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

Joel Robinson

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

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

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

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

Owners move in as Esprit completes at Rainbow Bay

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

Mosaic's Midas Touch

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

Groundbreaking marks start of construction at Keira Place in Wollongong CBD

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

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

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There are many benefits developing property will bring, but what should you focus on when assessing a development opportunity?
I get lots of calls and love speaking to people about property development. It’s interesting to see what kind of questions are raised. There is one question that is asked often and that is; “what kind of Return on Investment (ROI) do we get from our development projects?”
Even though our ROI is pretty good, it varies from project to project - this can be a dangerous way to assess the success or otherwise of a property development.
“ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments. The return on investment formula is: ROI = (Net Profit / Cost of Investment) x 100.” Source: investinganswers.com
It can be a bit misleading to compare ROI on different opportunities as you need to be sure that you are comparing apples with apples. In Property Bloom cost calculations, we include every single cost, fee and charge, including our project management fee. But there is one thing that is hard to put a cost on.  Time.
Having a development professionally managed saves our clients valuable time.  If you didn’t use a project manager and made a higher ROI but your development took you twice as long to complete, then you need to consider the ROI over say two years instead of one. 
But focussing on ROI can also mean that you are missing the other valuable advantages that property development can bring. These include:
-       Yield – higher yield is created through adding value, this leads to passive income
-       Strategy Flexibility – hold them, sell them, hold a few or sell a few
-       Equity creation – whilst waiting for capital growth, access the equity that has been created through the development process by refinancing/selling
-       Depreciation – create tax credits
-       Fast growth of portfolio – increase your collection of properties quickly
-       Experience – with each development, your experience widens
-       Fun &amp; exciting – beats watching TV
So, there are many other ways apart from the ROI, to assess what you’ll get out of a development project and it’s worth considering the bigger picture.
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a><a href="https://www.propertybloom.com.au/">.</a>
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jochivers-wq5Bp59R5a

Is ROI the best way to assess a development project?

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A food factory investment opportunity at Dandenong in Melbourne’s south-east has been sold by Ray White Commercial.
Its $550,000 price reflected a 7.2% yield.
The property leased to Z &amp; W Group (Aust) Pty Ltd at 1/23 Egan Road, Dandenong, was sold to a private investor.
Ray White Commercial Oakleigh’s Ryan Amler said the tenant commenced a three-year lease with a further three-year option in May, 2016, and the property returns net rental of $39,600 per annum.
The property has a building area of approximately 310 square metres and is equipped with freezers, a cool room and other plant and equipment valued at more than $250,000.
“This is a fully equipped food factory that enjoys easy access to major arterials including EastLink and the Princes Highway,” Amler said.
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Food factory at Dandenong sold for $550,000

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The Hurricane Hill Quarry at Culcairn, about 50 kilometres north of Albury, has been sold at auction for $4.5 million.
The buyer, Tranternet Pty Ltd, proposes to hold the property as a long term investment.
Ruralco Property’s state manager for real estate Mike Everard had estimated it would sell for between $3 million and $4 million.
The property is based on a reserve of rhyodacite rock estimated at an unquarried resource of about nine million tonnes.
It recent annual production volumes have been of about 250,000 tonnes with Fairfax Media reporting a permitted expansion up to 750,000t.
The quarry has operated on the site for about eighty years with building material supplier Boral having acquired the operating licence about twenty years ago.
The auction was on behalf of a descendant of the original family that has owned the freehold property for generations.
The site includes 110 hectares of freehold land, part of which has been cropped or used for dryland grazing.
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Culcairn quarry sold

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Infrastructure growth is a key demand driver in the Melbourne industrial property market and as a distribution hub, the West has benefitted from its excellent road infrastructure, according to Colliers International’s latest report.
Freight volumes have continued to expand over the years and so has the need create a more efficient system to move freight in and out of the port.
Intermodal freight terminals have gained traction on the back of this, with Salta’s Nexus Industrial in Altona being one such development.
Industrial assets should also benefit from the Western Distributor project which is currently underway and includes upgrades to the West Gate freeway and Bolte Bridge ramp, in addition to a connecting tunnel to the Port of Melbourne, CityLink and the CBD.
Tenant enquiry has more than doubled over the last 12 months, where the majority of this demand was concentrated on properties above 5,000sqm and smaller lots below 3,000sqm.
Demand has been strong over the year, with a significantly larger proportion of tenants enquiring for purposes of expansion and relocation in comparison to 2015, mainly for immediate tenancy.
While tenant demand has intensified, the in flow of speculative development has continued to wane, with the remaining speculative stock available for lease split between Frasers Property and the Goodman Group.
Prime Grade Net face rents are currently in the $70-80sqm range, while Secondary Grade assets range between $50-60sqm. Based on current levels of tenant enquiry, we expect to see solid growth in rents over the medium term, as renewed tenant interest from strong infrastructure and business expansion tightens vacancy in the market.
The pipeline for land supply has also thinned, with ready to go, subdivided land in limited stock. There are currently only four estates that have titled land and we expect  five more estates to come online in 2017, 60 per cent of which has already been sold.
The lack of available properties in a competitive environment should continue to reinforce growth in land values, which should translate into solid capital growth and further yield compression over the next 12 months.
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Industrial market to benefit from Western Distributor project in West Melbourne

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Warehouse and workshops rents improved slightly during the second half of 2016 in Newcastle, with rental rates ranging from $90 to $110, according to Colliers International's latest report.
Warehouse rents continue to comprise the majority of vacant space within prime industrial locations such as Beresfield, Thornton, Mayfield and industrial suburbs surrounding the Port of Newcastle.
Rental rates are predicted to improve during 2017 due to a recovering economy and the increasing presence of owner occupiers absorbing vacant stock.
Incentives within the Newcastle market are typically associated with the leasing of larger facilities for lease terms greater than three years and range between 8 per cent to 10 per cent of the lease term certain.
The majority of lease deals negotiated during the second half of 2016 in prime industrial areas have featured incentives less than this, with most incentives being experienced for older industrial facilities in secondary and fringe industrial locations.
The current low interest rate environment, a strengthening local economy and stable industrial land values have contributed towards increased enquiry from owner occupiers within the Newcastle industrial market during the second half of 2016 (approximately 15 per cent from Q1 2016).
This increased demand from owner occupiers has resulted in an uplift in values for properties sold with vacant possession.
Colliers International has witnessed properties being listed for lease receiving strong demand from owner occupiers, with circa 60 per cent to 70 per cent of properties listed for lease being sold.
Colliers International expects owner occupiers to continue to dominate enquiry throughout Q4 2016 and Q1 2017.
The higher ratio of owner occupiers to tenant enquiry is highlighted in the following graph.
<a href="/images/2016/10/25/Perth%20H2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Perth%20H2.jpg" alt="">
Increased demand from owner occupiers capitalising on the historically low interest rates and improving business confidence, has resulted in uplift in values for properties sold with vacant possession.
The most prevalent has occurred within the sub $1.5m price bracket due to affordability for self managed superannuation funds, seeking opportunities within premium industrial locations such as Beresfield, Cardiff, Thornton, Warabrook and inner city locations.
The demand in the investment market for high quality industrial assets in Newcastle, the surrounding Hunter and Central Coast Regions continue to firm.
Small to medium sized facilities are achieving yields ranging from 6.45 per cent for inner city showroom/warehouse facilities in prime locations to 8.52 per cent for larger industrial facilities with strong lease covenants.
Recent notable industrial sales indicate strong demand exists from high net worth investors and self managed funds.
The main attributes these investors are looking for include location, covenant strength, lease term/Weighted Average Lease Expiry (WALE), lease provisions and building age/capital expenditure requirements.
Recent transactions within the Newcastle region from Q1 2016 to Q3 2016 are listed in the table below.
<a href="/images/2016/10/25/Investment%20sales.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Investment%20sales.jpg" alt="">
The Newcastle Region industrial land market is showing signs of improvement reflected in increased enquiry level and demand for larger lot sizes.
Demand for industrial land during the second half of 2016 has steadily improved, primarily driven by owner occupiers looking at site specifics and value for money offerings; however access to labour is also a key driver in the Hunter market.
This has been evidenced with developments by Sandvik at Heatherbrae, WesTrac at Tomago and Bradken in the Steel River Estate at Mayfield West, Aurizon at Hexham and Aldi’s proposed NSW Distribution centre in Beresfield.
Serviced industrial land supply is limited to around four key industrial precincts including Beresfield, Rutherford, Steel River Estate in Mayfield and Cardiff. Supply and pricing as at June 2016 is as follows:
<a href="/images/2016/10/25/Land%20supply.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Land%20supply.jpg" alt="">
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Owner occupiers dominate the Newcastle industrial market

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A Caltex service station in the Central Coast town of Woy Woy has fetched $2.98 million at a recent auction.
Ray White Commercial sold <a href="https://www.realcommercial.com.au/property-retail-nsw-woy+woy-502107462" target="_blank">62-68 Memorial Ave</a> to a private investor for an annual return of 8.1%.
Its net rent was put at $243,000.
There was a lease in place until 2023 with three five-year options available.
It last sold at $200,000 in 1997.
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Woy Woy Caltex sold at $2.98 million

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Industrial tenants are seeking suburbs around the newly opened Dingley Bypass confirming predictions that the new $156 million link road would drive local economic growth.
Savills Director Industrial, Gareth Jackson, said in the 12 months to September 160,000 square metres of leases (1000sqm +) have been recorded while sales have been more than $42 million across the Dingley, Moorabbin, Cheltenham, and Braeside industrial precincts.
"The market’s reaction to the new road both before and after its opening has been phenomenal to say the least. Enquiry since the road opened has especially been strong.
In the last six months alone nearly 100,000 square metres of industrial space has been leased and sold and much of that can be attributed to the primary business rationale that had formerly lured tenants to other areas – improved road infrastructure,’’ Mr Jackson said.
<img src="/images/2016/10/26/Dingley%20Bypass%20aerial.jpg" alt="">
In the latest deals, brokered by Mr Jackson and Director Lynton Williams, an undisclosed tenant has leased a 12,660 square metre distribution centre at 41-51 Mills Road, Braeside while Global Trading solutions has leased 2951 square metres at 31-33 Lakewood Boulevard, Braeside.   
Other recent deals include:
<ul>
<li>355 Warrigal Rd Cheltenham – 1765 square metres;</li>
<li>354 Boundary Rd  Dingley– 2200 square metres; and,</li>
<li>13 Lennox Street Moorabbin – 1000 square metres.</li>
</ul>
The 6.4 kilometre, six lane, Dingley Bypass which links Warrigal Road at Moorabbin and Westall Road at Dingley Village was opened five months ahead of schedule in March, by Minister for Roads and Road Safety, Luke Donnellan, with the promise of reduced traffic delays and congestion and improved traffic flow on the road network with more direct road connections.
Mr Jackson said the Dingley corridor industrial precinct had been historically, a tightly held precinct, based on its relatively close proximity to the CBD, via the Nepean Highway, the Moorabbin Airport and affluent ‘sand belt’ suburbs.
However, over the years, tight vacancy levels and road infrastructure improvements in other locations had gradually attracted tenants away from the region, Mr Jackson said.
"I guess you could say the region temporarily fell out of favour as new industrial developments opened up farther from Melbourne along new transport routes, including EastLink, but more recently the tables have turned and the Dingley Bypass has been the catalyst,’’ Mr Jackson said.
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Dingley Bypass a boon for local industrial property

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An industrial warehouse/office at Clayton South in Melbourne’s south east has been sold by Ray White Commercial Oakleigh.
The vacant property at 196/248-266 Osborne Avenue, Clayton South, was sold for $345,000 to a local owner-occupier by Paul Rizzo of Ray White Commercial Oakleigh on behalf of a local owner.
Mr Rizzo said the property which offered a net lettable area of approximately 252 sqm was sold 24 hours after it was passed in at auction.
“We had a good response to the marketing campaign and more than 15 people at the onsite auction despite miserable weather,” he said.
“We had two bidders but the property was passed in.
"We reached a deal with one of the bidders the day after the auction.”
The building includes approximately 100 sqm of office space on the first floor and there was parking onsite for three vehicles.
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Vacant warehouse/office at Clayton South sold for $345,000

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Backpacker accommodation right opposite Bondi Beach, on Campbell Parade has been listed for sale.
It is the <a href="https://www.realcommercial.com.au/property-hotel+leisure-nsw-bondi+beach-502144966" target="_blank">Bondi Backpackers property</a>.
Craig Pontey of Ray White Double Bay, who is taking the property to auction, say it has 52 rooms accommodating 138 guests in configurations from single rooms to 6-person dormitory rooms.
There’s additional income from two prime retail tenancies that also front Campbell Parade: Bavarian Bier Café and Backpacker World Travel.
"Total income from the property is currently in the order of $1.364,989 per annum, and as an ideal owner-operator business," he said.
"I believe that there’s considerable potential to increase income," he said.
The site area is 448 sqm with a 12m frontage to Campbell Parade.
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Bondi Backpackers on Campbell Parade, Bondi Beach for auction

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Ray White Hotels Australia and CBRE Hotels have listed the beachside institution, The Clovelly Hotel.
It has been trading for over 150 years.
"The Cloey is one of those folklore hospitality businesses that most Sydney-siders, and numerous others from much further afield, will have an affinity with" commented Andrew Jolliffe.
Iris Capital bought it in 2008 and extensively renovated in 2012.
Conjunction agent Daniel Dragicevich noted an element of the $9.1M in annual sales is notionally underwritten by the sheer weight and regularity of visitors to the area.
"There's no coincidence that the list of owners of other iconic beachside hospitality properties reads like a veritable hotel industry hall of fame roll call" concluded Daniel Dragicevich noting Justin Hemmes (Coogee Pavilion), Chris Cheung (Coogee Pavilion), Kim Maloney (Bondi) and Arthur Laundy/Fraser Short (Watsons Bay). 
The Clovelly Hotel is being sold via an international EOI process until November 23 meaning the successful purchaser can potentially take advantage of the legendary Christmas and New Year trade enjoyed by the hotel.
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