A new 25-storey apartment tower proposed for Mercer Street would push Geelong’s western gateway skyline higher, with Morphy Birrell Property Group lodging plans for a project directly beside one of the city’s most significant heritage streetscapes.

The <a href="https://www.apartments.com.au/architects/fk-australia">FK</a>-designed development at <a href="https://www.apartments.com.au/new-apartments/65-67-mercer-street-geelong-vic-3220">65-67 Mercer Street</a> has now been referred to Victoria’s Planning Minister. The site sits opposite the Geelong rail corridor and immediately south of the heritage-listed St Peter and Paul’s Catholic Church and Ashby Hall precinct.

Rather than compete with the neighbouring ecclesiastical buildings, the proposal adopts a sculpted podium intended to reference the materiality and scale of the heritage context. Planning documents note the design draws cues from the “dark stone brick” church and surrounding masonry buildings, while the tower above transitions into a softer, curved form oriented toward Corio Bay and the Geelong waterfront.

<img alt="First look: Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct" data-entity-type="file" data-entity-uuid="b797d10c-d4a6-47af-b8df-1aeaa3b382be" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/public%20square.png?VersionId=QGIpcz1x1hKB6lQLl2iobyHqb6PS2Ztc" />

The development forms “Stage 5” of Morphy Birrell Property Group’s broader Mercer Street precinct strategy, following the completion of the 21-storey Miramar tower on Cavendish Street and several additional approved redevelopment stages nearby. Planning consultants Ratio said the proposal “represents an exemplary development outcome” aligned with the strategic ambitions for Central Geelong’s continued urban renewal.

The mixed-use project would replace an existing low-rise commercial building and surface parking area on the 3,320 sqm corner site. FK’s urban context report describes the proposal as a residential development comprising apartments, resident amenities, commercial space, and integrated landscaping positioned to maximise bay views and northern sunlight access.

Renders show a deeply articulated tower with curved balconies stepping above a lower masonry podium that frames a landscaped forecourt facing Mercer Street. The design intentionally preserves sightlines toward the adjacent church buildings, with the podium scaled to reinforce the heritage edge before the tower recedes upward.

<img alt="First look: Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct" data-entity-type="file" data-entity-uuid="2bdca91e-66f7-4ac7-8baa-2f93bd5b564e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/geelong%20site.png?VersionId=QOhbino4ZgzKYw5dW3QE14E.2yq.Sv87" />

The planning report highlights the site’s strategic location within 400 metres of key Geelong destinations including Cunningham Pier, the Geelong Station precinct, Deakin University, and the convention centre. Bus services run directly along Mercer Street, while the Corio Bay foreshore sits around 100 metres north of the site.

The proposal arrives amid accelerating redevelopment across central Geelong, where planning policy continues to encourage higher-density housing close to transport infrastructure and the waterfront. Mercer Street in particular has emerged as a focal point for taller apartment development due to its proximity to Geelong Station, the bay, and major civic infrastructure.

Joel Robinson

Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct

Development giant&nbsp;<a href="https://www.apartments.com.au/developers/hamton">Hamton</a> and joint venture partner Hostplus have revealed the next residential stage of their $3 billion Moonee Valley Park masterplan, lodging plans for 512 more apartments within the precinct on surplus racecourse land at 110 Wilson Street, Moonee Ponds.

The proposed development, dubbed&nbsp;<a href="https://www.apartments.com.au/new-apartments/trackside-house-110-wilson-street-moonee-ponds-vic-3039">Trackside Gardens</a>&nbsp;in the planning application, follows the <a href="https://www.apartments.com.au/news/vic/first-look-exclusive-hamton-and-hostplus-reveal-sixth-stage-of-moonee-valley-park-masterplan">recent unveiling of the sixth-stage Cox Place Precinct</a> and continues the long-running transformation of the Moonee Valley Racecourse into one of Melbourne’s largest urban renewal projects.

Positioned on the north-eastern edge of the racecourse adjacent to CityLink, Trackside Gardens will comprise three residential buildings rising between 61.8 metres and 86.4 metres within a heavily landscaped precinct shaped by Hamton’s Nature Based Cities framework.

The project forms part of the broader Moonee Valley Park redevelopment being delivered by Hamton, Hostplus and the Moonee Valley Racing Club, which is reshaping the 40-hectare racecourse site into a mixed-use neighbourhood with housing, retail, commercial space, hotels, parkland and community infrastructure.

Trackside Gardens sits separately to the recently proposed Cox Place Precinct, a five-building stage comprising around 1,100 residences, two build-to-rent buildings, two build-to-sell towers, retail, office space, and a hotel overlooking the racetrack. Together, the projects continue to accelerate housing delivery across the precinct.

<img alt="First look: Hamton expands Moonee Valley Park masterplan with 512-home Trackside Gardens precinct" data-entity-type="file" data-entity-uuid="5fc1941e-52d3-41c6-abc4-0f13fe8ae5ea" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/DA%20Edits%20%281%29.png?VersionId=7qwRHq5dcvXWNot2hNOgoQhN2GIWudNK" />

Designed by <a href="https://www.apartments.com.au/architects/dko-architecture">DKO Architecture</a> with landscape architecture by Tract, Trackside Gardens has been conceived as a botanical-style residential precinct prioritising canopy planting, communal green space, and vertical landscaping.

“The architectural vision for the proposed development centres around buildings in a botanical park setting that champions the important role of nature,” the planning submission states.

“The proposal incorporates principles of biophilic design, with landscape and environmentally sustainable development influencing the ultimate design response of the buildings and prioritising the ground plane to ensure a high amenity for both occupants and visitors.”&nbsp;

Trackside Gardens will deliver 512 apartments across the three buildings, alongside 518 basement car spaces and 523 bicycle spaces. Around 20 per cent affordable housing is proposed across the broader North East Precinct, equating to around 158 dwellings.&nbsp;

The affordable housing component will be concentrated within the Wilson East building, while the remaining apartments are expected to be delivered as build-to-sell residences.

Trackside Gardens has been designed around Hamton’s Nature Based Cities initiative, founded by Executive Chair Paul Hameister OAM in partnership with the University of Melbourne, Urbis, Ark Resources and Tract. The initiative promotes integrating higher-density urban development with significant biodiversity, tree canopy and landscape outcomes.

<img alt="First look: Hamton expands Moonee Valley Park masterplan with 512-home Trackside Gardens precinct" data-entity-type="file" data-entity-uuid="89353449-7b3c-42fd-8fd8-8bf64a5ef80f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_4.png?VersionId=X8jRt0P2L7fIWjLhfX6gPknXToXIBeLj" />

A comprehensive landscape strategy would introduce deep soil planting, vertical greening, communal gardens, and new pedestrian links throughout the site.

Planning documents state the development is targeting a 5 Star Green Star Buildings rating, a 7.5-star average NatHERS rating, and “Exemplary” Nature Based Cities certification.&nbsp;

The proposal joins an expanding pipeline of approved and proposed buildings within Moonee Valley Park, including the recently launched Eveline apartments and the approved Grandstand North and South towers.

Hamton has increasingly focused on precinct-scale, nature-led communities across Melbourne’s middle-ring suburbs, with projects spanning Hawthorn, Kew, and Moonee Ponds.

Hampton unveils Trackside Gardens, latest stage of $3 billion Moonee Valley Park masterplan

The Paul Gedoun-led <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Group</a> has achieved another milestone in its $1 billion transformation of Rainbow Bay on the southern Gold Coast with the completion of the company’s third project in four years, the $160 million <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a> residences.

Delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a> and designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker Architects</a>, Esprit buyers have now moved into the 94 apartments across two interconnected buildings at 217-227 Boundary Street.

The successful settlement of Esprit marks another astounding chapter in the S&amp;S story, which launched its highly successful Flow apartments three years ago and created its own ultra-luxury branded fingerprint on an area craving new luxury residences.

Most early purchasers have secured gains of well over $1 million since the project launched in 2021.&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172129]

S&amp;S Projects Founding Director Paul Gedoun said the completion of Esprit reflects sustained demand for premium apartments in tightly held coastal locations.&nbsp; 
&nbsp;&nbsp; &nbsp; 
“Esprit has attracted buyers seeking a combination of quality design, considered amenity and a location that is becoming increasingly difficult to replicate,” said Gedoun.

“We identified some years ago that Rainbow Bay is a unique market where supply of luxury residences is limited, and we see the settlements in Esprit further underpinning this thinking - that for both owner-occupiers and investors.”&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172174]

A key feature of the development is ‘Club Esprit’, a 1,000sqm residents-only rooftop level combining wellness and recreation, believed to be a first for the Gold Coast, and which is fast becoming a signature of the S&amp;S brand.

Positioned to capture views across Snapper Rocks, Rainbow Bay and the Tweed River, the rooftop includes a 25-metre lap pool, gym, yoga lawn, sauna and steam facilities, ice bath, private dining spaces, outdoor cinema and landscaped areas for residents.&nbsp;

<a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> Director Jayde Pezet, who led the sales campaign for Esprit and S&amp;S’s Flow and Awaken apartments, said the project’s performance reflects both the strength of the product and the depth of demand for premium apartments on the southern Gold Coast.&nbsp;

“In some cases, we’ve seen values double since launch, which is a clear reflection of how tightly held Rainbow Bay has become and the level of demand for well-executed projects in this market,” said Pezet.&nbsp;

“Buyers recognised early what S&amp;S Projects was delivering here, and that conviction has been rewarded as the project has progressed towards completion.”&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=214819]

Esprit offers a mix of two- three and four-bedroom apartments and sits within walking distance of the beachfront, cafés and local amenities, reinforcing its appeal as both a lifestyle and investment destination.

The project is the third completed by S&amp;S Projects in Rainbow Bay, following Flow Residences and Awaken Residences, which together have contributed to the suburb’s emergence as one of the Gold Coast’s most sought-after coastal pockets. &nbsp;

S&amp;S Projects is continuing its investment in the area with Radia, a $215 million development currently under construction.&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172175]

Gedoun said the completion of Esprit signals continued confidence in the southern Gold Coast market.&nbsp;

“We’ve seen strong interest in well-located, high-quality apartments, particularly in areas where future development opportunities are limited."

“That’s been a key factor in the performance of Esprit and the broader Rainbow Bay market”.

[smartcode_project_cta:default project_id=102921]

Owners move in as Esprit completes at Rainbow Bay

Few developers can boast a portfolio across South East Queensland's luxury markets quite like <a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic Property Group</a>.

The builder-developer, founded in 2004 by Managing Director Brook Monahan, has projects in planning, on the market, and under construction, from Burleigh Heads and Broadbeach to Kangaroo Point and South Brisbane.

With a pipeline exceeding $2 billion, Mosaic remains highly selective when it comes to development sites, having spent years refining its strategy around feasibility research and product planning. The group is set to continue growing into 2026 and beyond.

In Brisbane, Mosaic currently has three projects in the market. It is in the final release stage at <a href="https://www.apartments.com.au/new-apartments/the-bedford-by-mosaic-16-30-prospect-street-kangaroo-point-qld-4169">The Bedford</a> in Kangaroo Point, which is approaching complete sellout ahead of its late 2027 completion.

[smartcode_project:default project_id=134792 project_image_fid=328123]

Designed in collaboration with <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, The Bedford comprises 128 two- and three-bedroom residences. A selection of ultra-luxury Masterpiece Series Skyhomes, positioned across the top levels, offer expansive floor plans and sweeping views of the river and city.

High-end inclusions, such as natural stone benchtops, bespoke cabinetry, and Miele appliances, feature throughout all apartments, alongside the Rooftop Recreation &amp; Retreat Sky Terrace. This includes a resort-style pool with sun deck and loungers, spa, cold plunge pool, sauna, steam room, private dining room with a full kitchen, residents' lounge, multiple barbeque and relaxation zones, an outdoor viewing deck, and landscaped gardens with water features, all oriented to sweeping city and river views.

A gym with indoor and outdoor zones, and a golf simulator, further enhances recreational choice within the building.

[smartcode_project:default project_id=134792 project_image_fid=328119]

A defining feature of the development is its integrated mixed-use component, which will deliver Kangaroo Point's first major supermarket, alongside a café and liquor store, bringing long-awaited convenience to the peninsula.

Monahan says The Bedford represents the culmination of a near-decade-long journey, after first identifying the A-grade Prospect Street site in 2016. While they came close to acquiring it at the time, the site was ultimately purchased by Woolworths' development arm, Fabcot. The opportunity resurfaced in 2024 when the site, vacant for nearly three decades, was brought back to market.

Monahan says Mosaic projects often begin years before any formal plans are drawn. Their new South Brisbane development is no exception, with the site first earmarked in 2018.

"We aren't opportunistic," Monahan says. "Every site purchase is carefully considered. As seen with Kangaroo Point and South Brisbane, it can take years to eventuate. There are sites we're looking at now that we may not secure for several years."

[smartcode_project:default project_id=141711 project_image_fid=353495]

A similar story unfolded at <a href="https://www.apartments.com.au/new-apartments/the-carter-by-mosaic-77-linton-street-kangaroo-point-qld-4169">The Carter</a> in Kangaroo Point, opposite The Gabba. Like The Bedford, it is also approaching sellout of its 125 two- and three-bedroom apartments. The majority of sales are attributed to returning customers and referrals, with a balanced mix of investors and a strong majority of owner-occupiers.

BDA Architecture was again engaged to design the 22-storey building, which will feature a suite of wellness and lifestyle amenities, including a golf simulator and cinema, a commercial-grade gym, and a rooftop recreation level with a pool, steam room, sauna, cold plunge, teppanyaki bar, private dining spaces, and landscaped terraces.

Construction is on track for completion in mid-2027.

[smartcode_project:default project_id=151614 project_image_fid=362759]

Mosaic's latest offering is its most ambitious yet, boasting a rare, north-facing riverfront position on Montague Road in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/the-riversdale-by-mosaic-south-brisbane-91-montague-road-south-brisbane-qld-4101">The Riversdale by Mosaic</a> is a 39-storey tower comprising just over 200 residences and Masterpiece Series Sky Homes. Designed in partnership with Bureau Proberts, it will feature nearly 3,000 sqm of genuine, internationally benchmarked six-star, hotel-style amenities, including a wellness precinct, pool, gym, massage and treatment rooms, cinema, golf simulator, and extensive outdoor dining areas across a two-level rooftop deck.

Early works are underway, with full construction expected to commence in the second half of 2026, and an anticipated late 2029 completion.

[smartcode_project:default project_id=151614 project_image_fid=362759]

Since 2012 alone, Mosaic has completed more than $2 billion in projects and is set to deliver another $2 billion worth of developments, comprising hundreds of luxury apartments, each defined by Mosaic's signature standards of quality, detail, and delivery.

"We never arrive, there is no finish line," says Monahan. "Our ambition is to keep evolving what luxury means, creating design- and lifestyle-led residences in incredible locations, places people genuinely aspire to and want to live, homes that are loved deeply and endure long beyond their moment."

Mosaic's Midas Touch

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> (Urban) has broken ground at Keira Place, its new major mixed-use residential precinct in the heart of Wollongong CBD.

Held at 120-122 Smith Street, the groundbreaking marked the commencement of construction on Stage 1 of <a href="https://www.apartments.com.au/new-apartments/keira-place-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, with the opening of the new display suite. 
&nbsp; 
Keira Place is a State Significant Development that will deliver new housing supply, affordable homes and inclusive living options within walking distance of Wollongong’s CBD, coastline, transport, hospital and education precincts.

[smartcode_project:default project_id=144442 project_image_fid=369868] 
&nbsp; 
Stage 1 is now under construction and will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, along with activated ground-floor retail and commercial space. 
&nbsp; 
Urban Co-CEO Patrick Elias said the groundbreaking represented a significant milestone for Wollongong and reflected Urban’s long-term commitment to regional cities.

“Today’s groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong’s city centre,” Elias said. 
&nbsp; 
“Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection.”

[smartcode_project:default project_id=144442 project_image_fid=369869] 
&nbsp; 
Hon. Paul Scully MP, Minister for Planning and Public Spaces, Member for Wollongong said Keira Place is exactly the kind of development Wollongong needs – delivering new homes close to transport, employment and services, while supporting the continued growth and renewal of the CBD.

"This project reflects the Minns Labor Government's commitment to increasing housing supply in well-located areas." 
&nbsp; 
Wollongong Lord Mayor Cr Tania Brown said Keira Place would deliver lasting community benefits for the city. 
&nbsp; 
"Keira Place is a welcome addition to Wollongong's CBD delivering new housing, affordable homes and activated street-level spaces that will benefit our community for years to come," Brown said. 
&nbsp; 
"Urban Property Group's investment reflects the confidence that quality developers have in Wollongong's future, and I look forward to seeing this precinct come to life."

[smartcode_project:default project_id=144442 project_image_fid=369867] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a>, with interiors by <a href="https://www.apartments.com.au/interior-designers/dko">DKO,</a> Keira Place prioritises liveability and long-term performance, with landscaped shared spaces, generous apartment layouts and a pedestrian-friendly streetscape along Smith Street. 
&nbsp; 
Residents will have access to landscaped podium areas, communal rooftop amenities with views to Mount Keira and the Wollongong skyline, and convenient ground-level retail.

The development will have 10-year Latent Defects Insurance by Resilience Insurance.

[smartcode_project_cta:default project_id=144442]

Groundbreaking marks start of construction at Keira Place in Wollongong CBD

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>
GUEST OBSERVER
Owners or tenants of Victorian warehouse space should review their lease details after a recent decision by the Supreme Court of Victoria was subsequently upheld by the Court of Appeal.
If a tenant supplies goods or services which are then used in something else that is sold to the public, the lease may be governed by the Retail Leases Act 2003.
A recent case saw a warehouse tenant that provided cold storage and logistics services to other businesses in a dispute with the landlord over the nature of the lease and whether it was classed as ‘retail’.
In this case, CB Cold Storage Pty Ltd v IMCC Group Pty Ltd, a warehouse tenant provided cold storage and logistics services to other businesses from the leased premises. 
The permitted use of the premises under the lease was ‘Cold and cool storage warehouse and transport facility’.  
The Victorian Civil and Administrative Tribunal held that the lease was not retail as the tenant’s business did not provide goods or services to the ‘ultimate consumer,’ a person who uses goods or services to satisfy personal needs.
The tenant disagreed with this interpretation and appealed to the Supreme Court of Victoria.
The court found, on 7 February 2017, that the ‘ultimate consumer’ test was valid, but the ultimate consumer could be a person or company that uses those goods or services to produce something else for a business purpose.
For example, if a warehouse is used to supply car parts for an automobile manufacturer, then that warehouse tenant is supplying something to be used in the production of a car, and therefore the lease likely to be covered by the Retail Leases Act.
However, the tenancy would not be covered by the Act if the warehouse was used to supply car parts to a shop who then on sold them to the public, as the shop they were supplying was not using them, merely reselling.
There are some exceptions to this, such as if a tenant is a listed company or its subsidiary. 
If the lease does not permit the use of the premises for retail purposes, a breach of lease may be present, but that does not affect the retail nature of the lease.
The landlord appealed the February decision to the Court of Appeal, which dismissed it on 5 July 2017, noting the following features combined led to the finding that the ultimate consumer test had been satisfied and that the lease was a retail lease:
<ul>
<li>Services were used by the Tenant's customers who paid a fee</li>
<li>Any person could purchase the services if the fee was paid</li>
<li>The Tenant's business was open during normal business hours</li>
<li>The Tenant's customers did not pass on the services to anyone else</li>
</ul>
What does this mean?
<ul>
<li>Tenants may not be charged land tax. They may also be able to recover tax from the landlord retrospectively.</li>
<li>Generally, the term of the lease must be for at least five years.</li>
<li>A rent review clause may not include a “ratchet” which stops the rent falling due to market conditions. Any extra rent paid due to a ratchet clause may be recoverable from the landlord.</li>
<li>The landlord is obligated to provide a detailed “Disclosure Statement” to the tenant. Non-provision or inaccurate information may result in the tenant having the right to withhold rent or to terminate the lease. </li>
</ul>
Tim Kelly is a partner at Rigby Cooke Lawyers and has more than 35 years of legal experience. He can be contacted <a href="https://www.rigbycooke.com.au" target="_blank">here</a>.
 
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jchancellor-FAypfDUnLy

Could your warehouse lease now be a retail lease?

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Following the recent sale of the iconic Exchange Centre building at 20 Bridge Street for $335 million, its neighbour at 10 Bridge Street is also set to hit the market, through Savills.
Exchange House at 10 Bridge Street is being listed with price expectations of more than $130 million, following several off-market offers that prompted vendor Coweley Australia (part of ST Real Estate Group) to take the B grade commercial office to market. 
Last month, offshore investor Early Light International Ltd Group secured 100 percent interest in the Australian Exchange Centre for $335 million on a fully leased 4.5 percent yield.
The property is being marketed by Graeme Russell, Simon Fenn and Ben Azar of Savills Australia and Rick Butler and Josh Cullen of Inc RE. Simon Fenn and Ben Azar were also part of the Exchange Centre building.
As for the current listing, the 14-storey office building is fully leased with a Weighted Average Lease Expiry (WALE) of 3.5 years and a four star NABERS rating.
Graeme Russell of Savills said the building was stripped back to its core in 1997/98 and fully refurbished.
“10 Bridge Street is an iconic building in the heart of the city, adjacent to the Stock Exchange and offers a new opportunity to capitalise on the strong Australian market, in particular, the Sydney CBD,” he said.
“Just like 20 Bridge Street, we have already received a lot of unsolicited global and local interest in 10 Bridge and believe potential buyers will range from Hong Kong and Singaporean groups to large domestic private investors and a number of REITS.”
The property is 100 per cent leased with high-profile tenants including ASG Group, Kessler Financial Services Australia, Centrepoint Services and Boeing Australia Holdings.
The property is moments from Circular Quay, Wynyard Train station and the George Street Light Rail development and within close proximity to ANZ, Westpac, NAB, Commonwealth Bank and major hotel groups including The Four Seasons, Intercontinental, and the Marriott.
The property will be sold via an international expressions of interest campaign commencing in August.
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jonathanchancellor-7SQnKwU6yx

Exchange Centre neighbour set for listing through Savills with $130 million expectations

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A freestanding two-level building in leafy Lygon Street on the edge of the Melbourne CBD remains listed for sale.
The <a href="https://www.realcommercial.com.au/property-retail-vic-carlton-502417766" target="_blank">232 Lygon Street</a> property is being offered with vacant possession through commercial real estate firm CBRE after last month's sale failed to yield a buyer.
Lygon Street is also a synonym for ‘Little Italy’, where Melbourne's cafe culture was born.
The 245 sqm landholding has further development potential subject to council approval.
The property is surrounded by some of Melbourne’s best eateries and there are plenty of boutique retailers.
According to the description, the street offers 7 day/24 hour trading conditions due to high volumes of pedestrian traffic driven by shoppers, tourists and students.
The listing agents are Sandro Peluso, Rorey James and Nic Hage of CBRE.
Its previous sale price was $495,000 in 1985, according to CoreLogic RP Data.
A recent sale in the tightly held precinct were two freestanding corner adjoining buildings at <a href="https://www.realcommercial.com.au/property-retail-vic-carlton-501668953" target="_blank">242 Lygon Street</a>.
The deal value was in 2015 at $6.32 million through Colliers International.
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/10/July12CommPropLygonSt1.jpg" alt="">
The property is fully leased to Stotts College at a net rent of $338,000 pa plus GST.
The lease is for five years with options for two further extensions and fixed 4% annual increases.
Last year, a retail space at <a href="https://www.realcommercial.com.au/property-retail-vic-carlton-501937130" target="_blank">265 Lygon Street</a> sold for $3.96 million, according to CoreLogic RP Data.
The shop was on a six-year lease providing an annual income of $148,567 plus GST and fixed annual rental increases.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/10/LygonSt2.jpg" alt="">
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Lygon Street property listed for private sale

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Wealth management group Fat Prophets is set to launch a listed investment fund with a global focus on real estate investment trusts around the world in a bid to diversify from the local sharemarket, which has dropped 9 percent over the past month.
The group, which has offices in Sydney, London and Auckland, seeks to raise up to $220 million, according to The Australian.
The S&amp;P/ASX 200 A-REIT index has taken a 9 percent hit in the past month as investors fret about a property market slowdown and the negative commentary around it, besides weak wages growth in retail and the looming entry of Amazon.
Fat Prophets said it would allow Australian investors access to global REITs, which would otherwise require direct investing in international markets or unlisted funds.
“This new fund provides Australian investors the opportunity to diversify their equity holdings in REITs outside of Australia,” Fat Prophets chief executive Angus Geddes was quoted as saying by The Australian.
“They can now have an interest in the entities that own, manage and develop some of the most iconic assets around the world.”
The portfolio will be managed by Simon Wheatley, a real estate veteran with more than two decades of experience in listed real estate.
Fat Prophets said the fund could help investors reduce volatility in their portfolio. 
The LIC structure would likely provide more liquidity than a direct real estate investment, with much lower entry and exit costs, they said. 
The fund will be actively managed, typically holding 70 to 90 securities, with the ability to hold up to 15 percent in cash.
Units are on offer for $1.10 each, with the offer closing on September 1 and units to start trading on the ASX on September 13.
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Fat Prophets floats REIT-focussed listed fund

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The office market in Canberra has experienced an oversupply in recent years, driven by high vacancy levels due to the Commonwealth government policy and the demand for quality high-end space, say valuation firm Herron Todd White in their July office market update. 
As a consequence, the lower end price of the market felt the impact as a flow on effect from the abundance of space which in turn led to downward pressure on rents and increases in incentives available to tenants. 
The continuation of low interest rates provided the opportunity for those looking to invest or acquire smaller unit properties for under $500,000. Primary locations include the City, Kingston, Manuka and Braddon and secondary locations are Deakin, Turner and Phillip or one of the town centres, Belconnen, Gungahlin and Tuggeranong, says HTW.
This class of property comprises small office units ranging from 50 square metres to 200 square metres in units plan complexes.
An example being <a href="https://www.realcommercial.com.au/property-offices-act-griffith-502070558" target="_blank">Unit 1/22 Franklin Street Manuka</a> which sold in June 2017 for $276,000 with an area of 55 square metres showing $5,018 per square metre.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/13/HTWManuka.jpg" alt=""> 
Manuka is an inner south primary boutique shopping centre located within five minutes of the Parliamentary Triangle with a sought after office precinct. Unit 60 and 61/18 Flinders Way Manuka sold for $150,000, each being 55 square metres and 54 square metres respectively showing $2,727 per square metre and $2,777 per square metre and a yield of 7.5%. The units were leased and included two car spaces. 
Secondary locations include Deakin, Turner and Philip, an example being Unit 2/42 Geils Street, Deakin sold in April 2017 for $310,000 being a 83 square metre ground floor unit with a fitout in place. This showed $3,735 per square metre. Deakin is a secondary area occupied by medical and association tenants and private organisations. 
Owner-occupiers are dominating the market at present with access to finance and low interest rates providing the opportunity to purchase property via a superfund and obtain an asset for the future. 
The market performance is currently steady with values holding in most areas except Tuggeranong, where supply is higher than demand and some new mixed use developments are under construction.
"As we approach the later half of 2017 and beginning of 2018 the market should start to show signs of growth due to a number of Commonwealth Government lease deals coming to fruition and the opportunity for rental deals to provide some growth for the next few years," say HTW in the review. 
No new developments are due in the short term which will put pressure on the current space available. Until the mooted building projects re-commence there is no new space available in the ACT.
However, space is available in most areas at the lower end of the price range within the $250,000 to $500,000 range primarily in mixed use developments at ground and first floor levels, conclude HTW.
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Canberra's lower end of office market faces oversupply: HTW

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Pradella's $1 billion riverside West End development in Brisbane has two new tenants, which includes a restaurant.
Restaurateur Amit Maharaj will open his second venue in West End, having leased a 55 sqm space in the latest stage of Riverside West End for a new restaurant.
The second tenancy has been taken up by convenience operator NightOwl, which has taken up a 150 sqm tenancy.
Table 26 and NightOwl are located on the corner of Roger and Duncan Streets in West End.  
Gardens at Riverside West End, includes four buildings - Arbor, Parc, View and Rise -  with a mix of one, two and three bedroom apartments.
A few apartments remain for sale in the Gardens priced from $399,000.
Maharaj’s new restaurant, Table 26, will launch in August.
He has owned and operated the popular West End Park Cafe since 2003 and said his vision for Table 26 was to create a new 'local venue', which would operate from breakfast through to dinner.
He said the restaurant had been inspired by his father, who passed away in 2009.
Maharaj said he was drawn to Riverside because of its prime location in West End, which had become a favourite for Brisbane foodies and boasted a fast-growing local population.
NightOwl marketing manager Geoff Herbert said the new convenience store offers a broad range of products, including healthy fast food and barista style coffee.
The Riverside West End NightOwl will be the franchise's 69th store in Queensland and its eleventh across the Brisbane CBD.
Pradella director Kim Pradella said Table 26 and NightOwl would add to the lifestyle and convenience on offer at Riverside West End and the eclectic mix of restaurants, cafes and retailers in the area.
Another $75 million complex of 80 terraces is coming up in Brisbane's West End.
 
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Brisbane's West End development signs up two new tenants

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A leading beauty firm has leased space in a laneway in the Melbourne CBD.
The shop at <a href="https://www.realcommercial.com.au/property-retail-vic-melbourne-502310898" target="_blank">22 Russell Place</a> has been leased by Nailist by Seepair Pty Ltd.
The high-end nail and beauty services provider will take up the CBD space on a sublease, at a net annual rent of $78,000 plus outgoings and GST.
The deal was negotiated by Fitzroys’ Terence Yeh, who acted on behalf of I Love Ugly Pty Ltd.
The 53 sqm shop has frontage to Russell Place and is in the Melbourne CBD’s retail core, between Bourke Street and Little Collins Street.
“This laneway gem generated strong interest from a variety of businesses, including fashion retailers, cosmetic retailers, cafés and boutique bars all looking to secure a presence in the heart of Melbourne’s CBD, and take advantage of the high exposure afforded by the frontage.”
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j.ballantyne1990-6AQqhLzZaK

Beauty firm takes prime space in Melbourne's CBD

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A leased warehouse/office property in Melbourne’s Campbellfield has just sold to a local investor for $1.8 million and strong yield of 7.95 percent.
The <a href="https://www.realcommercial.com.au/property-industrial+warehouse-vic-campbellfield-502355778" target="_blank">57-65 Paulson Road</a> property generates an annual rental of $143,170 p.a. net. The property is on a five-year lease with another five-year option.
The 2,600 sqm building sits on a land area of 4,180 sqm and has a side hardstand/yard area, multiple roller door access and first floor office space.
At the purchase price, the building rate works out to be $692.31 per sqm. 
The property is located close to main roads and major arterials including Sydney Road, Mahoneys Road, Hume Freeway, Western Ring Road and Tullamarine Freeway. 
The selling agents were Leo Mancino and Bradley Ellul of CVA.
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Warehouse in Melbourne's Campbellfield snapped up for $1.8 million

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Melbourne’s median house price has increased for the fifth consecutive quarter.
New REIV data shows the metropolitan Melbourne median house price rose 2.9 per cent in the three months to June 30, to $822,000.      The city’s middle and outer suburbs were the main growth drivers in the June quarter with both regions up by more than three per cent.   Top performing suburbs were widespread across Melbourne and at both ends of the market – from Broadmeadows and Roxburgh Park in the north to Malvern East and Toorak in the south-east.   Croydon in the outer east experienced the city’s largest quarterly increase, up more than 20 per cent to a median of $810,000.     REIV Acting President Richard Simpson said Melbourne’s property market continues to perform strongly, boosted by a buoyant auction market.   “It has been an exceptional year for the property sector with numerous auction records falling in the first half of 2017,” he said.   “More than 10,300 homes have gone under the hammer in the June quarter – a record for this time of year.   “Price growth is being supported by a number of key factors, including unprecedented population increases, record low interest rates and strong buyer demand.   “It’s certainly a sellers’ market at present with strong competition for homes across the city, particularly in Melbourne’s more affordable areas. “Half of the suburbs making the top growth list this quarter are priced below the citywide median, suggesting buyers continue to seek value further from the city.”   Mr Simpson added that the city’s apartment sector had also performed strongly in the June quarter with the metropolitan Melbourne median increasing 4.3 per cent to $606,500.   “Contrary to popular opinion, Melbourne’s apartment market has been growing steadily for the past year with strong price growth in inner city areas.”   House prices in regional Victoria rose strongly for the second consecutive quarter, up two per cent in June to a record high $385,000.
<h3>June Quarter 2017 Metropolitan Median Prices</h3>
Prices for regional Victoria are also <a href="https://www.reiv.com.au/RESEARCH/Sales-Data/Median-Prices-in-the-Regions">available</a>.
<table dir="ltr" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td>Metro Melbourne</td>
<td>Jun-17 Quarter</td>
<td>Quarterly Change</td>
<td>Mar-17 Quarter</td>
<td>Annual Change</td>
</tr>
<tr>
<td>House</td>
<td>$822,000</td>
<td>2.90%</td>
<td>$799,000</td>
<td>10.30%</td>
</tr>
<tr>
<td>Unit</td>
<td>$606,500</td>
<td>4.30%</td>
<td>$581,500</td>
<td>7.70%</td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Inner</td>
<td>Jun-17 Quarter</td>
<td>Quarterly Change</td>
<td>Mar-17 Quarter</td>
<td>Annual Change</td>
</tr>
<tr>
<td>House</td>
<td>$1,468,000</td>
<td>-2.10%</td>
<td>$1,500,000</td>
<td>14.20%</td>
</tr>
<tr>
<td>Unit</td>
<td>$630,500</td>
<td>6.50%</td>
<td>$592,000</td>
<td>6.30%</td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Middle</td>
<td>Jun-17 Quarter</td>
<td>Quarterly Change</td>
<td>Mar-17 Quarter</td>
<td>Annual Change</td>
</tr>
<tr>
<td>House</td>
<td>$991,500</td>
<td>3.20%</td>
<td>$961,000</td>
<td>10.00%</td>
</tr>
<tr>
<td>Unit</td>
<td>$681,000</td>
<td>6.70%</td>
<td>$638,500</td>
<td>7.70%</td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Outer</td>
<td>Jun-17 Quarter</td>
<td>Quarterly Change</td>
<td>Mar-17 Quarter</td>
<td>Annual Change</td>
</tr>
<tr>
<td>House</td>
<td>$642,000</td>
<td>3.70%</td>
<td>$619,000</td>
<td>9.80%</td>
</tr>
<tr>
<td>Unit</td>
<td>$490,000</td>
<td>4.30%</td>
<td>$470,000</td>
<td>8.70%</td>
</tr>
</tbody></table>
*All quarterly median prices are seasonally adjusted and quarterly. Annual change is based on rolling annual figures.
<h3>Metropolitan Median Prices Over Time</h3>
The graph below depicts median house and unit prices in Melbourne over the past decade in seasonally adjusted terms. <a href="https://www.reiv.com.au/getattachment/PROPERTY-DATA/Median-Prices/Pg13_Median-price-Metro_Sep-Q-2015.png.aspx"><img src="https://www.reiv.com.au/property-data/premium-research/research-bulletin/metro-median-jun-2017.aspx" alt=""></a> Recent sales in Croydon at around its new median included the four bedroom home at <a href="https://www.realestate.com.au/sold/property-house-vic-croydon-125704550" target="_blank">40 Cherry Tree Grove, Croydon</a> for $865,000 (below).
<img src="https://www.urban.com.au/images/2017/07/18/Screen%20Shot%202017-07-18%20at%209.40.50%20AM.png" alt="">
The three bedroom home at <a href="https://www.realestate.com.au/sold/property-house-vic-croydon-125633226" target="_blank">9 Joffre Street, Croydon</a> (below), recently sold for $810,000.
<img src="https://www.urban.com.au/images/2017/07/18/Screen%20Shot%202017-07-18%20at%209.43.28%20AM.png" alt="">
<h1 class="property-info-address"> </h1>
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Melbourne’s median house price up for fifth consecutive quarter

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At long last, I can say that Perth has moved into a recovery phase, after four tough years.
For the past 12-18 months, many industry people with a vested interest have been trying to talk up the market, creating false dawns of market revival.
I’ve been awaiting clear evidence and a month ago I wrote: “I continue to seek confirmation that the worst has passed for the Western Australia economy and the Perth residential property market. There are growing signs that this is the case.”
Now, having completed the research for the Winter Edition of The Predictor Price Index, I feel confident to confirm that Perth is over the worst and is on the way back.
The research found something that’s been missing from the Perth market for the past few years: suburbs where sales activity is growing and there are some prospects for prices to stop falling.
Our latest survey identified 12 growth markets, a rising number of suburbs with consistent sales and fewer “danger markets”. This is the best result for Perth since mid-2015.
Four precincts dominate this brighter picture of the Perth market: the Wanneroo and Joondalup LGAs in the far north and two solid middle-market areas, the Stirling and Melville LGAs.
Wanneroo is the standout location in the current Perth, providing four of the 12 suburbs with rising markets - Alkimos, Carramar, Clarkson and Yanchep.
Another northern precinct, the LGA of Joondalup, has been the steadiest area of Perth during the downturn and it continues to show solidity. It has seven suburbs with consistent sales rates - including Duncraig, Heathridge, Joondalup, Ocean Reef and Kingsley - while Sorrento is now a growth market in this precinct.
The municipality of Stirling stands out for sterling performance in the downturn. Two suburbs have rising markets - Carine and Innaloo - while this LGA has eight suburbs with consistent sales.
Another leader of Perth’s fightback is the Melville LGA in the southern suburbs. Both Kardinya and Leeming now have increasing sales activity, while four other suburbs are consistent performers.
Suburbs which have maintained solid sales rates amid the prolonged downturn across the Perth metropolitan area are noteworthy. They include Claremont, which has recorded between 55 and 67 sales every quarter for the past three years. Hamilton Hill has delivered between 58 and 69 sales every quarter for three years, while Willeton has managed between 80 and 88 sales, quarter after quarter, in the same time frame.
Another positive sign for Perth is the reduction in the number of danger markets (where sales activity has dropped to levels well below what might be considered acceptable in a “normal” market).
If the current trend continues, danger markets may disappear from the Perth property scene later in the year.
The existing declining markets are spread across the Perth metro area, but the area of greatest concern remains the inner-city precinct dominated by apartments.
These locations have high vacancies at a time when sales activity is still trending down. The worst-placed markets are East Perth, central Perth and Como.
The vacancy rate is 5% or higher in these locations and sales are well below the levels of a “normal” market. 
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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