<p><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.</p>

<p>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.</p>

<p>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.</p>

<p>Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.</p>

<p>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.</p>

<p>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</p>

<p><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" /></p>

<p>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.</p>

<p>But one of the biggest components of the proposal is what sits between the buildings.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>SP Setia plans to deliver the development across three stages.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


Joel Robinson

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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.</p>

<p>"Eight residences is exceptionally boutique, but that's precisely what this site calls for.</p>

<p>“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.”</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>Heritage has subsequently played a significant role in Cera Stribley's design.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>


Lowe Living unveils Middle Park apartment development

<p data-end="288" data-start="269"><strong data-end="288" data-start="269">Article summary</strong></p>

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289"><strong data-end="374" data-start="291">DVB Projects is preparing to launch its second Gold Coast apartment development</strong>, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443"><strong data-end="513" data-start="445">The 34-level tower will comprise just 49 ultra-luxury residences</strong>, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574"><strong data-end="646" data-start="576">The launch follows strong demand at DVB's nearby Sea Glass project</strong>, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718"><strong data-end="787" data-start="720">The development adds to the transformation of Old Burleigh Road</strong>, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<p data-end="1011" data-start="790"><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.</p>

<p data-end="1296" data-start="1013">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</p>

<p data-end="1296" data-start="1013"><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" /></p>

<p>The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.</p>

<p>“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;</p>

<p>“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."</p>

<p>Brown says the site itself is "exceptional."</p>

<p>"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.”</p>

<p><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." /></p>

<p>The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.</p>

<p>A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>“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.</p>

<p>“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.</p>

<p>“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.”</p>

<p><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" /></p>

<p>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.</p>

<p>With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.</p>

<p>[smartcode_project_cta:default project_id=145141]</p>


DVB Projects to launch second Broadbeach apartment tower as demolition commences

<p><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.</p>

<p>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>.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.</p>

<p>"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."</p>

<p>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."</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>


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

<p><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;</p>

<p>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.</p>

<p>[smartcode_project:default project_id=107520 project_image_fid=367193]</p>

<p>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;</p>

<p>Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;</p>

<p>"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.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=107520 project_image_fid=367183]</p>

<p>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;</p>

<p>"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;</p>

<p>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.</p>

<p>The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;</p>

<p>[smartcode_project_cta:default project_id=107520]</p>


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

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>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.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><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" /></p>

<p>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</p>

<p>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.</p>

<p><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" /></p>

<p>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.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><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" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>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;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


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

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<p><span>GUEST OBSERVER</span></p>
<p><span>Making vertical retail work for Hong Kong </span><span>Vertical retail or so-called “Ginza- style” retail is increasingly popular in Hong Kong with both landlords and tenants, but this retail format offers both unique challenges as well as advantages to investors and users. </span></p>
<p><span>Why Ginza? </span></p>
<p><span>Ginza is one of the most popular and expensive shopping districts in Tokyo; like many parts of the Japanese capital, high land prices led to the early development of high- rise retail-cum-commercial buildings. </span></p>
<p><a href="/images/2016/11/14/Screen%20Shot%202016-11-14%20at%201.05.20%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/11/14/Screen%20Shot%202016-11-14%20at%201.05.20%20PM.png" alt=""></span></p>
<p><span>This type of building offers space </span>at more affordable rents compared to high street premises, and also an extended, even 24-hour, operation environment which cannot been found in traditional shopping malls. Therefore, it is particularly popular for F&amp;B, Izakaya (Japanese-style bars) and Karaoke operators in Tokyo.</p>
<p><span>Hong Kong, especially the core retail districts, has the same space constraints as central Tokyo. Going upstairs or upwards seems to be a rational option for some retail businesses with limited capital or less reliance on foot traf c or impulse spending. A Ginza-style retail concept provides a more affordable alternative for independent retailers facing strong competition from international retailers for prime street-front space. This might be the only way for small retail businesses to access a prime districts nowadays – especially as street shop rents in prime areas have risen by nearly 140 percent since 2003.</span></p>
<p><a href="/images/2016/11/14/Screen%20Shot%202016-11-14%20at%201.06.34%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/11/14/Screen%20Shot%202016-11-14%20at%201.06.34%20PM.png" alt=""></span></p>
<p> </p>
<p><span>Likewise, landlords and investors are attracted by the decent returns generated from Ginza-style retail development. Spurred by the strong demand as well as the soaring rents of ground oor shops on prime streets, unit rents for Ginza-style retail space in prime locations can be 50% to 100% higher than general of ce space in the same locality. </span></p>
<p><span>Ginza-style retail has become more popular in Hong Kong over the past decade and mushroomed in core retail and entertainment districts including Causeway Bay, Tsim Sha Tsui and Central. </span></p>
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<div class="column">
<p><span>Typical development form<br></span></p>
<p><span>The concept of Ginza-style retail first sprang up in Hong Kong in the early 2000s, as landlords converted smaller of ce/commercial property in prime shopping areas for retail use to maximise their rental income. There are also purpose-built high- rise buildings designed for F&amp;B tenants. Development scale can range from a few oors (the Tokyo version) to a high-rise tower of over 20 storeys (the Hong Kong version) with typical oor plate ranges from 1,500 to 8,000 sq ft. </span></p>
<p><a href="/images/2016/11/14/Screen%20Shot%202016-11-14%20at%201.07.22%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/11/14/Screen%20Shot%202016-11-14%20at%201.07.22%20PM.png" alt=""></span></p>
<p><span>These buildings are usually located in secondary streets of prominent shopping areas and are characterised by a rather low-pro le entrance. In Hong Kong, these buildings are marketed as a chic F&amp;B destination with multiple choices with 50 to 60% of the total oor area allocated to F&amp;B, including restaurants and clubs, with a mix of services and service-based retail. </span></p>
<p><span>Developed by H Development in 2001, Henry House on Yun Ping Road in Causeway Bay is one of the early examples of a purpose-built Ginza-style building in Hong Kong. The 28-storey building has a oor plate of about 1,500 sq ft with a single tenant on each floor. </span></p>
<p><span>Other examples include Cubus, a joint venture development of The Hong Kong Parkview Group, CSI Property Ltd and Phoenix Property Investors. Opened in 2010, the 25-storey building focuses on F&amp;B, hair and beauty and specialty retailers. In Central, Stanley 11 on Stanley Street, has 20 tenants in over 26 storeys. With a focus on affordable F&amp;B offerings, the building is a popular lunch location for the office workers in Central. </span></p>
<p><a href="/images/2016/11/14/Screen%20Shot%202016-11-14%20at%201.08.28%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/11/14/Screen%20Shot%202016-11-14%20at%201.08.28%20PM.png" alt=""></span></p>
<p><span>To amplify the investment returns and also for branding purpose, some developments feature ground- oor retail, such as Oliv on Sharp Street East in Causeway Bay. Completed by Magusta Group last year, the project has high-end watch brand Franck Muller as the anchor tenant on the rst two oors of the 24-storey building. The rest of the building has a mix of lifestyle, F&amp;B and beauty </span>retailers, with floor plates from 1,809 to 2,090 sq ft.</p>
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<p><span>How to be upwardly- mobile<br></span></p>
<p><span>Ginza-style buildings only work best in core districts, where there is substantial footfall ie. enough customers to fill 20+ restaurants or bars in a single location! </span></p>
<p><span>According to an experienced Ginza-style developer, the optimal oor plate size is between 2,000 and 3,000 sq ft, enabling tenants to occupy the whole oor with a reasonable lump sum rental and adequate resources. They have attracted a number of new and ourishing businesses to start their operations, including international retailers and F&amp;B operators, such as Lululemon, Mango Tree (an authentic Thai restaurant from Bangkok) and Jamie’s Italian Restaurant, who have set up their first Hong Kong’s outlet in one of these buildings. </span></p>
<p><span>For developers, Ginza-style retail can squeeze greater value from an ordinary of ce building, especially those with small oor plates (&lt;3,000 sq ft). Tenant mix is crucial: smart asset management can create </span>a stronger theme or a hub with similar retailers or groups of retailers which attract similar customers.</p>
<p><a href="/images/2016/11/14/Screen%20Shot%202016-11-14%20at%201.09.30%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/14/Screen%20Shot%202016-11-14%20at%201.09.30%20PM.png" alt=""></p>
<p><span> For example, a building with a gym, spa services and healthy eating options will attract a stylish, tness-conscious clientele. Similar to traditional retail development, theming and branding are becoming increasingly imperative to stay ahead of the game. Henderson Land’s new-build H Queen’s on Queen’s Road Central, has an artistic theme, with spaces for art galleries as well as shops and restaurants.<br></span></p>
<p><span>A brand new development by H Development, Aura On Pennington aims to offer a ve-sense sensation in one destination to its customers, from art installations and motion- activated sounds to scent infusions and interactive signage. </span></p>
<p><span>Uphill struggles </span></p>
<p><span>Ginza-style retail does not guarantee success and comes with particular challenges. A key is vertical transport – can your elevators cope? A 20- oor building needs a rapid and efficient </span>lift system to ensure that shoppers don’t get bored of waiting in the lobby, especially at lunchtime. A single bad experience waiting for a lift could turn them off for good. If your lifts are slow, don’t ll the top oors with restaurants.</p>
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<p><span>A Ginza-style building also needs to be able to cope with the utility needs, such as water supply, electricity, oor loading and waste management, of its tenants. An older of ce conversion might not be able to cope with the needs of ve oors of F&amp;B operators. Stanley 11, for example, is able </span>to get around these problems for F&amp;B tenants by providing a grease trap and individually-controllable air conditioning. In addition to utility provisions, new technology such as free wifi, a digital directory and interactive restaurant queuing systems also help to enhance the overall customer experience.</p>
<p><span>In Hong Kong’s crowded retail market, Ginza-style retail offers a solution for both landlords and tenants. We foresee these buildings will remain a popular asset type. The key factors to bear in mind are: location, utility capacity, tenant mix and theming. Because this trend has grown over the last decade, a well-themed and curated tenant mix can mean the difference between success and failure.</span></p>
<p><em>This is an excerpt from <a href="https://www.savills.com.au" target="_blank">Savills World Research.</a></em></p>
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jonathanchancellor-7SQnKwU6yx

Making vertical retail work for Hong Kong: Savills

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<p>A limited shareholding in the Sydney Fish Markets is on the market through an expressions of interest campaign with price expectations above $5 million.</p>
<p>The NSW Government has announcement a $250 million redevelopment of The Sydney Fish Markets. The deal includes the current income from retail and office leasing, car parking and seafood wholesaling businesses as well as the opportunity to negotiate multiple business opportunities within the new Sydney Fish Markets development.</p>
<p>Ray White Commercial’s Charlie Yankos said the current owners were looking to retire after more than 25 years of operations at the Sydney Fish Markets.</p>
<p>“The sale also offers an opportunity to acquire a coveted spot on the Sydney Fish Market Board - giving the new purchaser the opportunity to be involved in the new development and acquire multiple retail sites," he said.</p>
<p>“This opportunity includes multiple income streams in the shareholding and operating business alone, returning more than $400,000 per annum under management.</p>
<p>“The redevelopment will mean increased foot traffic and shop space. As part of the area's redevelopment, the business will have an option to negotiate for additional floor space and fit-out costs potentially covered by the developer.</p>
<p>“Already a lucrative business with excellent profit margins, the redevelopment is set to double visitor numbers and elevate the Blackwattle Bay precinct to the premium location in Sydney to visit."</p>
<p>Matthew Holland from Ray White Business Sales said the fish markets’ footprint is set to double after the redevelopment and its leasable space increasing by 50 percent.</p>
<p>“Existing tenants will receive first options on new commercial space because they are also shareholders. We think all available space will be taken by them, that’s pretty much a given,” he said.</p>
<p>“The successful purchaser will be able to negotiate for additional floor space and fit-out costs that will be covered by the developer, within reason. </p>
<p>“The earlier they secure it, the greater their negotiation power will be at the new site,” he said, adding that shareholding also comes with voting rights, while a seat on the board is also available, although not guaranteed.  “If you are sitting on the board then things are much easier.”</p>
<p>Expressions of interest above $5 million are sought by close of business on Friday, December 9, 2016.</p>
<p>The current operating business under management is showing above $400,000 pa profits.</p>
<p>"The operating business itself is considered to be an industry-leader with a loyal local and international customer base.</p>
<p>"Having been established for over 25 years, it has been the recipient of numerous highly favourable reviews and articles over the years and is considered to be the foodie's/chef's first port of call," Matthew Holland said.</p>
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Retirement triggers Sydney Fish Market business listing with $5 million plus hopes

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<p>Actor Russell Crowe has quietly listed his Woolloomooloo Finger Wharf apartment as his matrimonial settlement with Danielle Spencer moves to its conclusion.</p>
<p>The vast harbourfront apartment has been an off market listing over the past month.</p>
<p>Already the buyer feedback is that it will be hard pressed to fetch the $25 million Australian apartment record, but Crowe is said to be realistic and wants it sold.</p>
<p>The Oscar-winning actor and Danielle were married in 2003 and separated in 2012. </p>
<p>The home of Crowe and Danielle Spencer set a record apartment price in 2003 when it cost $14.35 million.</p>
<p>No other apartment comes close in size with some 1000-square-metre at the tip of the <a href="https://en.wikipedia.org/wiki/Finger_Wharf#/media/File:Woolloomooloo_Bay_Sydney.jpg" target="_blank">Finger Wharf</a>.</p>
<p>The offering includes a 35-metre marina berth and seven car spaces. </p>
<p>Estate agent John McGrath, a former Sydney Boys High classmate of Crowe, has had select agents from his agency take buyers through over the past few weeks.</p>
<p>Buyers agents have been approached to present qualified buyers.</p>
<p>Crowe is only the second owner of the modern apartment on the tip of the heritage shipping wharf.</p>
<p>He bought it from the Nutrimetics founder Imelda Roche and her husband, the property developer husband Bill Roche.</p>
<p>The Roche's had bought it off the plan in 1998 for $9.8 million from the Walker Corporation.</p>
<p>Crowe previously owned the historic Elizabeth Bay residence Berthong, which he sold in 2003 for $11.5 million and which has been recently listed with $37 million to $40 million hopes. </p>
<p>In 2011 Crowe and Spencer spent $10 million on the Rose Bay trophy home, Te Puke after a four-year search.</p>
<p>Along the way they inspected the $50 million-plus Altona on the harbour in Point Piper in 2007, as well as unsuccessfully seeking pricey inland residence Le Manoir at Bellevue Hill, which fetched $23 million in 2009.</p>
<p>Spencer was always keen to spend more on the family home, while Crowe, prefered to keep his substantial Woolloomooloo apartment as a bolthole and limit the purchase.</p>
<p>Te Puke, a 1909 house updated with a 1927 Arts and Crafts-style additions, has been Spencer's home since their separation four years ago.</p>
<p>Crowe retains his 320-hectare property in Nana Glen, near Coffs Harbour. </p>
<p>The recent relationship Danielle has with her beau, Ad Long has triggered the decision to sell much of their property portfolio.</p>
<p>Crowe has also signalled he intends listing his Kingsford block of investment flats which have been the home of his former band members.</p>
<p>Crowe is expected to secure a Sydney base once the apartment is sold.</p>
<p>Before construction of the overseas passenger terminal at Circular Quay, the finger wharf was the main berth for overseas passenger liners.</p>
<p>It was rescued from demolition in 1991 after plans for a 440-berth marina were ditched.</p>
<p>Built between 1910 and 1914, the wharf, at 401 metres long, is the longest timber-piled wharf in the world.</p>
<p><em>This article first appeared in the Saturday Daily Telegraph</em></p>
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jchancellor-FAypfDUnLy

Russell Crowe lists Woolloomooloo Finger Wharf apartment

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<p>Chef Shannon Bennett has sold a majority stake in his hospitality empire to Singapore's wealthiest family for around $15 million.</p>
<p>The deal with billionaire brothers Robert and Philip Ng involves a portfolio of the city's top eateries, including flagship restaurant Vue de Monde and the Burnham Beeches redevelopment project.</p>
<p>He will act as the culinary brand ambassador for what is tipped to be a substantial restaurant expansion into Asia and the United States by Golden Developments, a subsidiary of Far East Organization, Singapore's largest private property developer.</p>
<p>The deal did not include any freehold property.</p>
<p>Forbes magazine estimates the owners the Ng brothers' fortune at $8.7 billion.</p>
<p>The deal, which valued the Vue Group's at $22.5 million, has not been formally announced by either party but contained in documents lodged with the Australian Securities and Investment Commission, obtained by The Age.</p>
<p>Bennett, who retains a 35 per cent ownership stake in Vue Group, opened his first restaurant in 2000. The flagship Vue de Monde restaurant, on the 55th floor of the Rialto in 2011, regained its third hat at The Age Good Food Guide awards in September.</p>
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Shannon Bennett takes on Singaporean partners

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<div>Property transaction volumes are reportedly declining in Sydney, and nationally.<br><br>There are about 9.75 million residential dwellings in Australia, but despite a record construction boom stock turnover has fallen to well below 3 per cent, and way below the historical averages.<br><br>There could be any number of reasons for this.<br><br>Like a property market Jim Bergerac, I took a look through this month's housing finance data angling for clues.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Reason 1 - Staying put!</span></strong></div>
<div> </div>
<div>We know that the ridiculous cost of stamp duty (and selling fees) is a discouraging factor for people wanting to move house in Sydney, the only real question is how much of a factor it actually is.<br><br>Sure, stamp has been around forever, but the bands were designed with old dwelling prices in mind, and only recently have duties become farcically high.</div>
<div> </div>
<div>Stamp duty receipts in New South Wales have more than doubled since June 2013 to $8.63 billion. </div>
<div> </div>
<div>In June 2013 the buyer of a median priced house in Sydney paid about $27,000 in stamp duty, mortgage fees, and transfer duties. Today, they'll pay nearly $45,000.</div>
<div> </div>
<div>That's a lot of capital growth required to justify the costs of moving house, so we'll arguably see a shift towards renovating and staying put (or buying cheap and renovating) just as we did at Sydney's previous cyclical peak in early 2004.</div>
<div> </div>
<div>In fact, that's already happened to some extent in Sydney, while renovations activity is rising steadily in Melbourne and Brisbane.</div>
<p><a href="/images/2016/11/14/b1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/14/b1.jpg" alt=""></p>
<p> </p>
<div>People will campaign for higher or different types of property taxes, but it's hard to see it happening in NSW while this unprecedented windfall is enriching the state government.<br><br>The state's finances are in enormous nick - debt free and racking up big surpluses!</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Reason 2 - The trusty buy &amp; hold strategy</span></strong></div>
<div> </div>
<div>A structural change over the medium term has been the "asset lock in" associated with property investors, with the prevailing tax legislation more or less compelling investors to use interest only loans and play a longer term capital growth strategy.</div>
<div> </div>
<div><a href="/images/2016/11/14/B4.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2016/11/14/B4.jpg" alt=""></div>
<div> </div>
<div>Again, investors have been around forever, of course, but since the latest round of monetary easing from 2012 this cohort has become a more substantial force in the larger capitals. </div>
<div> </div>
<div>The recent reclassifications of the stock of outstanding credit from investors to owner-occupiers are all too convenient to be taken seriously.<br><br>In any case, there has still been a 300 per cent increase in outstanding investor credit since 2003. Buy, hold, and compound the capital gains.</div>
<p><strong><span style="text-decoration: underline;"><br></span></strong><strong><span style="text-decoration: underline;">Reason 3 - Offshore investors</span></strong></p>
<div> </div>
<div>What of the residential construction boom?<br><br>In Australia non-residents are generally restricted to the purchase of new dwellings, thereby encouraging new construction, and this is clearly working now interest rates have been dropped.</div>
<div> </div>
<div>The housing finance figures show that domestic owner-occupiers accounted for only 31,500 or so financed purchases of new dwellings over the year to September 2016. </div>
<p><a href="/images/2016/11/14/B2.jpg" target="_blank"> Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/11/14/B2.jpg" alt=""></div>
<div class="separator"> </div>
<div>The numbers are up in the most of the larger capital cities, but not that much in the context of a record residential construction boom.</div>
<p> <a href="/images/2016/11/14/B3.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/11/14/B3.jpg" alt=""></div>
<div> </div>
<div>So, who is buying the new stock? Downsizing cash buyers would account for a proportion of new dwelling sales, super funds, and investors sold new stock by 'white knight' middlemen or advisors some more. </div>
<div> </div>
<div>But a huge share would be non-resident buyers, particularly now from China.<br><br>This is also a new trend - FIRB approvals have tripled in only two years!</div>
<div> </div>
<div>The Chinese phenomenon in Australian property in particular is a relatively recent one, so nobody can say for certain what trends will play out, but intuitively it wouldn't be a surprise if most non-resident buyers are in for the long haul.</div>
<div> </div>
<div>Arguably a fair proportion of dwellings bought by non-residents don't even make it to the rental market, let alone become resales. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>Unfortunately - unlike in <em>Bergerac</em> where the culprit was invariably either one of lovable rogue Charlie Hungerford's mates or someone related to the glamorous jewel thief - there is no singular  explanation for why transaction levels are down.</div>
<div> </div>
<div>High transaction costs represent one valid argument. </div>
<div> </div>
<div>Perhaps most people wanting to move house in this cycle have already done so, and the line of willing sellers is becoming exhausted. </div>
<div> </div>
<div>Other prospective vendors may fear that if they sell they might never get into the market as prices levitate away from them, for despite a thousand warnings prices are again forecast to rise strongly in Sydney, Melbourne, and Brisbane in 2017 (and with listings down, there are fewer homes to pick from). </div>
<div> </div>
<div>Certainly with so much hype around, lots of vendors may just decide that the easiest option is to do nothing.</div>
<div> </div>
<div>And finally, arguably a higher proportion of owners and investors are simply using real estate as a long term inflation hedge, due to rising land prices. </div>
<div> </div>
<div>
<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
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pwargent-M4siyDbqQY

3 reasons why property sales volumes are declining: Pete Wargent

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<p>Laurance Wines in Western Australia has been sold to a US investor for $30 million.</p>
<p>New York based real estate developer and wine enthusiast Howard Milstein has purchased the property which will be partly leased to the Oatley family and Larry Cherubino Wines.</p>
<p>Brian Moultan, ACTON South West director said he believed the deal to be the highest value vineyard sale of all time.</p>
<p>“We sold Clairault six years ago for $16 million, but there’s been nothing beyond that that I’m aware of,” he told Business News.</p>
<p>“It’s good that valuers in the future now will have to consider this price per hectare of land and price per hectare of vines, but it’s still a pretty tough market – there is still a degree of nervousness out there,” Mr Moulton said.</p>
<p>Mr Moulton is also actively marketing Edwards Wines, a family-owned estate near Cowaramup that he said was also attracting significant interest, particularly from foreign investors.</p>
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j.ballantyne1990-6AQqhLzZaK

New York real estate developer buys WA's Laurance Wines 

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<p>The commercial real estate market stabilized in Q3’16, declining by a marginal 1.1 percent year-over-year, according to REAL Capital Analytics latest report.</p>
<p>After a slow H1’16, $30.4b of income-producing investments were recorded. Development site sales, a key aspect of the Asia Pacific real estate universe, reached $76.3b in Q3’16.</p>
<p>Investment activity in the quarter was largely driven by a number of portfolio transactions in China and Japan, potentially masking a lack of liquidity in Asia Pacific.</p>
<p>Primary concerns such as interest rates hikes, emerging economy bond markets, and political risks are still challenging investment decisions.</p>
<p>Portfolio deals collectively counted for 43 percent of overall volumes in the region. As a result, the market saw fewer active buyers and deals completed.</p>
<p>China outperformed the rest of the region, recording $10.0b in direct real estate transactions in Q3’16, a 28 percent YOY increase. With now one-fifth of the overall activity in the region, China has overtaken Australia to become the second most active Asia Pacific market.</p>
<p><a href="/images/2016/11/08/quarterly%20transaction%20volume.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/08/quarterly%20transaction%20volume.jpg" alt=""></p>
<p>Cross-border activity continued to grow and accounted for 33 percent of total volume in Q3’16. This surprise increase is largely caused by a decrease of total purchases by domestic investors, rather than a strong expansion in cross-border capital.</p>
<p>In fact, domestic investment volumes declined by 8 percent YOY to $19.0b. Much of this decline in domestic activity was due to strong Asian outbound capital into global markets such as the U.K., U.S. and continental Europe.</p>
<p>Asia Pacific yields remained largely stable over the quarter. One exception was Australia where property yields compressed by additional 20 bps across all asset classes and geographies, pushing pricing closer to its 2007 peak levels.</p>
<p>Meanwhile in Japan, yield compression slowed down dramatically as commercial property yields reached their peak levels and market activity tapered.</p>
<p>Due to aggressive pricing, foreign buyers are struggling to compete with strong domestic competition and as a consequence became net sellers for the first time this cycle.</p>
<p>The uptick in investment volume in Q3’16 may give the impression of an improving market, following year-over- year declines in the first and second quarters.</p>
<p>However, the economic fundamentals and the ultimate drivers of real estate income have not changed.</p>
<p>Most importantly, when looking at the volumes in greater detail, Q3’16 was driven by a number of portfolio transactions in China and Japan.</p>
<p>In fact, portfolio deals − five of these above $500m – collectively counted for $13.0b, representing 43 percent of overall investment volumes in the region.</p>
<p>As such, the market saw fewer active buyers and deals completed in the quarter. The largest portfolio was CITIC China Overseas $4.7b (RMB31.6t) residential assets sale, which resulted in an increase in apartments sector growth.</p>
<p><a href="/images/2016/11/08/picture%202.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/08/picture%202.jpg" alt=""></p>
<p>Looking only at single assets, investments have been focused on the office sector, where the majority of core, secured income, long-term stable assets can be found.</p>
<p>The trend of increasing deal size in the office sector continued. (See Q2’16 report.) The average deal size in the office sector grew by another 2 percent QOQ to $80.0m.</p>
<p>The theme of a mismatch between buyer and seller expectations also recurs this quarter. Property yields in most markets remained largely unchanged, Australia being the exception.</p>
<p>Across all Australian cities and asset classes, 12-month average yields declined by 20 bps in Q3’16, reaching their historic 2007 low. In general, the markets for income-producing real estate seem fully priced.</p>
<p>However, as future new investment opportunities narrow, we may see prices shifting even higher.</p>
<p><a href="/images/2016/11/08/commercial%20transaction%20yields.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/08/commercial%20transaction%20yields.jpg" alt=""></p>
<p>As a result of high demand for core real estate, and with pricing at historic peaks, investors are searching for new alternatives.</p>
<p>While some look for more creative strategies in the value-add and opportunistic space, others have found warehouse and logistics assets a feasible alternative.</p>
<p>Investment volumes in the industrial sector reached $3.5b in Q3’16, a 32 percent YOY increase.</p>
<p>Historically, Japan and Australia dominated the space – representing 66 percent of overall transaction activity – but new urban locations for development, particularly in China, have started to appear.</p>
<p><a href="/images/2016/11/08/industrial.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/08/industrial.jpg" alt=""></p>
<p>China outperformed the rest of the region, recording $10.0b in direct real estate transactions in Q3’16, representing 28 percent YOY growth. With this strength, China now represents one-fifth of the overall activity in the region, the largest share historically.</p>
<p>China has overtaken Australia in terms of income-producing property volume in Asia Pacific and is now the second most active market. This is partially driven by a number of mega portfolio deals completed this quarter, but the ongoing appetite for Chinese real estate is robust.</p>
<p>Furthermore, development site activity in China recorded yet another quarter of strong activity.</p>
<p>Domestic Chinese developers continued to expand their land banks, collectively investing $226.9b (RMB1.9t) in the first nine months of 2016.</p>
<p>Regardless of an increasing risk of oversupply in some of the Chinese cities, developers remain con dent and land prices are increasing substantially.</p>
<p>According to RCA analysis, the average development site price in China increased by 54 percent YOY in Q3’16.</p>
<p><a href="/images/2016/11/08/yoy%20change.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/08/yoy%20change.jpg" alt=""></p>
<p>In Hong Kong, activity continued to be boosted by mainland Chinese investors’ purchases, based on confidence fueled by relatively limited new supply and low vacancy rates.</p>
<p>The total volume in Hong Kong reached $2.8b. Hong Kong and China are the only two markets currently with market share above their long-term average share of total Asia Pacific volume.</p>
<p>In contrast, volumes fell by 27 percent YOY in Japan, pushing its market share sharply below its long-term average. Primarily, this is driven by a lack of suitable stock and the reluctance of active buyers to pay current prices.</p>
<p>It should be noted that holding periods on repeatedly sold assets are increasing – a trend common not only to Japan but widespread around the region as investors are increasing reluctant to sell their holdings in the current environment.</p>
<p><a href="/images/2016/11/08/market%20shares%20winners%20and%20losers.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/08/market%20shares%20winners%20and%20losers.jpg" alt=""></p>
<p>Meanwhile in Australia, the market sentiment remains positive, supported by relatively stable investment volumes.</p>
<p>In Q3’16 $5.1b was transacted, placing Australia at its long-term average. There is further upward pressure on property prices, however, and yields have been compressing further across all asset classes and geographies.</p>
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Commercial real estate market stabilizing after last quarter with small decline in year-over-year

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<p>An industrial site spanning 23,786sqm in the Brisbane suburb of MacGregor has been sold to retailer Harvey Norman.</p>
<p>The property, 572 and 588 Kessels Road, and features over 10,000sqm of existing NLA which is currently occupied by Asahi Beverages.</p>
<p>Matthew Frazer-Ryan and Anthony White of Colliers International negotiated the sale. White said the site is situated in a large format retail precinct with over 80 enquiries and multiple offers from high net worth investors and developers. </p>
<p>“The strategic location of the site is vital for the future growth of their store footprint," he said.</p>
<p>"MacGregor is a strong performing precinct and Harvey Norman will work over the medium term towards a development outcome that will add even more diversity for customers in this precinct.</p>
<p>“Sites of this size with main road exposure and high level of existing infrastructure in place are increasingly rare throughout Brisbane, particularly as residential rezoning has been prevalent."</p>
<p>Harvey Norman plan to build a large format centre on the location.</p>
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Harvey Norman buys MacGregor supersite

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<p>In my blogroll I link to some useful sources for the diminishing number of fans of Australian share markets, including Motley Fool (stock picking) and Montgomery (value fund).</p>
<p>Both have put out pieces recently talking about the property market peaking.</p>
<p>Demonstrating excellent efficiency Motley Fool simply released a near carbon copy of last year's note, while by my last count Montgomery has run no fewer than seven articles in a dozen days (could be eight, I've lost count). An impressive hit rate indeed!</p>
<p>Of course, as a property market advisor, I'm duty-bound to say that just as there is no one 'share market', so do homebuyers buy one house, and not the entire real estate market with all of its gleaming dog-boxes in the sky.  </p>
<p>In any case, share market promoters predict property market downturns every year; it's all part of the sales pitch. </p>
<p><strong><span style="text-decoration: underline;">Why property?</span></strong></p>
<p>I do a good deal of my work with hedge funds, and one of the points which often requires explanation to curious visitors from overseas is why everyday Australians even invest in property at all.</p>
<p>Good question. It's partly because Aussies are encouraged or incentivised to do so, since the government invests as close to zero as makes no difference in the provision of rental housing.  </p>
<p>It's also because because Australia is one of the most urbanised nations on earth, with a population broadly set to double by mid-century, and with more than four fifths of that population growth expected to be in just a handful of capital cities. </p>
<p>Investors fancy that by owning property in middle ring capital city suburbs, land prices will rise over time, and over any meaningful period of time they've consistently been very handsomely rewarded for taking that view.</p>
<p><a href="/images/2016/11/11/LAND.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/11/LAND.jpg" alt=""></p>
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<div class="separator">Perhaps even more important than all of the above, it's because with our compulsory superannuation contributions tens of thousands of Mum-and-Dad investors saw their retirement plans cruelly FUBAR by the last share market crash (it's a family blog, so you'll have to look up a few of today's acronyms). </div>
<div class="separator"> </div>
<div class="separator">Small wonder that people look at bricks at mortar as an investment option with mortgage rates close to record lows. </div>
<div class="separator"><strong><span style="text-decoration: underline;"> </span></strong></div>
<div class="separator"><strong><span style="text-decoration: underline;">Elephant in the room</span></strong></div>
<div class="separator"> </div>
<div class="separator">Since we're on the subject of asset classes that are set to underwhelm, let's talk about Aussie shares!</div>
<div class="separator"> </div>
<div class="separator">The towering elephant in the room is that Australia's share market has been performing atrociously, with the ASX 200 some 24 per cent below where it was nearly a decade ago, despite yesterday's bounce and in spite of the lowest interest rates on record ("time in the market....lol).</div>
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<div class="separator"><a href="/images/2016/11/11/4%20XJO.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator"><img src="/images/2016/11/11/4%20XJO.jpg" alt=""></div>
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<div class="separator">Since December 2012 while record low rates have pushed the S&amp;P 500 around 50 per cent higher, Australia's ASX 200 is struggling to record any gains at all (not that this is a new phenomenon - hardly! - Aussie stocks have chronically underperformed the S&amp;P 500 for well over two decades). </div>
<div class="separator"> </div>
<div class="separator">And what's more, since we have an index that has a fair weighting towards resources stocks, the market is not even heading back to 6000 any time soon, at least not sustainably, however much the vested interests may try to talk it up. </div>
<div class="separator"> </div>
<div class="separator"><span>Thanks to collapsing resources earnings, the market is actually offering less value than all those years ago, not more, as measured by forward PE ratios.</span></div>
<div class="separator"><span> </span></div>
<div class="separator"><span>What's that you say? Ah, you don't invest in the market, you invest in individual securities? Ha, t<span>ouché!</span></span></div>
<div class="separator"><span><span> </span></span></div>
<div class="separator">Yes, I know, I know, it's all about the dividends (assuming that those don't get slashed as well). </div>
<div class="separator"><span><span> </span></span></div>
<div class="separator"><span><span><strong><span style="text-decoration: underline;">Market is not returning to 2007 peak</span></strong></span></span></div>
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<div class="separator">In my opinion, the share market is more likely to fall than rise, just as soon as the latest ridiculous spike in commodity prices inevitably reverses, and as APRA taps on the credit brakes again.</div>
<div class="separator"> </div>
<div class="separator">When I wrote my first book in 2011, I set out some introductory guidelines for how investors should assess 'value' in the share markets.</div>
<div class="separator"> </div>
<div class="separator">I noted in that book that healthcare was definitely a sector worthy of attention, not only because I'd previously worked in the listed healthcare sector as a Group FC - spending endless hours and weekends fine-tuning my beloved Annual Reports and ASX releases - but because of our ageing population.</div>
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<div class="separator"><strong><span style="text-decoration: underline;">Volatility</span></strong></div>
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<div class="separator">Share market investors could be forgiven for being confused, as there is a lot of conflicting advice around. Some like to invest actively or trade, others like to invest passively with low fees, others still take a more focused or value approach.</div>
<div class="separator"> </div>
<div class="separator">As a value investor, Montgomery has previously noted that technical analysis is "nonsense", which may well be so, but TA does at least present market participants with some guidance for when to sell. </div>
<div class="separator"> </div>
<div class="separator">Value investors need to be rigorous, and to employ a considered judgement call for when a stock is no longer offering value, all the while benchmarking a portfolio against new opportunities as they arise. </div>
<div class="separator"> </div>
<div class="separator">One of the challenges for value investors is that the most mouthwatering opportunities inevitably lie outside the largest listed companies, in smaller and more dynamic businesses with far greater potential for growth.</div>
<div class="separator"> </div>
<div class="separator">These mid-cap companies have potential for greater returns, and can be more volatile (higher beta, if CAPM is your thing), which means that you might sometimes need to be able to cope with large drawdowns. </div>
<div class="separator"> </div>
<div class="separator">Here's value stock favourite Vita Group (VTG), for example, which recently crashed spectacularly. </div>
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<div class="separator"><a href="/images/2016/11/11/2%20VTG.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><img src="/images/2016/11/11/2%20VTG.jpg" alt=""></div>
<br><div>And in the healthcare sector, which has performed tremendously well in recent years, here's another favourite value stock Healthscope (HSO), which has also recently crashed.</div>
<div> </div>
<div><a href="/images/2016/11/11/3%20HSO.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2016/11/11/3%20HSO.jpg" alt=""></div>
<br><div>It's also been quite a rollercoaster ride for value investors' favourite Sirtex Medical (SRX) over the past year, which rose quite impressively before crashing.</div>
<div> </div>
<div>
<a href="/images/2016/11/11/SRX.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><img src="/images/2016/11/11/SRX.jpg" alt=""></div>
<br>A value investor's motto is that you should buy shares like you buy groceries (i.e. BTFD...more acronyms sorry) and therefore theoretically these crashes in the share price can represent buying opportunities.<br><br>Assuming that you still see the intrinsic value stacking up, and assuming that you are right and the market is wrong, that is.<br><br><strong><span style="text-decoration: underline;">Buyer beware</span></strong> </div>
<div>
<br>Like you and me, all businesses have a life cycle. They are born, they grow, and one day, they wither and die (or merge, or get bought out, or taken over).<br><br>For that reason a value investor must know when to sell as well as when to buy.<br><br>
</div>
<div>Forge Group (FGE) was one of Montgomery's "A1" services businesses of yesteryear, while Decmil (DCG) was another favourite, both of which ran into trouble after the resources capex cycle peaked in 2012.<br><br>Fortunately Montgomery is a market pro, and being in the market full time he has the ability to manage risk, so in turn he was able to see the writing on the wall for the mining service sector and sold out in 2012 before the SHTF.<br><br>The way in which this is possible is to forecast the economy and its unpredictable cycles, and to recalculate the intrinsic value of a security on an ongoing basis.<br><br>In my experience, too many amateur investors fall in love with their analysis, and while they enjoy the process of buying stocks they find that breaking up is harder to do (too often they think the market is wrong, when perhaps it is the outlook for the company or sector that has changed).<br><br>Here's what happened to Decmil (DCG), which struggled to stay profitable after the resources investment boom peaked in 2012:<br><br><div class="separator"><a href="/images/2016/11/11/DCG.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><img src="/images/2016/11/11/DCG.jpg" alt=""></div>
<br>Forge Group (FGE) went to the wall almost overnight in 2013 after massive power station losses were unexpectedly revealed to the market, with Forge's Managing Director David Craig (not the singer) noting that the this was "extremely disappointing".<br><br>David Craig (not the singer) proved to a master of understatement as he noted that unexpected writedowns on two power stations for the 2013/14 financial year totalling $127 million were "not acceptable to the board". Probably not that acceptable to shareholders either, tbh.</div>
<div> </div>
<div><a href="/images/2016/11/11/1%20Forge.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/11/11/1%20Forge.jpg" alt=""></div>
<br><div>Even in September 2013, just before the company went into administration, the intrinsic value of FGE was said to be above $13 (when the real value was closing in on $nil, had the full story been disclosed to the market). </div>
<div>
<br>Herein can lie some of the many challenges with value investing in individual stocks - companies can report half-truths, or mask enormous losses, or trade while insolvent, or sometimes even worse. </div>
<br><div>In case you think you won't ever pick a dud stock, recall that Warren Buffett recently took an enormous bath on his huge investment in Tesco, when a corporate fraud was uncovered in the guise of aggressive accounting and overstated profits.<br><br>
</div>
<strong><span style="text-decoration: underline;">ASX to fall</span></strong><br><div> </div>
<div>Don't be duped into believing that the Australian share market offers better value just because the index is still much lower than it was in 2007. It doesn't.<br><br>In fact, in my opinion the index is probably heading lower when the prices of coal and iron ore crash again, and, as always, it's only a matter of time before the next 30 to 50 percent drawdown. So you'd better be prepared. </div>
<div> </div>
<div>
<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
</div>
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Why Australians invest in property

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<p>Sales activity in the Brisbane retail world is starting to slow with stock generally being very tightly held, according to Herron Todd White’s (HTW) latest report.</p>
<p>The property advisory firm says that sellers cannot easily replace their investments with equivalent yields in any other asset class.</p>
<p>Yields for neighbourhood centres have continued to tighten throughout the course of 2016, however, there is now a perception that we are approaching the top, primarily due to the tightening market for funding which is now requiring greater levels of equity.</p>
<p>The overwhelming demand for well leased retail stock in the sub $5 million market has created a seller’s market with buyers often cascading from one sales campaign to the next.</p>
<p>When they miss out on the first property the urgency to buy the next can be very strong.</p>
<p>Most activity remains in the convenience and neighbourhood sectors, but even there the quantum of transactions is slowing.</p>
<p>It is also now timely to pause and reflect on the quantum of capital growth that has occurred in these markets over the past three years.</p>
<p>A good recent example is the sale of the Sandstone Point IGA anchored centre which recently sold for $10.395 million showing a yield of 7.04%.</p>
<p>This property sold three years earlier for some $8.25 million and showed capital growth of 26% over that period. This is reasonably reflective of the neighbourhood and convenience centre markets generally.</p>
<p>More broadly, yields for well leased neighbourhood centres in strong locations are now well entrenched in the low 6% yield range.</p>
<p>Service stations are also hot at the present time.</p>
<p>The Caltex complex at Northlakes was recently contracted at a yield of 5.13%, showing a staggering 48% capital growth over a three year period since its previous purchase.</p>
<p>Whilst demand is likely to remain strong, we consider that the market is nearing the peak with the likelihood of yields bottoming out over the next six to 12 months.</p>
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