<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

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

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

<html><body>
InterContinental Hotels Group (IHG) and Pointcorp, have signed a management agreement for a new build Hotel Indigo, to be located in Brisbane’s Fortitude Valley.
The 140-room hotel on 458 Brunswick Street is the first Hotel Indigo signing for Australia and New Zealand.
It is due to open in 2020.
Hotel Indigo is IHG’s lifestyle boutique hotel offering. 
Karin Sheppard, Chief Operating Officer Australasia &amp; Japan, IHG said the search has been underway since late 2014.
It will be developing it in partnership with Pointcorp whose developments include Brisbane The Highgate and luxuriously appointed riverfront Vida.
IHG currently has 26 hotels operating under four brands in Australia: InterContinental, Crowne Plaza, Holiday Inn and Holiday Inn Express.
Launched in 2004, there are 72 Hotel Indigo properties (8,500 rooms) globally with 68 hotels (9,700 rooms) in the pipeline.
In 2017, Hotel Indigo Bali Seminyak Beach will open.
</body></html>

j.ballantyne1990-6AQqhLzZaK

IHG signs first Hotel Indigo in Brisbane’s Fortitude Valley

<html><body>
First application Loan-to-Valuation Ratio (LVR) Index from Veda and CoreLogic reveals improved financial security for Australian lenders.
<div>
The national average of application loan-to-valuation ratio (LVR) across Australia is currently tracking at 74.3%, according to the new Index from property data and analytics experts CoreLogic, and Veda, Australia and New Zealand’s leading provider of consumer and commercial data and insights and a wholly-owned subsidiary of Equifax. 
<h3>Application Loan-to-Valuation Ratio National</h3>
<a href="/images/2016/11/30/2016-11-04--loanvaluation--image2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/30/2016-11-04--loanvaluation--image2.jpg" alt="">
Released tomorrow for the first time, the Index draws on the CoreLogic median dwelling values compared against the median residential loan application amount from Veda.  The result is a timely indicator of application loan-to-valuation ratios across Australia over time. 
The CoreLogic and Veda measure of application LVRs provides a geographically specific indication on mortgage leverage at a granular level at the time of application. 
While the current application LVR is 1.7 percentage points higher than in 2011 (72.6 percent), it is significantly lower than when it peaked in 2013, when the average application LVR was measured at 78.9 percent.
Moses Samaha, Veda’s General Manager of Commercial and Property Solutions, said the new Index would leverage Veda and CoreLogic’s data and insights to provide more detailed analysis of market conditions. 
“We are excited to be partnering with CoreLogic to offer more detailed insight into the housing market and level of leverage households are typically committing to,” Mr Samaha said. 
“In the past 12 months to September, we have seen the national median dwelling valuation rise 5.5% and the median residential loan enquiry amount rise 3.4%,” Mr Samaha added. 
Geographically, the application LVR trend is being driven downwards by higher equity levels and substantial household wealth across the premium housing markets of Australia, particularly in Melbourne and Sydney. However, Sydney has recently experienced an upswing in average application LVRs. 
<h3>Application Loan-to-Valuation Ratio Sydney Median</h3>
<a href="/images/2016/11/30/2016-11-04--loanvaluation--image1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/30/2016-11-04--loanvaluation--image1.jpg" alt="">
“It’s common for capital cities with weaker housing market conditions to experience an increase in average application LVR. For example, Perth’s application LVR has jumped from 72.8 prcent to 77.1 percent in the past five years, sitting 2.8 percentage points above the national average,” Mr Samaha said.
<h3>Application Loan-to-Valuation Ratio Sept 2011 v Sept 2016</h3>
<a href="/images/2016/11/30/2016-11-04--loanvaluation--image4.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/30/2016-11-04--loanvaluation--image4.jpg" alt="">
“Sydney dwelling values have increased by almost 95% since the beginning of 2009 which has created a large amount of equity for those who have owned a dwelling during this time.  High equity is likely one of the key factors that has pushed application LVRs lower in Sydney and to a lesser extent, Melbourne,” Mr Samaha added. 
Average application LVRs in the other capital cities show mixed results. Application LVRs in Canberra and Hobart have leveled off recently on the back of improving housing market conditions. Brisbane has also seen the application LVR trend lower, reducing from a peak of 80.5% in October 2013 to the current reading of 77.7 percent. 
According to the Veda and CoreLogic findings, the trend towards lower application LVR estimates since 2013 can be attributed to a number of factors.  
The increasing volume of refinancing and mortgage top-ups for renovations or home extensions is likely to be a key factor driving application LVR measurements lower.  
First home buyers are also likely to be impacting the data. According to Australian Bureau of Statistics housing finance data, the number of first home buyers as a proportion of all owner-occupier housing finance commitments has declined from approximately 17 percent in early 2013 to a recent low of 12.9% in March 2016. First home buyers generally have smaller deposits and their lack of activity in the market may be pushing overall application LVR’s lower. 
Tim Lawless, Head of Research at CoreLogic Asia Pacific, said the level of application LVR is an indicator of prudent lending standards and financial stability. 
“Regulators and policy makers are likely to see the lower application LVR as a positive outcome, which is reflective of a more considered and prudent lending regime,” Mr Lawless said. 
“One of the factors contributing to lower application LVRs is the heightened risk assessment many lenders are applying to select housing markets, whereby larger deposits are required to offset higher lending risk.  
“Markets where dwelling values have shown substantial and rapid growth, where supply levels are high, or markets with disproportionate exposure to singular industries, such as mining towns, are typically being assessed by lenders as higher risk. Lenders in these markets are demanding lower LVRs to help minimise their own risk,” Mr Lawless added. 
The data from CoreLogic and Veda supports a similar trend in LVR reported by Australian Prudential Regulation Authority, which shows LVRs originating between 60 and 80 percent have comprised a larger proportion of lending.
Tim Lawless is head of the CoreLogic research and analytics team and can be contacted <a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank">here</a>.
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Loan-to-Valuation Ratios level out after trending lower since 2013: Tim Lawless

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<h3 class="post-title entry-title"> </h3>
New home sales declined by 8.5 percent in October to their lowest level in two years.
Sales were down for both detached houses (-8.2 percent) and multi-units (-9.2 percent).
The drop was led by Victoria which saw a 20 percent decline in detached house sales.
<a href="/images/2016/11/30/HIA.jpg" target="_blank">Click to enlarge</a>
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<div class="separator"><img src="/images/2016/11/30/HIA.jpg" alt=""></div>
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<div class="separator">Source: HIA</div>
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<div>New home sales are now 13 percent below their peak in April. </div>
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<div>The Housing Industry Association (HIA) sees this as consistent with its forecast of housing starts declining to 172,000 by 2018/19, driven by a substantial drop in apartments, which is fair enough.</div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">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" rel="nofollow">Four Green Houses and a Red Hotel</a>.
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Two year low for new home sales: Pete Wargent

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Taxes, fees, levies and other government charges are "the lead in the saddlebag" for housing affordability, according to the Housing Industry Association's (HIA) chief executive – industry policy and media, Graham Wolfe.
“Housing affordability will not be addressed by political point scoring around negative gearing or capital gains tax,” he said.
“It’s a distracting and lazy debate and one where all three levels of government point a finger at each other, when it’s a fact that around 40% of the cost of a new home is taxation.”
“Increasing the supply of new housing is an obvious key to improving housing affordability.
“But retaining the enormous taxation burden on the cost of new homes is an anathema to addressing the problem.”
Wolfe is responsible for the lobbying group's policy development, media and advocacy functions and has been pushing the government to reform its taxation policies towards the industry.
“It’s the taxes and levies that are charged on every new home that overwhelmingly defeat all attempts to reduce housing costs,” he said.
“Yet housing, a basic requirement that all Australians should be able to access, is taxed more heavily than other parts of the economy.”
“State based stamp duty on the purchase of a typical new home alone adds a $91 per month burden on household mortgage repayments.”
“On average, families in NSW will pay considerably more – every month for the life of their home loan.
“Residential investment in housing has made a considerable contribution to arresting rental costs for thousands of families.
“Particularly in NSW where new supply has moderated rental increases over the past two years.”
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Property taxes are crippling housing affordability: HIA

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A race for space is underway in Sydney’s office market, with limited supply and strengthening tenant demand pushing rental growth to a two decade high.
CBRE’s new Australian Office MarketView report highlights that Sydney’s CBD office market is on track to record its third consecutive quarter of growth and its strongest year in more than two decades.
In the three months to September 2016, prime rents lifted by 2%, while secondary rents increased by 8.3% - putting Sydney on track to match or exceed rental growth pre-GFC and its highest level of rental growth in more than 20 years.
CBRE advisory and transactions – office, regional director, Andrew Tracey, said Sydney CBD remained Australia’s most competitive office market – as demonstrated by the strong gains in rental growth year on year.
“The Sydney CBD remains fiercely competitive, underpinned by a real shortage of quality A and B grade alternatives and strong rental growth,” Tracey said.
“The fact that Sydney remains tightly held due to redevelopment of assets into alternative uses also continues to support rental growth.”
The report shows Melbourne was the only other office market nationally to record growth during the quarter, with prime rents lifting 0.5% in the period and 4.2% year to date in the Victorian capital. Meanwhile, secondary rents grew by 1.2% and 3.5% in the same time frame.
Tracey said Melbourne’s office market had witnessed rental growth off the back of strong employment levels and space absorption of 121,291 square metres in 2015.
“Rental growth in Melbourne has been assisted by withdrawal and sale of non-core secondary assets for future residential development site use and real growth in business,” Tracey said.
“This is combined with the attractiveness of continued relative rental affordability compared to alternative markets, with the city seeing the highest annual net absorption average nationally over the past 10 years.”
Vacancy rates in Melbourne’s office CBD currently sit at 7.0%, however this is expected to rise to 8.0% by the end of 2016 with the completion of new supply.
CBRE's associate director - research, Felice Spark, said vacancy was expected to contract however off the back of strong tenant demand.
“Looking ahead, Melbourne is forecast to see healthy levels of demand in the medium term, which will see vacancy ease to sub 6% by 2019. This in turn will see a continued outlook of rental growth,” Spark said.
The report highlights that almost four years of yield compression has pushed Sydney’s CBRE office yields to a historical, pre-GFC low – with potential to fall further.
In Q3, Sydney CBD core prime office yields reached a nine-year low of 5.2%, while secondary yields are 20 basis points off their pre-GFC low of 5.9%. 
<ul>
<li>Sydney</li>
</ul>
Sydney’s investment fundamentals remain compelling, with vacancy currently at 5.6% and expected to fall to 3.3% by 2018.
In tandem, prime growth is running at a 23% annual rate, which will further underpin growth in the market.
Spark said the strong rent growth could provide another leg to yield compression in Sydney.
“This, however, may be tempered by the mood in global property markets should interest rates tighten in the US and other countries over the course of the next year,” she said.
<ul>
<li>Melbourne</li>
</ul>
Despite falling vacancy in Melbourne’s CBD office market over the past six months, vacancy is expected to rise to 8% over the remainder of the year – driven by the completion of 110,000 square metres at Walker Corporation’s Collins Square development in Docklands.
With only 8,000 square metres of new supply due in the second half of 2017, vacancy is expected to return to circa 7% levels by the second half of 2017.
Further yield compression was witnessed in Q3, with prime yields now sitting at an indicative 5.6% and secondary yields at 6.2%.
Spark said there was growing sentiment among investors that yields were likely to stay lower for longer.
“Buyers who had previously held off purchasing under the assumption that we were at the peak of the cycle are re-emerging,” she explained.
<ul>
<li>Brisbane</li>
</ul>
Brisbane’s CBD office market is showing some signs of improvement, with net absorption returning to positive take-up in the six months to June this year.
This activity has been largely driven by state government expansion, a modest number of tenant relocations from the near city to the CBD and the steady filling of backfill space created by tenant moves to 480 Queen Street.
Yields remain firm off the back of strong demand from offshore investors for prime assets. The looming sales of Green Square South Tower and 324 Queen Street are expected to highlight the ongoing influence of offshore capital in the market.
<ul>
<li>Perth</li>
</ul>
A shift is underway in Perth’s office leasing market, with a rise in the number of tenants relocating from fringe and suburban locations – something not seen since before the mining boom.
While rents continued to decline over the quarter, the rate of contraction appears to be slowing.
Prime rents fell just 0.4% during the quarter, while secondary rents fell 1.2% during the same period. By comparison, incentives remained unchanged at 47.5%.
Office vacancy increased from 16.6% to 21.8% in the 12 months to June 2016.
Spark expects the second half of 2016 represents the peak of the vacancy cycle.
“A positive for Perth’s CBD office market is that the major supply shock has now passed,” Spark explained.
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<li>Adelaide</li>
</ul>
Challenging demand conditions, as well as the completion of two major office refurbishments, saw office vacancy rise to 15.8% in July 2016 – the highest level in 15 years.
Rising vacancy has underpinned a decline in rents, with prime rates down 5.1% year on year and secondary rents down 4.4%.
Spark said despite the softer occupier conditions, investor demand for assets remained strong.
“Over the past 12 months, prime yields have sharpened to 7.2%, while secondary yields remained steady at 8.9%,” she said. “The past several years have seen greater yield compression for prime grade stock as investors seek out higher performing assets which carry lower vacancy risk.”
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Sydney CBD office market hits 20 year rental growth high: CBRE

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Two inner suburban properties offered at recent auction by agents Gray Johnson have been purchased by developers proposing either townhouses or a mix of commercial and residential projects.
They are reflective of the strong current market demand for townhouse development sites in particular.
They were offered as surplus to the needs of a major corporate, with architectural conceptual plans prepared for potential developments.
The property at 570 Neerim Road, Hughesdale was auctioned as a vacant site with a developable area of approximately 590 square metres and a street frontage to Neerim Road of 15 metres.
Holding a general residential zoning, it sold at auction for $1,119,000 to a developer who will consider a townhouse project for the site.
Another property, known as part 101 Cape Street in Heidelberg, has a developable area of approximately 309 square metres with a frontage of some 17 metres to Sheffield Lane and holds a commercial 1 zoning.
It sold at auction for $1 million to a developer believed to propose a mixed use multi-level commercial and residential project.
Gray Johnson director Matt Hoath says that this property is in close proximity to Heidelberg’s primary retail and services strip along Burgundy Street.
This includes the Warringah Shopping Centre, with easy access to the Mercy Women’s and Austin Hospitals and the Heidelberg Station.
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Two Hughesdale potential townhouse development site sold

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A retail property in Paddington has been listed for auction.
Located at 3a Glenmore Road, the new three storey, double fronted retail building has been marketed as having "presence".
It was rebuilt in 2005 and offers 160 square metres of floor space over three levels.
The retail space takes two of the levels and the third is used as a storage and office space.
It is leased to SABA until February 2018 with a 5% annual increase, plus opportunities to further extend it for another five years with all outgoings paid by the tenant.
The auction is December 13 through Ray White agent Ben Vaughan.
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Retail property on Glenmore Road, Paddington listed for auction

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A Sydney Road site with redevelopment potential at Fawkner in Melbourne’s north has been sold by Ray White Commercial for $1.25 million.
The partially leased property at 1110 Sydney Road sold to an owner-occupier.
Ray White Commercial agent Brett Diston said the nine title offering was 1015 square metre in total.
"The rear factory facing Lorne Street is currently leased on a new three year lease with a further term of three years at $26,450," he said.
"The total building area on the site is approximately 290 square metres and the property is zoned industrial three."
The site is approximately 11 kilometre north of the Melbourne CBD and close to the Metropolitan Ring Road.
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Fawkner corner site property sold for $1.25 million

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A South Yarra retail property has been listed for auction.
Located at <a href="https://www.realcommercial.com.au/property-retail-vic-south+yarra-502178310" target="_blank">403 Chapel Street</a>, it has three street frontages with the opportunity for future cut up potential.
It has a four year net lease to a highly secure tenant with a net annual income of $208,000 with all outgoings paid by the tenant and a 4% fixed annual increase.
Surrounding the property are a number of residential developments, set to provide higher density, increased foot traffic and further demand for retailers.
The auction is on December 9 through CBRE agents Rorey James, Nic Hage and Justin Dowers.
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Chapel Street, South Yarra retail property for auction

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Saltwater Properties has purchased the leasehold over Berkeley River Lodge in the Kimberley region on the north coast of Western Australia, with price suggestion of under $10 million.
The property features 20 spacious villa units with Timor Sea, Berkeley River and Kimberley views, restaurant, bar, conference and pool facilities, staff accommodation, workshops and a dedicated airstrip on a 4704 hectare site.
The leasehold on the four year old 5 star resort is 20 years with a 20 year option. It was was sold by Berkeley River Holdings through Savills senior hotels executive Nic Simarro.
Mr Simarro said said the property had attracted 36 enquiries from a mix of local and offshore investors, but was exceptionally well suited to Saltwater which owns and/or manages up to 30 hotel/resort/apartment properties across Australia including Broome properties, Kimberley Sands Resort &amp; Spa and the Pearl of Cable Beach.
"This is really an extraordinary property from the flight in over some of Australia’s most iconic outback landscapes to the beautiful expanse of the Timor Sea, the Berkeley River, panoramic views, and the high level of individual accommodation and service which includes a 5 star restaurant,’’ he said.
"The fact the Berkeley was offered at well below replacement cost and that the resort offered exceptional growth potential, given occupancy had grown exponentially since its 2012 opening, were also important factors."
For more information, <a href="https://www.berkeleyriver.com.au/" target="_blank">click here</a>.
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