jjjIFIBE17u6KVJSIXgCNcBGAsYHQ/s640/A3.jpg" width="640" height="380" data-original-height="823" data-original-width="1382">
Finally, the trend result for monthly hours worked was just +1.3 per cent higher year-on-year, which is also a lacklustre read and well below the rate of employment growth.
<img src="https://1.bp.blogspot.com/-zrshZf9Zwv4/Xk5YUePWn4I/AAAAAAAA0WQ/aLBqw0rk3gIKEf3QeyEFahyorw5Co8y0QCNcBGAsYHQ/s640/A5.jpg" width="640" height="374" data-original-height="814" data-original-width="1388">
Overall, it wasn't a terrible report, but the widely predicted increase in spare capacity does appear to be playing out, with more of the same likely to be in the post as the Chinese travel ban persists throughout February and beyond. 
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
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pwargent-M4siyDbqQY

Employment growth remains a challenge for policy makers: Pete Wargent

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A warehouse and showroom property on the Nepean Highway, at Bentleigh in Melbourne’s south-east, has hit the market. 
It comprises a single level, solid brick, 435 square metre facility, with roller door access. 
Zoned Commercial 2, the site has a frontage of just under 11 metres, and a 46 space car park including eight spaces designated for the tenancy.
The property will be sold subject to a short term lease to Carpet Call currently returning $124,140 per annum net. 
Teska Carson’s Luke Bisset and Michael Ludski listed the asset.
"The Nepean Highway is one of Melbourne’s major arterial routes and has in recent years seen a significant rise in residential and commercial development and that is, in no uncertain terms, due to the accessibility it provides as a key transport link to the affluent bayside suburbs,’’ Mr Bisset said. 
Mr Ludski said the open plan layout provided operational flexibility to cater to a number of different uses.
The property will be auctioned March 5.  
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j.ballantyne1990-6AQqhLzZaK

Carpet Call Bentleigh showroom comes onto market

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The South Sydney industrial property market is undergoing an internal makeover, as warehouses are being converted throughout the Alexandria region to higher end functional buildings.
According to Edward Washer, Director, Head of South Sydney, Industrial and Logistics at Savills Australia, given its prime location to the CBD, airport, Eastern Suburbs and Inner west, South Sydney’s typical industrial buildings/sites are being adaptively converted into commercial, retail and residential.
Mr Washer said, “recent examples include 29-31 O’Riordan Street, Alexandria – an industrial building which has undergone a full refurbishment into a retail/commercial precinct and is home to Meat Emporium, Liquor Emporium, and more uniquely, Notaras Seafood restaurant."
“It’s not often a restaurant is built inside a warehouse, but if you look at what The Grounds of Alexandria did to their fit out space, it’s no surprise this is the way of the future for city fringe industrial warehouses, he added"
Another example includes 37-41 O’Riordan Street, Alexandria (City Close) – a traditional modern industrial estate going through adaptive refurb for commercial style tenants due to the demand, with the head offices of Koala Mattresses signing a 5 year lease and Dimeo Cleaning signing a 1 year.
Hayesbury, at 5 Hayes Road, Rosebery, is a traditional older style industrial site that Goodman are refurbishing into a high-end commercial space. Under construction at the moment however no tenants yet to commit.
The first property in 2020 to hit the market for sale is 1 Gillespie Avenue, Alexandria, a circa 20 year old industrial warehouse with a portion refurbished to a creative office, done so by the current tenant and fit out company, Intermain.
According to exclusive sales agents, Edward Washer and Sam Wallace of Savills Australia, the freestanding warehouse is a rarity in this market and is likely to be snapped up by either high net worth privates, property funds or institutions.
Edward Washer, Director, Head of South Sydney, Industrial and Logistics at Savills Australia said, “this is an extremely unique, flagship property and is on trend with what we have seen over recent years; warehouse conversions to office, retail, showroom or higher and better uses/occupiers."
“The strong tenant covenant adds further depth to the property’s appeal, given the reputation of Intermain and quality of the fit out” he said.
The holding, 1 Gillespie Avenue, Alexandria, is for sale via expressions of interest closing April 1 2019.
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South Sydney warehouse conversions perform strongly: Savills

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EXPERT OBSERVER
I think there were 2 pronounced developments during Q4 2019i, the first being there was a broad acceptance that an improvement in the market is here to stay in terms of price growth.
In terms of economic indicators, we’ve seen an improvement in the labour market over the past month or 2 which is a real positive compared to mid2019 when unemployment was trending higher.
The challenge is will there be enough job creation over the next few months given the headwinds around the bushfires and Coronavirus.
ANZ Research is anticipating the economy will not create enough additional jobs to drive unemployment lower and wages higher, which is expected to result in 2 more interest rate cuts towards the middle of the year.
The RBA has emphasised its belief that rate cuts are having the desired impact, but that it does take time.
The implications for the economy and property markets will continue to be felt through 2020.
In terms of property indicators, we’ve seen some tentatively positive numbers coming through in building approvals. This is important given they were at very low levels throughout 2019 for both apartments and detached houses.
Of course apartments were hit harder which reflected concerns over build quality and cladding issues which were more prominent in Sydney but still had an impact in Melbourne.
That said, it’s worth highlighting the large lead and lag times before getting product onto the market. Even if building approvals start to pick up today, there will still be a housing shortage in the short term.
What are your predictions for 2020?
Broadly it will be a good year from a housing standpoint. Anticipated rate cuts will further entrench growth in prices for existing and new dwellings across both detached housing and apartments. Prices are already above the previous peak for units and apartments in Melbourne.
We’ll continue to see a pretty solid presence of first home buyers in the market. But it gets complicated because price growth doesn’t help affordability which is already challenging. While the new home loan deposit scheme will help 10,000 first home buyers a year, it won’t affect a material change.
The demand and supply dynamic will put upward pressure on prices initially, but building approvals and construction should start to accelerate in the second half of the year. That’s the key challenge; supply can take 12-18 months to come through, and the delay could put further pressure on both housing prices and rents.
Vacancy rates are already low and if we’re not building enough for the remainder of the year it’s likely the vacancy rate will continue to fall and result in continued rent increases.
Auction results have been strong and there are greater levels of stock on the market and rising transactions.
It’s not just a short term sugar hit which people might have been expecting, and the realisation that a stronger market is here to stay is why we’re seeing more people in the market keen to purchase.
Secondly, the supply-demand imbalance continues. Over the final quarter last year we finally started to see some positive signs regarding the construction pipeline, which has been a long time coming. We’re not talking about a sharp rebound, rather some green shoots emerging by way of building approvals starting to stabilise rather than continuing to fall.
Building approvals fell more than 25% from the peak, and have now recovered just 3%. Housing finance also picked up for construction of new dwellings for both owner occupiers and investors, which is usually a good indicator of where building approvals will go. So we have reason to be more optimistic about the construction cycle than we were 3 months ago.
What are the key economic and property indicators telling us?
It’s a little mixed.
On the economic front, the recent bushfires and Coronavirus present some challenges. For people directly by the bushfires it’s catastrophic, but the impact on the broader economy is likely to be temporary.
There will be some rebuilding stimulus which the federal government has already announced that will go directly to these communities. Coronavirus will have a larger impact.
A recent ANZ Research note forecast the bushfires to take 0.2% off GDP, while Coronavirus will shave off 0.5% due to the impact on tourism and foreign students. And, unlike the bushfires, there won’t be any stimulus measures.
If you compare it to the SARS outbreak in 2002-2003 when Chinese tourist arrivals fell by more than 80%, the share of Chinese tourism is now 5-times larger.
But it’s not just about the number of visitors; they also spend the most per person, which significantly magnifies the impact.
DANIEL GRADWELL is the <a href="https://bluenotes.anz.com/authors/a-e/Daniel-Gradwell" target="_blank">Associate Director of Property at ANZ</a>
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Property market strong but supply demand imbalance continues: ANZ's Daniel Gradwell 

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The Brisbane heritage-listed Princess Theatre in Woolloongabba is up for sale through Knight Frank. 
Built in 1888, the <a href="https://www.propertyobserver.com.au/https://www.knightfrank.co.uk/properties/commercial/for-sale/8-annerley-road-woolloongabba-qld-4102/5301470" target="_blank">Annerley Road property</a>, which was originally built for prominent Brisbane solicitor Phillip Hardgrave, consists of a large two-storey theatre and three retail tenancies on a 1103 sqm block.
The <a href="https://www.brisbanetimes.com.au/national/queensland/heritage-listed-brisbane-theatre-up-for-sale-20200224-p543md" target="_blank">132-year-old property</a> has been owned by Lifecity Church for the past 13 years, and has hosted other events, including wedding ceremonies, live music, school productions, private and corporate functions, theatre productions, trivia nights and fundraisers. The Princess Theatre has also recently been extensively refurbished, it has undergone recarpeting, repainting, floor polishing, and a new lighting and sound system. 
With Lifecity Church relocating to a more suitable location, the property is being taken to the market by Adam Willmore and Christian Sandstrom of Knight Frank. The expressions of interest campaign for this property closes March 19, 2020. 
The 500-person theatre was last sold in 2003 for $950,000, and $451,000 in 1992.
Mr Willmore said the Princess Theatre, which has 20 metres of street frontage to the busy street, "will generate significant buyer interest due to the scarcity factor and its stellar location, situated in the heart of Woolloongabba close to the Mater Hospital and less than two kilometres from the CBD.
"Woolloongabba is benefiting from investments in both public and private sector. The recent urban renewal and new development occurring within the suburb is redefining the suburb as a key southern 'gateway' into the city.
"The property adjoins retail amenity with plenty of parking and is occupied by two retail tenancies on the ground floor including a barber and café, along with a small office space." 
The theatre was first named the South Brisbane Public Hall and was designed to provide the rapidly expanding surrounding population with a communal venue that would become the perfect location for theatre, lectures, balls, musical performances and other public gatherings.
Over the years, the site has experiences a number of different incarnations, including being used as a clothing factory, a movie house, and the main site which hosted the rehearsals and administration for the US Entertainment Unit during World War II.
Lifecity Church director and venue manager, Frances Koops said she hoped the theatre would be purchased by someone who would make it available for enjoyment of the community for many years to come.
"The theatre is such a valuable piece of history, with so many drawn in by its old world charm and beauty," she said. 
 
 
 
 
 
 
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Brisbane's heritage-listed Princess Theatre up for sale

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EXPERT OBSERVER
Here’s a one-step guide for identifying a charlatan in the real estate commentary space. Those who claim markets are rising because we have record low interest rates have just identified themselves as pretenders.
With that simple process, we’ve eliminated all the chattering economists in the land and a large chunk of the electronic media glitterati who don’t allow a lack of knowledge get in the way of strong opinions.
They’re the same people who talk about Australian real estate as a single market – e.g. “Australian property prices will rise 5% this year”. This is a red flashing light that the talking head is an idiot. Even discussing one city as a single market is foolhardy (refer last week’s column about Sydney, which highlighted the different scenarios currently in play).
Here’s what passes for analysis with most of these counterfeit commentators: if Event A coincided with Event B, then Event A must have caused Event B – obviously. It’s the first and last refuge of people who know little about real estate dynamics and want to pretend they have something to say.
The problem is that Events A and B also coincided with Events C, D, E, F and G.
The thing about interest rates is that they’ve been at record lows for years. The only recent change is that they’ve gone even lower. They were super low when Sydney and Melbourne were having their big boom, so naturally that must have been the cause, according to those who subscribe to the Event A/Event B theory.
But those super low interest rates failed to cause booms in Brisbane, Adelaide or Canberra, nor in Perth or Darwin which both were going backwards steadily while the Big 2 were surging. Most of regional Australia also failed to boom, although Hobart and regional Tasmania eventually got on board with what I regard as a mini-boom.
So clearly some other forces must have been in play. That’s where Events C, D, E, F and G become relevant. More on that later.
The other thing about the interest rates theory is that it contradicts the lessons of the past. Those who think that “low interest rates = real estate boom” and “rising interest rates = real estate bust” haven’t been students of history.
Genuine nationwide property booms are extremely rare in Australia. ABS data on annual house price growth in Australia’s biggest cities show that, since 1970, there have been only four years in which all the major markets boomed at the same time. Only four years out of the last 50 – two years late in the 1980s and two years in the early part of this century.
During the other 46 years different scenarios have been playing out in different locations, all dictated by local conditions, oblivious to the level of interest rates and other big picture items.
During those two periods when we had national property booms, the late 1980s and the early 2000s, we had high interest rates – much higher than they are today. They kept going higher and the booms kept rolling on. Mortgage rates got as high as 17% before the profligate Eighties finally collapsed.
And it all makes perfect sense. The economy was raging, consumers were confident and spending big, and rates were rising to try to dampen things down. That’s when people are most likely to splurge on real estate.
Interest rates are low now because the national economy is generally rather beige and consumers aren’t that bullish. The exceptions have been Sydney and Melbourne, where the local economies have outperformed the national scenario, boosted by strong population growth and big infrastructure spending.
In trying to understand why markets do what they do, you have to consider both the macro and the micro factors, but paying particular attention to the micro ones.
Here are the macro factors that rolled out one by one to change the general situation from negative 12 months ago to positive now:
1. The Federal Election was decided.
2. The week following the Election, APRA announced relaxations of its lending guidelines.
3. The re-elected Federal Government announced tax cuts.
4. The RBA brought on a series of reductions to the official interest rates.
5. Mainstream media stopped obsessing on negatives and became significantly more upbeat.
6. Consumer sentiment towards real estate started to rise.
7. Buyers started to become active, but supply remained low.
8. Auction clearance rates started to improve.
9. Prices started to react in the big cities.
10. Forecasters published upbeat predictions for 2020 outcomes.
11. The ABS published loans data that showed improvement.
12. Consumer sentiment towards real estate improved further.
13. The federal scheme to boost FHBs clicked in.
14. Etc etc etc.
That’s the big picture. The national climate underpinning real estate improved, with interest rate cuts just one small factor- and overall not that consequential. Labor losing the un-losable Federal Election was probably the biggest one.
But the reality is that the things that matter the most happen at a micro level. Real estate markets are highly individual and arise out of local economies. That explains why Perth and Darwin have been going backwards while Sydney and Melbourne have been booming (and then busting and then recovering), amid stagnation in Brisbane, Canberra, Adelaide and elsewhere.
Local economic events are paramount. Look at Regional Victoria. While Melbourne was descending in 2018 and the first half of 2019, many regional centres in Victoria were experiencing double-digit annual growth in their house prices. Geelong, Ballarat, Bendigo, Warragul, Pakenham, Echuca, Mildura, Benalla and many others experienced strong markets with prices rising.
Regional Victoria is one of the national leaders on important factors like economic performance, population growth, low unemployment and infrastructure spending. Each individual regional centre has its own local dynamics, which provide reasons why local markets will rise or fall.
All of this is good news for property investors, because it means that there are always growth markets to be found, somewhere in Australia.
When people ask “Is this a good time to buy real estate?”, they’re asking the wrong question. A much smarter question would be “Where is it a good time to buy real estate?”
Because in this large and diverse nation, it’s always a good time to buy – somewhere.
Terry Ryder is the founder of hotspotting.com.au ryder@hotspotting.com.au twitter.com/hotspotting
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terryryder-YECXbqmri2

Housing markets aren't just rising because of record low interest rates:  Hotspotting's Terry Ryder

Insights into RBA thinking February 2020: RBA Minutes

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EXPERT OBSERVER
Six months ago it was hard to find any suburbs across the Greater Sydney Area with rising buyer demand, but now there are many. It’s been a sharp turnaround – but an uneven one.
Overall, this is the strongest Sydney market I’ve recorded in the five years that I’ve been conducting quarterly surveys of sales activity and price trends. 
Our Winter 2019 survey pinpointed the bottom of the Sydney trough and our latest survey, now under way, provides strong evidence of the market revival, showing just how much has changed since the middle of last year. 
Locations with rising markets, as measured by sales activity, can be found in 22 municipalities across the Sydney metro area, but the revival is not evenly distributed. The greatest uplift is being felt at the upper end of the market and many suburbs have not yet experienced significant improvement.
The number of suburbs classified as declining markets has dropped a lot but there are still 12 suburbs with deteriorating demand – and another 12 that have that characteristic as well as high vacancies and weak prices, which we therefore classify as danger markets.
There danger markets are all locations where apartments predominate. Seven of them are in the Parramatta LGA, where high levels of new apartments have been built in recent years and vacancies remain in the 5% to 8% range in several cases.
The leading market in the Greater Sydney Area is the Northern Beaches LGA. It has nine suburbs with rising sales activity, plus six others with steady buyer demand. 
Quarterly sales in Newport have been 28-36-53-64, while Freshwater and Frenchs Forest are stand-outs for maintaining highly consistently sales levels throughout the post-boom correction phase and now in the recovery.
The Inner West LGA is also performing well, with six growth suburbs and nine others with consistent buyer demand. Quarterly sales in Annandale have been 17-32-36-45-64, while Leichardt has been 59-68-77-105, patterns that will likely drive prices higher.
The Sydney City LGA has growth suburbs, but also shows the importance of not generalizing when discussing real estate in a major city. The central city LGA has five suburbs with growing sales activity, 11 with steady markets, three where demand continues to decline and one suburb which we classify as a danger market. All that diversity exists in one municipality. 
Blacktown is the strongest of the outer-ring markets, with five growth suburbs and 11 with steady sales activity. Schofields continues to stand out with rising sales activity – quarterly sales over the past two years have been 64-82-99-105-120-150-196-162.
Other LGAs with three or four growth suburbs include the Hills Shire, Ku-ring-gai, North Sydney and Sutherland municipalities.
This new survey also shows the recovery in the Canterbury-Bankstown area. Six months ago, 12 suburbs in this LGA were rated as declining markets, with sales levels dropping markedly. But now most of these suburbs have been re-classified as plateau markets, as sales levels start to improve. And four suburbs of the Canterbury-Bankstown LGA have shown sufficient revival to be classified as rising markets.
Across Greater Sydney, prices are reacting to the uplift in demand that is generally occurring in many locations, but most suburbs still have median prices below the levels of 12 months ago. This applies to 92% of suburbs for houses and 85% of suburbs for apartments.
But many suburbs have shown increases in the latest quarter. Examples include Mona Vale (median house price down 8% annually but up 2.3% in the latest quarter); Collaroy (down 15% in annual terms but up 9.5% quarter-to-quarter); Bronte (down 9% year-on-year but up 2.6% in the latest quarter); and Killara (down 15% annually but up 3% quarter-to-quarter). 
This is a pattern I expect to see becoming increasingly prevalent as the uplift being led by the more expensive areas spreads more widely across the metro area.
Terry Ryder is the founder of hotspotting.com.au <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">ryder@hotspotting.com.au </a>twitter.com/hotspotting
PICTURE SOURCE: <a class="external text" href="https://www.flickr.com/photos/34120957@N04" target="_blank" rel="nofollow">Alex Proimos</a>
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Northern Beaches rising buyer demand drives Greater Sydney to strongest Sydney market: Hotspotting's Terry Ryder

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Residential land sales have increased by 45.9 per cent from their record low in the March 2019 quarter, according to the February 2020 edition of the HIA-CoreLogic Residential Land Report.
HIA Economist, Angela Lillicrap said, "the first half of 2019 was particularly rough for the residential building industry, with falling house prices, uncertainty surrounding the election and the credit squeeze all weighing on confidence."
“Leading indicators in the final months of 2019 show that the housing market has improved and the increased demand for residential land is further proof of this."
“A shortage of land is one of the factors that has driven home prices to increase over the past decade. With demand for land picking up, it is important that an adequate supply is maintained each year to avoid undue pressure on housing affordability,” concluded Ms Lillicrap.
According to Eliza Owen, CoreLogic’s Head of Residential Research, “Demand for land and dwellings has rebounded strongly from June last year, which is also reflected in a 6.7% rebound in national dwelling values over the past 7 months."
"The strength of the rebound comes from a halved cash rate between June and October last year, the re-election of the Coalition Government providing certainty around negative gearing and capital gains concessions, and ongoing demand for owner-occupier dwellings as the millennial cohort moves through the first home buyer age bracket of 25-34."
"Prices for land and housing are likely to rise further over 2020, though this may be slightly mitigated by higher listing levels coming to market, as sellers take advantage of price increases,” she concluded.
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Demand for residential land is on the rise: HIA

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EXPERT OBSERVER
Coronavirus continued to make headlines this week; but for the economy, sentiment was the focus.
While Australian consumer sentiment firmed in February according to our <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2020/February/er20200212BullConsumerSentiment.pdf" target="_blank">Westpac–MI survey</a>, at 95.5 the index remains well below its long-run average, suggesting consumers remain pessimistic. This downbeat mood has been in place since mid-2019 and has coincided with a pronounced deterioration in consumer spending momentum.
Economic conditions ‘next 12 months’ and ‘next 5 years’ both bounced back in February but remain below the level of November 2019 and are only in line with their respective long-run averages. This is despite continued strength in employment growth as well as the considerable policy easing undertaken by both the RBA and Federal Government in 2019.
Given this policy context, more concerning still is that ‘family finances versus a year ago’ fell again in February to be back near its recent low and well below average. ‘Finances, next 12 months’ is almost 11% below the average of first-half 2019, and also materially below its long-run average. Unsurprisingly, the ‘time to buy a major household item’ index is depressed, 8 percentage points below average.
Interestingly, ‘time to buy a dwelling’ reversed January’s gain to be back near its recent low in February. On a longer view, at its current level of 112, this index is well below 2019’s peak of 127 but still materially above 2017’s low of 90. At play here is arguably a reduced belief amongst households that further interest rate cuts will be seen in 2020 as well the impact of housing affordability.
House price growth expectations remain strong nonetheless, having surged 70% over the nine months to January 2020. The <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42085" target="_blank">December housing finance</a> data points to strengthening demand amongst owner occupiers, the value of loans up 23% since May and back near 2017–18’s peak. Investors are more circumspect. While 16% above the May low, the value of loans is still comparatively low – in line with the 2012 experience.
Turning to the business sector, <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2020/February/er20200211BullAustralianBusinessConditions2020Jan.pdf" target="_blank">the NAB business survey</a> indicates confidence remained absent and conditions weak in late January. There are clearly a number of global and domestic headwinds for confidence. However, the greater concern is conditions. Profitability is weak, while trading conditions and forward orders are poor. The employment index has also lost momentum to now point to job gains circa 16k per month compared to 25k in mid-2019. Assuming flat participation, this would see the unemployment rate grind higher in 2020 – the opposite of what the RBA needs to see to have confidence that wages, growth and consequently inflation will firm as set out in their February Statement on Monetary Policy and Governor Lowe’s appearances last week (summarised in our <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42109" target="_blank">February Market Outlook</a>).   
Following the RBA last week, the latest MPS from the RBNZ set out their view of the outlook. On the assumption of a very mild coronavirus impact, <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/New_Zealand/2020/February_2020/MPS_Review_February_2020_-_Westpac_NZ.pdf" target="_blank">the RBNZ are sanguine on the outlook</a> and expect to keep the stance of policy unchanged hence. This is as our New Zealand economics team anticipated, but more optimistic than markets were positioned for. Both the labour market and inflation views support this adjustment, but the most prominent rationale for the change of stance is the Government’s plan to increase spending. A cash rate cut is still expected in August by Westpac New Zealand, but this will principally be as a result of a weaker global backdrop which will put sentiment and growth at risk. A stronger New Zealand dollar, which we expect, would also weigh on inflation.
Moving to the rest of the world, our latest Market Outlook expands on t<a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42083" target="_blank">he key economic effects of coronavirus</a> and encapsulates all of the changes seen in the global and domestic economies since our last edition back in December. Succinctly for Australia: we anticipate our economy will be materially weaker in 2020 than the RBA currently anticipates; importantly, this is only partly attributable to summer’s bushfires and the coronavirus outbreak. Further, for the global economy, risks are clearly skewed to the downside.
Developments in <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42131" target="_blank">global commodity markets</a> highlight both the immediate loss from coronavirus as well as the risks to global production. <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42113" target="_blank">Global FX markets</a> however view this uncertainty as being contained in Asia, arguably because central banks elsewhere are seen as both willing and able to act. This is particularly the case for the US which has received a solid bid as a safe-haven. While <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42132" target="_blank">the Australian dollar</a> has taken a tumble in line with commodities, it will likely find a base and could strengthen in late-2020 if the RBA does not counteract the US rate cuts we forecast with concerted monetary easing here. Absent this step, Australia’s competitiveness and corporate profitability could become impaired, reducing the probability of the lift back to trend GDP growth we currently anticipate in 2021.
ELLIOT CLARKE is a senior economist at Westpac 
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