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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Many factors play a part in growth property markets, but the biggest single element is infrastructure.
Good places to invest are places with excellent infrastructure, including the nuts-and-bolts elements such as schools, shops and public transport.
And the markets most likely to grow in future are those where there’s big spending on new infrastructure - with transport facilities the most influential (although medical and educational infrastructure are also big).
Sydney’s recent price boom was created by three key factors - the strongest economy in the nation, pent-up demand after a decade of under-performance, and big, big spending on infrastructure, especially road and rail links.
Sydney’s economy and its property markets turned around when there was a change of state government in 2011.
After more than a decade of stagnation, with little spent on infrastructure, improved governance caused an upturn in the economy and big spending on new projects. Currently there are facilities worth tens of billions of dollars being built, including massive road and rail ventures.
Projects like these create economic activity and jobs, as well as improving accessibility.
One of the factors underpinning the revival in the Tasmanian economy and the rise of the Hobart property market has been a significant rise in spending on infrastructure.
Similar to the NSW experience, the turnaround in Tasmania has evolved from a change in state government, with an emphasis on infrastructure improvements and encouragement of construction projects.
Prices and rents have grown in Hobart on the back of these changes and the Tasmanian capital is expected to be a price growth leader among the capital cities in 2017, boosted by its low prices, tight vacancies and relatively high rental yields.
Against that background it’s good news that road infrastructure, according to a new study, is forecast to be the No.1 growth industry sector in Australia this year.
Research firm IBISWorld sees road infrastructure building as the fastest-growing industry this year, with revenue growth tipped to rise 27.2% to a tick over $20 billion in FY2017 - ahead of the sugar manufacturing and oil/gas extraction sectors.
Several giant transport infrastructure projects are currently driving accelerated expansion in the road &amp; bridge construction industry. “Much of the current robust growth has been due to the early construction phases of the NorthConnex M1 to M2 link and WestConnex projects in Sydney,” it says. “These private-public funded projects are set to dominate the road construction landscape for several years.”
Meanwhile, a report from commercial real estate consultancy Savills says that Australian cities which provide the most efficient transport infrastructure, on top of essential social infrastructure, will place themselves in the best position to deliver sound economic performance.
They will become the preferred home for the best and most skilled workers and the hi-tech industries that employ them over the next decade.
“And those cities will be at the centre of property development and investment opportunities as they grow to accommodate vastly increased populations”, it says.
Savills Australian Head of Research, Tony Crabb, says many academic studies have pointed to the preference among skilled workers for ‘liveability’ over financial rewards including a 2016 Savills UK study What Workers Want, which found workers wanted their life contained within a half-hour radius.
“We expect skilled or knowledge workers to be doubly attracted to places where they can achieve both a high degree of liveability and financial rewards, but transport infrastructure is the critical element with work, rest and play accessible in 30 minutes by car, public transport, walking, or cycling, the key determinant,” he says.
“Major transport infrastructure provides the backbone of investment opportunities and it is generally around such infrastructure that industries agglomerate, but light rail, tram, bus, cycling and street networks are equally important in delivering liveability.”
Other facilities such as medical and educational infrastructure are also vitally important.
Crabb says that while Melbourne and Sydney are likely to attract a growing number of skilled workers with population forecasts of up to 10 million by 2050, two other cities - Adelaide and Perth – were nominated (along with Melbourne) by the London based Economist Intelligence Unit  among the world’s Top 10 most liveable.
Melbourne ranked No.1 on this list ahead of Vienna and Vancouver, with Adelaide No.6 and Perth No.7.
Melbourne and Victoria continue to lead the nation on population growth, with a 2.07% increase in FY2016, ahead of New South Wales with 1.39% and Queensland with 1.35%.
But Melbourne has not delivered house price growth as high as Sydney’s over the past 3-4 years because it has not matched Sydney’s infrastructure spend or its overall economic performance.
Melbourne does, however, have some big-ticket projects in planning, including the Melbourne Metro Rail Project and the North East link road project. Both are expected to cost over $10 billion.
Brisbane has many factors in its favour but spending on infrastructure has largely ground to a halt and economic performance has been lukewarm.
Part of the problem is a state government suffering from paralysis by analysis. It was reported recently that the Queensland Government has initiated 120 reviews and inquiries since winning office in January 2015, with the under Anna Palaszczuk dubbed the “do-nothing Premier”.
What is starkly absent is clear decision-making and, in particular, much-needed spending on infrastructure.
This is hope that this will change. Brisbane is awaiting a start on eight significant projects, which entail investment totalling over $12 billion. They include inner-city rail projects, highway upgrades, big spending at Brisbane Airport and major tourism-focused inner-city developments such as the $3 billion Queens Wharf Casino and the $800 million Brisbane Quarter project.
 Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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terryryder-YECXbqmri2

The three key factors behind Sydney's price boom

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The Western Australian State Government is selling an entire townsite with more than 20 freestanding cottages with offers closing January 31.
The listing of Tone River, <a href="https://www.domain.com.au/lot-83-radburn-road-strachan-manjimup-wa-6258-2013236116" target="_blank">Lot 83 Radburn Road, Manjimup</a> WA 6258 says the town ceased working as a wilderness retreat in 2008 and "not a lot has happened since then until now".
The property, 42km's from Manjimup town centre and approximately 335km's from Perth, features a town hall, modern workshop, reception office, undercover BBQ area, beach volleyball court, tennis court and swimming hole.
The total area of land is approximately 39.82 hectares, with two house sites on the property privately owned outright and not part of the sale.
According to the listing it is set up for a group of people or a club to purchase and renovate over time.  
"Yes it's going to need some imagination, hard work and vision, but the end result could be as amazing and as big as you dream it!
"It's zoned Tourism Enterprise under the Manjimup Shire Town Planning Scheme so you can't live here full time (except for a caretakers residence). but you can holiday here as much as you like or create your own holiday centre."
The listing is through Colin Wallbank of LJ Hooker Pemberton. 
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jonathanchancellor-7SQnKwU6yx

Tone River townsite, WA, listed for sale

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Sydney publican Paddy Coughlan has acquired The Botany View Hotel in Newtown for $6.4 million in the latest sign of strong demand for inner city food and beverage pubs.
The BVH, as it is affectionately known, is situated at the southern end of King Street.
It boasts an expansive two-level trading footprint, extended trading hours and a first floor beer garden with a 2am license approval.
CBRE Hotels' Sam Handy and Daniel Dragicevich negotiated the sale on behalf of the Murphy family who have owned and operated the pub for the past 26 years.
The deal marks the third inner west pub acquisition for Mr Coughlan, who recently acquired the Lady Hampshire in Camperdown and the Lord Gladstone in Chippendale. It comes at a time when the private equity backed Riversdale Group, a business that Coughlan founded (and is still an investor in), seeks an exit with the group's assets being sold down for significant premiums.
Coughlan said he'd noticed a real shift in recent years, with many Newtown locals gravitating towards the southern end of King Street.
"The recent acquisition of the Sydney Park Hotel by Ray Reilly and the Queen Victoria Hotel by Justin Hemmes has highlighted this migration trend.”
Mr Coughlan added that he would look to replicate the success that had been achieved at the Lord Gladstone with a revised food and beverage proposition at the Botany View.
CBRE Director Sam Handy noted that the sale follows a spate of bullish food and beverage pub sales within inner Sydney, most of which have been transacted through CBRE Hotels.
These sales include the Winery (Surry Hills), Cargo Bar (Darling Harbour), the Sydney Park Hotel (Newtown) and the Trinity Bar (Surry Hills).
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jchancellor-FAypfDUnLy

Paddy Coughlan buys Newtown pub, The Botany View Hotel

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ANZ has signed an agreement with Lendlease to house more than 2000 staff in a new major building in Docklands at 839 Collins Street.
The Big Four bank will be the anchor tenant - leasing 26,500 square metres - at the new building, expected to be completed in the first half of 2019. It will be a 6-star Green Star environmental rated building. 
It will be adjacent to ANZ’s global headquarters. 
ANZ Group general manager - property, Kate Langan, said: “Having two adjacent buildings across one Docklands location will enable us to create a single ANZ campus that will address future workplace demands while also allowing people to work together more easily and creatively.”
“This is the last available commercial building in Victoria Harbour which features the highest concentration of Green Star-rated buildings in Australia. We think it will be great for our staff as well as having significant environmental benefits,” she said.
The new lease follows the sale of ANZ’s office tower at 100 Queen Street Melbourne to GPT Wholesale Office Fund, which the bank is leasing back with an initial term until June 30, 2019.
ANZ has a long history in Melbourne. Docklands is home to ANZ’s global headquarters while the bank’s National Trust listed historic heart at 388 Collins Street, the Gothic Banking Chamber and Verdon Chambers (the old Bank Manager’s Residence), have been a recognised part of the city’s urban fabric since 1886. 
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ANZ to expand Docklands presence with new Collins Street building

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REA Group chief economist Nerida Conisbee looks at what we should expect from Australia’s commercial property market in 2017.
1. Sydney to remain the top performer for both capital and rental returns
Sydney now has the lowest vacancy rate in Australia for office and industrial property.
With economic growth continuing in NSW, a slow development pipeline and more stock being taken out of the market, there are no signs of this changing in 2017.
Sydney’s CBD office market will be the strongest commercial market nationally, with vacancy continuing to decline, partly because of a growth in white collar employment but also because of the construction of Sydney Metro taking out large chunks of secondary space.
While this is great for landlords, it will be challenging for tenants as rents rise and available options reduce.
While there is some new development taking place, there is unlikely to be enough completed in 2017 to satisfy demand and this will be a drag on economic growth for NSW.
2. Flow of Chinese money to continue
Chinese buyers purchased US$3.7 billion of Australian commercial property in 2016, according to Real Capital Analytics, down from US$4.3 billion in 2015.
This decline is likely to be due to lack of buying opportunities, as opposed to a lack of funds, as buyer interest appears to continue to grow unabated.
Changes will continue to occur to the types of Chinese buyers targeting Australia, as well as what they choose to purchase.
The first wave of Chinese buyers were developers and these groups are now firmly entrenched in the Australian market.
Sovereign wealth funds have also become well established.
The next wave is likely to be large Chinese conglomerates, looking to diversify their risk and tap into the significant opportunities in Australian property.
These changes to buyers mean that the types of property is also changing.
While development sites and office buildings still dominate, growing interest from Chinese buyers in Australian hotels, agriculture and retail will be a key theme in 2017.
3. Australia’s safe haven status confirmed
As concerns about Brexit rock London – historically one of the safest markets in the world for commercial property – and uncertainty as to the impact of a Trump presidency on US property raises concerns in that market, Australia is looking even more attractive.
A quarter of a century of positive economic growth, low sovereign risk and a strong-performing property sector are all characteristics of a desirable investment destination.
Will this change to the global political landscape redefine the markets that are considered safe? With the exception of Singapore, most of Asia has been seen as too politically risky for most large scale investors. This may begin to change in 2017.
4. Amazon to finally crack online shopping in Australia
Online shopping is not big in Australia. We like it well enough but certainly not as much as the rest of the world.
Largely this is due to the fact that the proportion of spending we do online for grocery shopping remains low.
Amazon announced they will enter the Australian market in 2017.
While it is uncertain exactly how aggressive they will be, if they replicate the success they have had elsewhere it will have an enormous impact on shopping behaviour.
This will be a challenge for our supermarket chains, as well as the shopping centres that contain them.
5. Shopping centres continue to adjust to a changing landscape
Shopping centres are resilient and have been remarkable in their ability to adjust to changing consumer preferences.
Now much more than simply a place to shop, they offer entertainment, social interaction and places to eat.
Good shopping centres drive residential prices in the suburbs surrounding them, particularly if they have been recently upgraded.
Can they adapt to a potential threat from large online retailers like Amazon?
It is likely that the poorer ones will be hit but smart owners will redesign and refurbish to continue to attract consumers.
This could be by increasing the food and beverage options, being smarter about marketing to their local communities or providing more services such as medical centres and gyms.
6. Technology continues to change commercial property
The technological revolution has been slow to hit commercial property, certainly lagging behind sectors such as banking and retailing.
The indirect impacts, however, will continue to be a feature in 2017.
Whether that be by technology occupiers driving office markets (startups to Melbourne, established to Sydney), changing warehouse designs as a result of new picking technology or the above mentioned rise in online shopping, changing technology will impact the occupier markets in particular.
7. Interest rates to rise independently of RBA decisions
Interest rate rises on home loans were big news late last year, particularly given that the Reserve Bank of Australia made two cuts just a few months prior.
Next year, it is likely the banks will continue to break from the RBA’s rates decisions. Even if the RBA cuts interest rates, there is no guarantee that this will be passed on.
While this seems to be largely focused on residential lending, it may also impact lending on commercial property, particularly for those property types that are closely linked to the residential market (like development sites).
8. Australian investors expand offshore
Australians were among the biggest investors offshore in commercial property in the lead up to the GFC, but now barely feature.
Part of this is because so many of them made poor purchasing decisions, and have been impacted by those choices for many years.
The other factor is that so many large Australian investors are now backed by offshore money, which means very few want their funds sent outside Australia.
In 2017, however, the number of investors looking overseas is likely to grow.
That group is likely to be dominated by Australian superannuation funds, however smaller unlisted funds and syndicates are likely to become more active.
Part of this will be about moving up the risk curve but also about diversification and taking advantage of opportunities in other markets.
9. Investors continue to move up risk curve
The GFC was almost a decade ago and the types of property popular with investors have changed significantly over that time period.
Moving from the safest office markets in the years immediately after 2007 to the rise in the popularity of agribusiness, medical centres and self storage more recently, the change is consistent with most commercial property cycles.
A search for stock, yield and opportunity will continue to drive the types of properties that are attractive to investors in 2017.
This could mean moving offshore, into childcare centres or contaminated industrial sites.
10. Apartment oversupply concerns impact development site sales
The apartment boom has been kind to owners of development sites, with values rising rapidly over the past five years in almost every capital city.
In 2017, inner Melbourne and inner Brisbane are coming into an enormous amount of new apartment completions.
While this may not necessarily be a problem, it is likely to lead to developers taking a pause in these markets as the new supply is absorbed.
Expect development site values to stabilise or even decline as a result.
This article appeared in <a href="https://www.realcommercial.com.au/news/how-is-the-commercial-property-market-shaping-up-in-2017" target="_blank">www.realcommercial.com.au</a>.
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j.ballantyne1990-6AQqhLzZaK

How is the commercial property market shaping up in 2017?: Nerida Conisbee

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The Cape Gloucester Beach Resort near the Gloucester Passage has been listed for $5.99 million.
It's been listed by four Brisbane friends who pooled their money together to buy the resort as they all share a passion for the water.
There are four shareholders, Arthur Perrins, Michael Hodges, Richard Eaton-Wells and Mark Wilson. The investors bought the island for $2 million in 2012.
Located 45 minutes from Airlie Beach and opposite Shag Island, Gloucester Passage is a popular destination for boaties to anchor in the area.
The property comprises 13 hectares of bush and sand and is lined by several hundred metres of clean sandy beach.
On the premises is a licensed bar, restaurants and self-contained cabins with 45 beds.
The popular resort just hosted the Whitsunday Tourism Awards.
Kim Griffiths at Mackay and Marina Real Estate has the listing.
Griffiths confirmed that no development work has been done. 
“One of the group decided he needed to tidy up his affairs so the rest of the boys just decided they’ll have to sell it,” Griffiths told the Courier Mail.
They’ve used the resort for family holidays over the years but not as much as they’d like to, according to Griffiths.
“The boys haven’t done any development work there,” he said.
“They were going to get a DA pending to do some more beachfront cabins but the boys, they lost their urge to develop.” 
<div>
“It’s a profitable business, a successful business as a well-regarded restaurant and weekend venue,” Griffiths said.
</div>
“On any Sunday a couple of hundred people will go to Cape Gloucester for lunch.”
The majority of interest so far has been from potential Queensland buyers with a sentimental attachment to the region.
“The boys are going to sell it,” Griffiths said.
“They’re not just putting feelers out there. 
“They want to sell it so they want to be approached.”
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Whitsundays beach resort listed for $5.99 million

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A large format retail centre in Sunbury, Victoria has sold for $14.88 million through CBRE.
The Sunbury Showrooms was a former Bunnings store that was converted to a large format retail centre in 2014.
An offshore Chinese group snapped up the suburban Melbourne centre, with the sale price representing an initial yield of 6.52%, according to a media release.
According to CBRE Victorian Retail Investments, the sale set a new yield benchmark for large format retail centres in Victoria and follows CBRE’s $35 million sale last year of the Rocklea Homemaker centre on a yield of 7.7%.
Local Victorian developers H.Troon appointed CBRE’s Victorian Retail Investments team to market the property through an expressions of interest campaign.
The Sunbury Showrooms has a total lettable area of 5,554 sqm and has six homemaker tenants, such as The Good Guys, Godfreys, Petstock and Repco.
The selling agents were Justin Dowers, Chris Parry and Kevin Tong.
“The result we have achieved for Sunbury Showrooms has set a new benchmark yield for large format centres in both Victoria and Australia, with yields previously sitting above 7%,” Dowers said.
He added that the limited supply of investment grade retail properties on the market was leading to further yield compression for blue-chip retail assets across the board.
Dowers also noted that heightened confidence in the large format retail market and the associated lease covenants was helping to drive significant yield compression in this market segment.
“The sector is typified by long initial lease terms and fixed annual increases, which are very attractive to investors at the moment,” Dowers said.
 
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Large-format retail centre in Victoria's Sunbury fetches strong yield of 6.5%

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The Brisbane CBD saw six major sales with yields at a high 7-8 percent for most, as recorded by Savills in its Q4 2016 office market report, with yields remaining steady from the previous quarter for selected sales.
The highest yield was 8.53 percent for 348 Edward Street which had a net lettable area of 11,484 sqm and $4267 per sqm, according to Savills.
<a href="https://www.propertyobserver.com.au/images/2017/01/23/Feb1CommPropBrisbaneSales.png" target="_blank">Click here to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/23/Feb1CommPropBrisbaneSales.png" alt="">
As for renting, the gross face rental for premium buildings was in a tight range of $795 to $855 per sqm, while for A grade it was between $600-$700 per sqm and B Grade was from $525 to $580 per sqm.
The highest paying tenant was Henry Morgan in the Brisbane CBD area with $810 per sqm for an NLA of 500 sqm at 123 Eagle St, data showed. 
<img src="https://www.urban.com.au/images/2017/01/23/Feb1CommPropBribaneLease.png" alt="">
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Brisbane CBD office market yields around 7-8 percent for major deals: Savills

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Two childcare investment opportunities have opened up in in suburban Newcastle’s Kahibah and Thornton.
Both are anchored by the ASX-listed G8 Education Ltd, a $1.3 billion childcare giant. 
The properties are for sale through an expressions of interest campaign and being managed by Colliers. The listing agents are Adam Leacy and Matt Kearney.
The centres come with 15-year leases with options for further extensions. There are fixed 4 percent rent increases with the tenant paying all outgoings.
The annual rents are about $300,000 and $198,000.
According to Colliers, the two centres are positioned in strong family demographic suburbs.
Market competition in the childcare space saw yields sharpen in 2016, according to a previous Colliers white paper.
Sales in the childcare space were sporadic, and typically at higher yields than the retail and industrial market. The report noted a sale in September 2010 which transacted at a yield of over 14 percent, the highest since March 2007.
"A heavy concentration of sales occurred on the east coast of Australia, especially in recent years with sales increasing from only 2 auctions in 2008 to 33 in 2015, most of which are tenanted with a 10 year average initial lease term. The first half of 2016 has seen 18 child care centres sold with the bulk of transactions occurring in New South Wales,” the report said.
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Two G8 childcare centres in Newcastle up for sale

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Australian cities figure regularly and highly on the liveability index with three in the top 10 led by Melbourne.
The trend will likely continue if Australian cities, especially Sydney and Melbourne with their rapid population growth, develop transport infrastructure that leads people growth and not react to it, according to Savills.
Many academic studies had pointed to the preference among skilled workers for 'liveability' over financial rewards including a recent (2016) Savills UK study - What Workers Want – which found workers wanted their life contained within a half hour radius.
Savills Australian head of research Tony Crabb said, he expects skilled or knowledge workers to be doubly attracted to places where they can achieve both a high degree of liveability and financial rewards, but transport infrastructure is the critical element with work, rest and play accessible in 30 minutes by car, public transport, walking, or cycling, the key determinant.
"While Melbourne and Sydney were likely to attract a growing number of skilled workers with population forecasts of up to 10 million by 2050, two other cities - Adelaide and Perth – were nominated with Melbourne, by the London based Economist Intelligence Unit (EIU), as among the world's top ten most liveable," he said. EIU List of the world's most liveable cities
<ul>
<li>Melbourne, Australia</li>
<li>Vienna, Austria</li>
<li>Vancouver, Canada</li>
<li>Toronto, Canada</li>
<li>Calgary, Canada</li>
<li>Adelaide, Australia</li>
<li>Perth, Australia</li>
<li>Auckland, New Zealand</li>
<li>Helsinki, Finland</li>
<li>Hamburg, Germany</li>
</ul>
“That is a great achievement for those cities but if they wish to maintain that status, transport infrastructure development needs to be front of mind. It needs to lead population growth rather than react to it but certainly governments need to be proactive. In my experience, in cities of 10 million people, cars don't work very well. Australian cities are very car-centric and need to develop better alternatives.
“Major transport infrastructure provides the backbone of investment opportunities and it is generally around such infrastructure that industries agglomerate, but light rail, tram, bus, cycling and street networks are equally important in delivering liveability. In an age where technology allows us to be virtually mobile at a global level, the quality of local neighbourhoods has rarely mattered more,” Crabb added.
Crabb said Australia's ageing population and the boom in demand for childcare were also significant issues that governments needed to consider in terms of liveability and attracting skilled workers. “Buildings including government offices, law courts, hospitals, schools and universities, and sporting and entertainment facilities provide the basic social infrastructure for growing communities and as such are magnets for population growth, but increasingly childcare and aged care are the 'must haves' for skilled workers and their extended families. “As the population grows and ages, the provision and facilitation of these industries also presents further opportunities in the built environment for hospitals, respite care, aged care, retirement living, medical centres and allied health industries which in turn provide anchors for other real estate,” Crabb said. He said while demand for childcare services would continue to grow with opportunities for investors and developers in both neighbourhood and near-workplace crèches, nursery schools and day care, hospitals may well be viewed as the new 'mega-mall'. “Hospitals are a large piece of public infrastructure and generally do not close down. As demand for hospital services increases, the land around them becomes more valuable for ancillary services. Short-term stay accommodation, entertainment, retail, offices, consulting suites, services and parking are just some of the value-add opportunities on offer to investors,” Crabb said. He said in a globally competitive environment governments needed also to be aware of the need to cater to the requirements of an increasingly mobile skilled immigrant workforce. “Skilled migrants have a choice of countries to which they may be attracted, and so hitherto attractive countries will face competition in the form of financial inducements such as free education and healthcare, low taxes, high wages and interesting jobs as well as lifestyle, safety, security and cleanliness. “Given the diversity of attractive offerings from competitors, liveability for Australian cities needs also to factor in policy and development with a multicultural flavour,” Crabb said.
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