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

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WeWork, one of the world's fastest-growing co-working businesses, has arrived in Melbourne, following on its entry into Sydney last year. 
The co-working firm is leasing into the iconic art deco building at 401 Collins Street owned by fund manager Impact Investment Group, taking the building’s rooftop and the entire nine floors of commercial space, said a media release.
New York-based WeWork was founded in 2010 and has grown fast to set up more than 120 shared work spaces across 32 cities globally. The firm opened its first office at Sydney’s 5 Martin Place in the heart of the city’s central business district last year. 
Its arrival in Melbourne is part of a rising trend of co-working spaces in the city. Last year, Hub Australia opened Victoria’s largest coworking space, Hub Southern Cross, in Melbourne, spread across 3,900sqm and two floors of the historic Mail Exchange building.
Liberman-family backed Impact Investment Group (IIG) bought the building for $32 million in 2014 and is currently refurbishing it. The makeover includes restoration of 401 Collins’ heritage stone front façade, mechanical upgrades and improving its energy efficiency.
The 11-storey building was once commandeered by General Douglas MacArthur as his headquarters for US Army forces in World War II.
“This marks the start of a new era for 401 Collins. We’re proud to be setting up the next chapter in this remarkable building’s life,” said Impact CEO Chris Lock.
“It shows that these pre-war buildings, built to endure as they were, can still contribute to Australia’s move towards lower carbon emissions.”
Newly claimed space on the rooftop and in the basement will see the net lettable area (NLA) increase by 360 sqm, bringing the total NLA to about 6,291 sqm.
WeWork’s managing director, Asia Pacific, Ole Ruch, said Melbourne is home to startups, big businesses, and creative entrepreneurs “pioneering innovation” nd it was a “natural next step for WeWork”. 
The Hon Philip Dalidakis MP, Victorian Minister for Small Business, Innovation and Trade said, "We welcome global co-working provider WeWork to Melbourne's thriving startup community.”
IIG is also in talks with two Melbourne restaurateurs with plans to establish a new hospitality brand on the ground floor.
Current tenant, Roy Morgan Research Ltd (RMR), is expected to move out of the property in late 2017. 
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prateek24-ezbwHMbNAk

Co-working giant WeWork expands into Melbourne

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The Greenwell Point Hotel and development site has been placed on the market.
There are two components to the site:
<ol start="1">
<li>The Greenwell Point Hotel, subject to a lease terminating in June, 2022. Annual Net Rental as at June, 2017 is $361,694 + GST with annual increments of 3% thereafter. The land size of the hotel component is 3,408 square metres. The hotel includes 15 gaming entitlements.  </li>
<li>The second component is vacant land adjacent to the hotel. The land size of this component is 1,853 square metres. This component is not subject to the lease.  </li>
</ol>
The real attraction of the asset is the fact that a purchaser has rental income while preparing for the development.
Brokers appointed to sell the hotel are Manenti Quinlan and Associates and Thomas Cooper and Company.
Gerry Quinlan stated “It is rare to find a location where a hotel is unopposed. This is the case at Greenwell Point.”.
The future of the area is secured by the Shoalhaven Tourism Masterplan that sets out a clear vision for the future.
There is already an approval for a $25 Million tourism development at Greenwell Point which underpins the quality of the location.
Richard Thomas of Thomas Cooper and Company stated, “The value of the asset is underpinned by the unique location, the potential development, the valuable 15 gaming entitlements and current rental stream.”.
The region has a population base of over 100,000. It is the gateway to the South Coast.
The region has a strong commercial hub along with ever-growing tourism.
The proximity to Sydney, Wollongong and Canberra provide a large population base on which to draw.
The sale is by expressions of interest which close on Thursday 6th April, 2017.
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j.ballantyne1990-6AQqhLzZaK

Greenwell Point hotel development site hits the market

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APRA reported that residential housing loan ADI exposures continued to power on, up to $1.49 trillion in the December quarter (and beyond $1.5 trillion in January).
Owner-occupied loans totalled $971 billion, comprising 65 percent of outstanding residential property exposures, an increase of $86.5 billion or 9.8 percent from the prior year.
Meanwhile, the total of outstanding investor loans was $522.4 billion (the balancing 35 per cent of outstanding exposures), for an increase of $23.5 billion or 4.7 percent from last year.
New investment loan approvals were down by 5.8 percent from the prior year, yet still accounted for a punchy 34.2 percent of total new residential loans. 
Loans to investors appear very likely to be the target of a crackdown as 2017 rolls on.
As I looked at in a little more detail here, each of the major lenders appear likely to be approaching the speed limit for the growth in their mortgage books, including those that have lodged revisions to historical figures (since these will be adjusted for). 
<div id="post-body-5935845614051499789" class="post-body entry-content">
<a href="https://www.propertyobserver.com.au/images/2017/03/06/A1.jpg" target="_blank">Click to enlarge</a> <div class="separator"> </div>
<div class="separator"><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/2017/03/06/A1.jpg" alt=""></div>
 <div>Impairment rise for ADIs</div>
<div> </div>
<div>I'm not going to provide much detailed analysis or opinion on this site, but it is worth noting the following from APRA's reported headline figures for ADIs.</div>
<div> </div>
<div>-impaired facilities and past due items as a proportion of gross loans and advances was 0.92 percent as at Q4 2016 (an increase from 0.86 percent in the prior year);</div>
<div> </div>
<div>-specific provisions hit $7.3 billion at Q4 2016, an increase of $0.8 billion or 12.9 percent from the prior year; and</div>
<div> </div>
<div>-specific provisions as a proportion of gross loans and advances was 0.24 percent at Q4 2016, an increase from 0.22 percent in the prior year.</div>
<div> </div>
<div>To summarise: 
</div>
<div class="separator"><a href="https://www.propertyobserver.com.au/images/2017/03/06/APRA.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><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/2017/03/06/APRA.jpg" alt=""></div>
<div> </div>
<div>Source: APRA </div>
<div> </div>
<div>This should demand your attention, since it indicates that the cyclical low for impairments has now passed. </div>
 <div>Change to new lending</div>
<div> </div>
<div>APRA's figures show that riskier "low doc" and other non-standard lending now comprise only a small and decreasing share of the residential mortgage market, which is a positive development.</div>
<div> </div>
<div>Furthermore, most new loans have a loan to value ratio (LVR) of 80 per cent or lower, meaning that - theoretically at least - the majority of new buyers have a significant buffer built in to their purchase. </div>
<div class="separator"> </div>
<div class="separator"><a href="https://www.propertyobserver.com.au/images/2017/03/06/A3.jpg" target="_blank">Click to enlarge</a></div>
 <div class="separator"><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/2017/03/06/A3.jpg" alt=""></div>
<div> </div>
<div>A potential challenge to this case is that in many instances those using 20 percent deposits have likely sourced their deposits from existing residential property assets, and therefore the risk in such loans may be higher than it appears at first blush. </div>
<div> </div>
<div>Interest-only loans, while accounting for a smaller share of the market than has previously been the case, still represent a very significant chunk of new lending at 36.6 percent (even if the total of interest-only lending for the quarter of $162 billion represents a decrease of 10.5 percent from the prior year).</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/03/06/A2.jpg" target="_blank">Click to enlarge</a></div>
 <div class="separator"><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/2017/03/06/A2.jpg" alt=""></div>
 <div>The inherent risk here is that when these loans reach the end of their interest-only period the repayments may jump higher in the event that the loan cannot be rolled over into a new interest-only period, a point which has aroused the scrutiny of short sellers.</div>
<div> </div>
<div>Summarily, residential property exposures now comprise a very significant sum of interest-only mortgages in Australia. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/03/06/PARA2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><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/2017/03/06/PARA2.jpg" alt=""></div>
<div> </div>
<div>Source: APRA</div>
<div> </div>
<div>If mortgage rates were to rise, of course, then these risks may be multiplied. </div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>.
</div>
</div>
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pwargent-M4siyDbqQY

APRA reports non-performing loans on the rise

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The total land value for the Illawarra region has increased over the 12 month period to 1 July 2016 by 10.4 percent from approximately $68.49 billion to $75.59 billion, according to the latest report from the Valuer-General.
The Report on NSW Land Values at 1 July 2016 found that there was an overall increase in land values of 10.7 percent for residential properties. This is slightly more than for Wollongong residential land values which generally increased between 7 percent and 10 percent. The highest increases in the region were recorded in the Wollondilly, Wingecarribee and Shoalhaven areas.
Residential land values in Milton increased by 46 percent due to the area's popularity as a weekend tourist destination and its affordability relative to nearby beachside localities. Similarly,the value of residential land in Hilltop and rural residential land east of Wilton increased by around 40 percent.
Overall, commercial land values in the Illawarra region increased by 8.2 percent. However, commercial land values increased by 36 percent in Tahmoor, and by 58 percent in Appin.
Industrial land values showed an overall increase of 5.8 percent. Land values in the major industrial areas of Wollongong generally showed increases of between 4 percent and 11 percent, while properties in the smaller centres of Bomaderry, Huskisson and Sussex Inlet showed increases of approximately 10 percent.
Rural land values varied across the Illawarra region, but showed an overall increase of 14 percent. Rural land values in the Shoalhaven, Wollondilly and Wingecarribee LGAs were influenced by a growth in residential development and demand for rural small holdings. These areas experienced overall increases of between 11 percent and 21 percent.
Land values in the Tahmoor/Thirlmere locality showed even stronger increases of between 30 percent and 40 percent.
For more information including interactive online land value summaries for all LGAs and 14 regions covering the state go to <a href="https://www.valuergeneral.nsw.gov.au" target="_blank">www.valuergeneral.nsw.gov.au</a>
<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/2017/01/24/nsw-5.jpg" alt="">
Property Observer found a 10 acre lot, <a href="https://www.realestate.com.au/property-residential+land-nsw-milton-201460146" target="_blank">107 Spring Valley Way, Milton</a>, (above) on the market for $695,000. It is fully fenced with tar road access, a dam and underground power.
A parcel of land sized 100 acres, <a href="https://www.realestate.com.au/property-residential+land-nsw-milton-201699910" target="_blank">669B Woodburn Road Milton</a>, (below) has 40 acres of cleared land, 4 large dams, a shed and sealed driveway and is on the market for $895,000.
<img src="https://www.urban.com.au/images/2017/03/3/Screen%20Shot%202017-03-03%20at%209.18.24%20AM.png" alt="">
<h3 class="address"> </h3>
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jonathanchancellor-7SQnKwU6yx

Milton residential land values jump 46 percent: Valuer-General

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A three bedroom apartment styled by Newstead Interiors fronting the Brisbane River sold within a week.
The apartment, located on the podium level of Brisbane's Waters Edge, in the West End is sized 220sqm with a 62sqm wrap-around terrace and 13 metres of river frontage.
The residential development features a 25 metre heated infinity pool, barbecue terrace, gymnasium and private residents' lounge. 
Virginia De Luca, director of Newstead Interiors, says the apartment has been 'themed' to suit its surroundings.
"The Brisbane lifestyle is centred around the river, so we wanted to extend the apartment's connection to the river through the use of different colours, textures and materials," she said.
"The end result is an abode that is classic yet contemporary, with earthy tones throughout to match new Limed Oak American floors, enhanced by splashes of blue hues as a visual reminder that this apartment is framed by the water.
"The styling of the apartment was guided by how we imagined the new owner would want to experience their home, which led us to include soft touches like additional seating and throws to encourage 'rest and retreat' areas throughout the property.
"We have opted to keep the overall palette of the apartment neutral, light and fresh to allow the buyer to put their own stamp on the apartment."
Kim Pradella, director of developer Pradella said they wanted to redefine the concept of a riverfront home. 
"The apartment is elevated to ensure privacy and to provide spectacular 180 degree panoramic views across the river, while allowing residents direct private access to surrounding parklands, riverfront pathways and exclusive resort-style amenities.
"This apartment is truly one of a kind and it has been finished by Newstead Interiors to a standard befitting the final podium riverfront residence at Waters Edge."
<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/2017/03/07/700_interior.jpg" alt=""> 
A second apartment (above) is now on the market.
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Rare Brisbane riverfront residence sold

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The first W Hotel in Melbourne will be part of Cbus Property’s $1 billion plus mixed-use luxury precinct Collins Arch in 2020. 
W Melbourne at Collins Arch will be located in the eastern tower of the dual tower project, which will also have commercial office space, retail, hospitality and luxury residential apartments. 
The hotel will have 294 guestrooms across 15 levels, including 40 suites. Other facilities include a cocktail bar, restaurant, day spa, pool, gym, conferencing and ballroom facilities. 
Melbourne interior design practice Hachem has been appointed to design the hotel’s interiors. 
Designed in collaboration by Woods Bagot and New York practice SHoP architects the development will feature the city’s first sky bridge that links the dual towers. 
The hotel deal, brokered by Michael Simpson of Savills Australia and New Zealand, involved the sale of the hotel component of Collins Arch to Daisho Development Melbourne. 
He said the Collins Arch hotel deal was hotly contested by investors, with a number of luxury brands also showing interest.
“The resulting partnership between Cbus Property, Daisho Development Melbourne and Marriott International has been a really positive example of collaboration with all parties working together to deliver an outstanding luxury hotel and a city-enhancing project for Melbourne,” he said. 
 
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Whatever/Whenever! Melbourne to get its first W Hotel in 2020

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GUEST OBSERVER
The Reserve Bank of Australia (RBA) released its Financial Aggregates figures for January 2017.
Although housing credit continued to chug along in notching growth of 0.5 per cent in the month, total credit growth sagged to just 0.2 per cent due to negative results for the business and personal sectors.
Housing credit for investors continued to rise to 6.6 percent across the year to January, suggesting that further hikes may be in the post for investor loans.
<a href="https://www.propertyobserver.com.au/images/2017/03/02/RBA1.jpg" target="_blank">Click to enlarge</a>
<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/2017/03/02/RBA1.jpg" alt="">
Total credit growth was 6.4 percent, while broad money growth was 7 percent.
<a href="https://www.propertyobserver.com.au/images/2017/03/02/RBA2.jpg" target="_blank">Click to enlarge</a>
<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/2017/03/02/RBA2.jpg" alt="">
Deposit growth has strengthened considerably as banks look to shore up their capital. 
Even term deposits, understandably out of favour for some time, are recording growth at a double digit pace, with some accounts set to offer bonus interest on larger balances. 
<a href="https://www.propertyobserver.com.au/images/2017/03/02/RBA3.jpg" target="_blank">Click to enlarge</a>
<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/2017/03/02/RBA3.jpg" alt="">
Switcheroo
The total value of outstanding credit has doubled over the past decade to $1.64 trillion.
The exact split of loan purpose between owner-occupier and investor credit remains murky, with a net value of $49 billion having been switched away from investment loans since July 2015.
This reflects the interest rate differential between loan types, but note that the credit growth figures by loan type have been adjusted for the net value of switching. 
<a href="https://www.propertyobserver.com.au/images/2017/03/02/RBA4.jpg" target="_blank">Click to enlarge</a>
<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/2017/03/02/RBA4.jpg" alt=""> 
The poor monthly result for business and personal credit sees housing resume its apparently inexorable rise in terms of market share. 
<a href="https://www.propertyobserver.com.au/images/2017/03/02/RBA5.jpg" target="_blank">Click to enlarge</a>
<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/2017/03/02/RBA5.jpg" alt="">
The wrap
All regulatory eyes will be on the growth in investor loans, with more measures likely to be taken to cool this sector as 2017 progresses. 
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>.
 
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Housing credit doubles in a decade: Pete Wargent

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The sale of Masters’ portfolio will result in previously standalone retail assets carved into smaller tenancies, with Chemist Warehouse, Spotlight and other tenancies expected to take up occupancy, according to CBRE’s latest report.
CBRE’s view is that this factor, in conjunction with a relatively soft retail trade environment, will lower rental growth in 2017-18.
"The implication is that there will be an increase in large format retail centre (LFR) supply over the near term," the report says.
“Our view is that LFR supply will grow on average 14% per annum over 2017-18 (assuming Masters conversions take place during this period), which is double the long-term average supply trend of 6% per annum.”
However, growth in LFR supply in metropolitan areas is estimated at 8% per annum over the next two years, not accounting for potential project delays or withdrawals.
While tenants have already secured around 80% of the Masters portfolio, there is likely to be considerable backfill vacancy over the near-to-medium-term outlook period, particularly in secondary stock.
“The housing construction cycle is entering a downturn, and we expect peak growth in household good sales is behind us for this cycle and growth of around 3% will occur over the next couple of years,” the report stated.
This will leave a gap between supply and demand over this period.
<a href="https://www.propertyobserver.com.au/images/2017/02/17/Figure%2012.jpg" target="_blank">Click to enlarge</a>
<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/2017/02/17/Figure%2012.jpg" alt="">
"The gap between LFR supply and demand that we expect will occur over the next two years could be absorbed by growth in retailers that don’t traditionally occupy LFR."
The relaxation of LFR zoning laws in certain states has resulted in an increase of non-traditional retailers, Examples include gyms, supermarkets, childcare centres and government services, occupying LFR spaces.
Since the relaxation of LFR zoning laws in Victoria in 2013, there has been a shift in LFR tenancy mix to include non-traditional tenants.
There is an ongoing push for NSW to adopt a similar deregulatory path, and if this eventuates it will help cushion the impact of Masters store conversions.
Lower rents in LFR (compared to shopping centres) will make it a desirable location for non-traditional tenants such as supermarkets.
“We expect retail rent growth will moderate in 2017 amidst a soft retail trade environment,” the report stated.
<a href="https://www.propertyobserver.com.au/images/2017/02/17/Figure%2013.jpg" target="_blank">Click to enlarge</a>
<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/2017/02/17/Figure%2013.jpg" alt="">
Occupancy costs declined slightly in 2016 for CBD and regional shopping centres but not enough to support strong rent growth in 2017.
National retail yields compressed on average by 50 basic points in 2016, with the largest compression in neighbourhood (60 points) and large format retail centres (60 points).
Yields are at or near record lows for most retail categories.
CBRE forecasts limited compression in 2017 before yields begin to rise from 2018 onwards.
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Smaller tenants to carve up former Masters' retail space: CBRE

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Millennials currently account for around 35% of the workforce and are expected reach 40% by 2030, according to CBRE’s latest report.
This sizeable contribution to the workforce means that millennials are major decision makers and their spending behaviour will continue to influence the way retail centres operate, the report says.
Despite the rise of online retail, millennials still prefer in-store purchases and are attracted to shopping centres that provide the “retail experience”, encompassing international brands, new food and beverage (F&amp;B) concepts and the engagement of new technology.
According to the Australian results of CBRE's APAC Consumer Survey, millennials prefer shopping centres that offer a range of F&amp;B products and international brands.
This behaviour has and will continue to drive tenancy mix changes in shopping centres, the report argues.
"Millennials on average visit a mall five days per month to shop and three days per month for reasons other than shopping; therefore it is important to create destinations that attract millennials," it said.
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Millennials a major influence on retail centre operations: CBRE

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In a world racked by political uncertainty induced by Brexit negotiations, European elections and a new presidency in the US, the Asian markets appear to have maintained their appeal in 2016, according to Savills’ latest report.
"Office yields across all major cities hardened over the second half of last year and we believe there is still some (limited) scope for them to fall further in 1H/2017; the low interest rate environment, the ongoing ‘search for yield’ and increasing allocations to real estate are all considered to be positives for the sector," the report stated.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%205.21.11%20pm.jpg" target="_blank">Click to enlarge</a>
<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/2017/02/21/Screen%20Shot%202017-02-21%20at%205.21.11%20pm.jpg" alt="">
One of the most significant challenges for investors is a lack of prime office stock, however, and volumes have fallen consistently compared with 2015, a situation which is unlikely to reverse any time soon.
This lack of liquidity across most asset classes has arguably been masked by the above average number of portfolio deals recorded over the second half.
Scarcity of assets has resulted in money accumulating on the sidelines, causing fundraising to decline versus the previous year.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%205.21.22%20pm.jpg" target="_blank">Click to enlarge</a>
<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/2017/02/21/Screen%20Shot%202017-02-21%20at%205.21.22%20pm.jpg" alt="">
Despite its inward focus, Asian real estate capital has continued to explore overseas markets with the US attracting the lion’s share of deals, followed by the UK.
Cross border activity in 2016 was dominated by China, South Korea, Singapore and Hong Kong in that order while South Korean activity registered the highest rate of increase.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%205.21.37%20pm.jpg" target="_blank">Click to enlarge</a>
<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/2017/02/21/Screen%20Shot%202017-02-21%20at%205.21.37%20pm.jpg" alt="">
It will be interesting to see how Asian capital reacts to rate hikes  by the Federal Reserve and a strengthening US dollar set against a less predictable policy landscape in 2017 if that  is what comes to pass.
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