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 few real estate activities more depressing than observing a media debate about housing affordability.
It’s a downer because it’s clear from the rhetoric that this nation is unlikely to ever achieve any kind of resolution of the issue.
There are four reasons: (1) the politicians don’t understand it and/or are unwilling to do what’s needed; (2) industry people who do understand it champion their vested interests rather than the national interest; (3) everyone else has their heads full of misinformation, political agendas and unhelpful emotion; and (4) most discussions focus on Sydney prices and ignore the realities in other parts of Australia.
The outcome is mishmash of misconceptions, myths and outright lies. Nothing useful is ever achieved.
A recent discussion of ABS TV program The Drum was representative of how bad it gets. None of the people at the discussion table had any knowledge on the issue and simply indulged their prejudices and personal agendas. One spectacular twit claimed no one can get into the housing market any more because you need a $200,000 deposit to buy a typical house. Not even in Sydney is that remotely close to the truth.
The so-called affordability crisis is never far from the headlines and it stepped up in prominence this week with Federal Treasurer Scott Morrison declaring he was serious about fixing the problem. But of course he wasn’t serious at all. He essentially dumped the problem at the feet of state governments, with a generalised assertion that taking steps to increase dwelling supply will make everything better.
That’s one of the subject’s biggest furphies – a simplistic policy of lifting supply won’t force down prices unless the idea is to deliberately generate a major oversupply. One thing Morrison got right was his statement that you won’t fix the problem by crashing the market.
As a general observation, we don’t need more dwellings in Australia. We’re already building far too many apartments, which will result in falling values, but only in specific areas such as the inner-city unit markets of Melbourne, Brisbane and Perth, as well as surfside Gold Coast. This runs contrary to the statement by Malcolm Turnbull this week that “we simply haven’t been building enough dwellings” – which shows how little he understands about the situation.
Federal Labor responded with its standard party line that restricting tax benefits for investors will make housing affordable again – despite the assertion by leader Bill Shorten that his policy won’t cause house values to decline (so therefore how will it make housing more affordable?). And that, sadly, is the extent of his understanding of the issue.
There followed lots of finger-pointing, with each level of government blaming another level of government for the perceived problems, and each side of politics scapegoating their opponents.
Industry lobby groups leapt at the opportunity to advance their pet causes. Master Builders Australia agreed, naturally, that a big lift in new home construction would be the solution, but argued that politicians needed to make changes to make it really attractive for developers and builders. The Urban Taskforce declared that developers would be happy to build lots of affordable homes, just so long as government handed them plenty of financial incentives. 
As I’ve often commented, the biggest noise in real estate is always the voice of vested interest.
Even in Perth, where there is vast oversupply and high vacancies right across the metropolitan area, the Urban Development Institute of Australia urged the WA State Government to take steps to increase housing supply. 
To paraphrase Shakespeare, they were all tales told by idiots, full of sound and fury, signifying nothing.
The problem is that none of solutions put forward will make the required difference. They’re all targeting the wrong villains.
Everyone has a theory on who’s to blame for rising prices: some say foreign investors, others claim Australian investors, a few proclaim it’s first-home buyers pumped up by government incentives and still others, including former federal minister Bob Carr, reckon it’s the high level of overseas migration into Australia.
Who’s right? Well, none of them. The real culprits are never mentioned.
The biggest single force in driving house prices comprises the market sector known as next-time buyers –i.e. home-buyers other than first-home buyers. Numerically they’re the biggest chunk of the market and they’re aspirational. They have the financial capacity and ambition to pay top dollar to secure the property they’re obsessing over.
Investors, generally, don’t do that and first-timers can’t afford to.
But there’s an even bigger villain, one the politicians never mention while they’re busy pointing their fingers in various other directions - because the biggest problems are caused by the politicians themselves.
The value of homes in Australia is under-pinned by their replacement cost – i.e. the high cost of creating new house-and-land packages, the biggest chunk of which comprises taxes, fees and charges from all three levels of government.
As long as local, state and federal governments treat the housing industry as a beloved cash cow, housing will remain pricey in this country. Most of the state budgets handed down this year made the problem worse by adding to housing costs. 
You can build as many new houses as you like, but developers can’t sell them for $250,000 if they cost $400,000 to create.
Federal politicians recently conducted an inquiry into the affordability issue, which took a lot of time, cost of lot of money and achieved absolutely nothing. The Federal Government made a show of clamping down on foreigners illegally buying mansions, but that has changed nothing for first-home buyers 
Last year another inquiry was initiated by the House of Representatives economics committee but, according to reports this week, that has lapsed through lack of energy.
So where are we after all that “sound and fury”? Exactly the same place we were before Scott Morrison stepped up to the microphone – nowhere closer to any solutions.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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terryryder-YECXbqmri2

We don’t need more dwellings in Australia

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Melbourne’s north has seen strong take up of space over the last year on the back of growing tenant demand, particularly from food, logistics and packaging businesses, according to Colliers International's latest report.
Properties within the 5,000-10,000 square metre range have seen the largest take-up in the year to date, with more than 54,000 square metres absorbed - nearly doubling since last year.
Vacancy has declined considerably by approximately 45% over the 12 months to August 2016 to be around 236,706 square metres, with much of this vacant space attributed to lease expiries.
While part of this is due to the lack of speculative development and more focus has been on prelease commitments, much of the absorption was from several deals being made in the 5,000 square metre plus range in the first half of 2016, which includes 141 National Boulevard, Campbellfield being leased to food distributor Bio-Living, and 27 Transport Drive in the Somerton Logistics Centre.
In addition, the latter half of 2015 saw quite a few large deals being made for properties above 10,000 square metres, with the most notable being the 40,000 square metre commitment by Murray Goulburn to the Austrak property.
Businesses continue to be drawn to the north’s robust road infrastructure attributes which include the Hume Highway as a corridor for the transport of freight between Sydney and Melbourne, immediate access to major arterials, close proximity to the Melbourne airport, and transport links to the Port of Melbourne.
Activity in the north’s industrial precinct over the next few years will be driven by rising opportunities for growth, through impending infrastructure development strategies and the strength of key industries such as Food and Fibre, and Transport and Logistics.
Significant transport and road infrastructure projects include the widening of the Tullamarine freeway which is currently underway, the new intermodal freight hub in Somerton (Austrak/DP World Australia) and upgrades to roads (including O’Hearns Road, Yan Yean Road and Bolton Street).
These improvements should provide opportunities for business growth and generate demand in all sectors of the industrial property market.
A low cost business environment and attractive rental rates have continued to spur tenant interest - average net face rents for prime grade assets are currently at $78 per square metre, while secondary grade assets lease for $58 per square metre net.
There has also been a notable increase in tenant enquiry from food groups, particularly within the local government area of Hume which has seen a comparatively higher number of leases within this sector than in 2015.
As Australia’s largest producer and exporter of food and fibre, this sector accounts for more than half of Victoria’s total goods exports. The food and fibre industry should continue to strengthen on the back of growing global interest and increased strategic opportunities as one of the state government’s six priority sectors within the Future Industries Fund, which should drive the demand for industrial space and help absorb impending vacancy from automotive manufacturing facility closures.
Investment activity has also continued to ramp up, evident in major deals being made over the year. One such deal was the sale of the 11,717 square metre Campbellfield property on 36-52 National Boulevard by Property Link, located on 36-52 National Boulevard, which sold to a local owner occupier (also a food group) for $9.6 million, in a Colliers International negotiated deal.
While land values have remained steady in the $240-275 per square metre range for Prime Grade assets over the last six months, the demand for land (from a mix of developers and owner occupiers) in close proximity to the Hume Freeway has continued to grow, predominantly in Epping and bordering areas.
Moreover, current land supply has also been tightening around Epping precinct with limited serviced blocks available at MAB’s Alliance Business Park and McMullin’s Northpoint.
The lack of land supply and fewer opportunities for developments should translate to solid growth in land values over the next 12-24 months.
The underlying demand saw average Prime Grade yields compressing by approximately 40 basis points over the last year to be in the 6.5-7.5% range and we believe there is further scope for compression, particularly for well-located properties, which are in limited supply.
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j.ballantyne1990-6AQqhLzZaK

Melbourne's north industrial market continues to improve: Colliers 

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Victoria continues to attract both local and off shore investors due to the strong growth of the local economy, record low interest rates, booming infrastructure investment and growing population, according to Colliers International’s latest report.
Average yields have compressed by 50 basis points over the year to 6.75% across the Melbourne metropolitan area, from the combined effect of strong offshore capital inflows and high demand from onshore investors.
However, super prime assets with long WALES and exceptional tenant covenants are attracting sub-6% yields.
Colliers expect strengthening demand to translate into further yield compression over the next 12 months, given that there is plenty of capital with fewer investment opportunities.
“So far this year, more than $900 million worth of sales have transacted in Colliers negotiated deals alone, half of which was attributed to portfolio transactions including $460 million worth of Melbourne industrial assets from the Goodman portfolio, $68 million from the Charter Hall portfolio and the Alex Fraser portfolio ($44 million). Portfolio transactions have continued to gain favour in the industrial market, given that the majority of buyers comprise of institutions looking to purchase larger assets worth over $100 million,” the report stated.
If booming infrastructure investment and ongoing structural change in Port Melbourne are any indication, the next few years are going to be a defining period for industrial property located on the cusp of all this activity.
Infrastructure assets continue to attract investor appetite, with the Port of Melbourne being particularly attractive, primarily due to its sheer scale and underlying potential for development.
Fisherman’s Bend has seen a number of significant developments which are likely to change the course of the industrial property market and underpin growth over the foreseeable future, particularly for properties within close proximity to the port. This includes the acquisition of the Port of Melbourne on a 50 year lease for $9.7 billion by a pool of four investment funds (Future Fund, QIC, Global Infrastructure Partners and Canadian pension group OMERS), which, while providing greater access to capital should also transform the landscape for freight and logistics through proposed automation and transport links, bolstering productivity while benefitting trade and attracting investor demand.
The state government has also taken significant interest in the Fishermans Bend precinct, with one such measure being the purchase of the GM Holden facility as an aerospace, defence, marine and automotive design precinct for $130 million.
The state government recently released a report on its vision for the Fishermans Bend precinct which outlines major urban renewal particularly in the Lorimer, Montague and Sandridge precincts, a proposed high frequency East-West rail linking Fishermans Bend to the CBD and further links to Melbourne’s transport network through light rail and high frequency bus routes.
"Assets with shorter lease expiries have continued to gain momentum in the market, particularly for properties with a redevelopment potential. Areas such as the Montague and the Sandridge precinct have been seeing strong tenant demand for leases with short WALES varying between two to three years, where much of the properties within this region serve as holding income for investors seeking to redevelop these assets and are awaiting permits," the report stated.
As these residential conversions come to fruition, surrounding areas such as Cook Street, Lorimer and the Fisherman’s Bend Employment precinct should see a significant take up in industrial space, given the flow on effect of tenant demand from the more tightly held mixed use areas.
Average net face rents for Prime Grade assets are currently at $180 square metre and given that there is limited new supply in the pipeline, industrial assets should continue to see growth over the medium to long term, as supply remains limited on the back of increasing residential conversions.
Developers have been hotly pursuing land with a redevelopment upside for purposes of conversion to commercial or residential use. This has resulted in a large take up of land within the city fringe area and as such, the demand for land largely exceeds the in flow of supply, which has led to land values soaring by more than 33% in the last 12 months alone.
The same trend has been seen across the industrial property as a whole, particularly for institutional type investors looking to purchase industrial assets above 5,000 square metres, given that there has been little or no supply coming onto the market.
In this environment, yields compressed 38 basis points over the year to be in 6-7% range, with scope for further compression in the next 12 months, as growing demand continues to outstrip supply.
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Fringes of Melbourne will see growing demand for industrial properties: Colliers

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The Australian Nursing and Midwifery Federation (ANMF) Victorian Branch is to sell its long time Melbourne headquarters.
The property is tipped to generate wide ranging interest from investors, hoteliers, education groups and student accommodation providers.
CBRE has the offering of the two adjoining buildings at 532 and 540 Elizabeth Street, set between Melbourne’s health, education and Victoria Market Precincts.
Funds raised from the sale will help fund the construction of a new multimillion dollar ANMF head office and education facility, which is being developed directly opposite on the western side of Elizabeth Street.
Due to be completed in September 2017, the new 10-level facility will include an auditorium and educational facility to cater to the federation’s fast expanding member base in Victoria.
ANMF’s Secretary Lisa Fitzpatrick said the Victorian branch had expanded from 27,000 members to more than 76,000 in the past 20 years
There is the larger ANMF House building at 540 Elizabeth Street and a double-storey character building at 532 Elizabeth Street, otherwise known as 29 Leicester Street
The properties will be offered individually or in one line.
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Victorian nurses look to sell Melbourne headquarters

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EG Funds Management has exchanged contracts to sell 223 Liverpool Street, Darlinghurst to ST Real Estate Austraila, European based clients of Fidinam Australasia Real Estate.
The property was sold for $33 million, having been purchased by EG in 2014 for $17.45 million denoting an equity IRR of approximately 40 percent.
The asset, with a net lettable area of 4,477sqm, is currently in the process of attaining Development Approval for a staged refurbishment and repositioning of the entire building.
Formerly known as Holdsworth House, the five-level heritage listed building was the seed asset for EG’s Core Plus Fund No. 1 (CPF1).
EG identified the asset’s repositioning potential during the fund raising of CPF1. The eastern city Sydney fringe asset was encumbered with a number of existing leases and unfavourable floor configuration.
“The asset offered an excellent opportunity to add value through a complete refurbishment while providing a robust initial yield at acquisition” says Divisional Director, Daniel Farley.
“Following strong unsolicited interest, EG has capitalised on an extremely strong Sydney office market, with the sales price providing returns consistent with the acquisition’s refurbishment strategy, minus the delivery risk”
CPF1 is a closed-end fund, focused on acquiring assets that can benefit from the active asset management, refurbishment and repositioning capabilities, for which EG is well known.
EG were represented in the sale by Jonathan Vaughan and John Bowie Wilson from Knight Frank, while Craig Stuckey of Fidinam represented the purchaser.
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EG sells Sydney fringe asset for $33 million

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Developer Perri Projects will launch a boutique luxury hotel, restaurant and event space in South Melbourne on the corner of Moray and Dorcas Streets.
Perri Projects purchased a 700sqm site in 2005 and has purchased two adjoining sites since.
The site has been granted a planning permit by the City of Port Phillip Council.
Perri Projects managing director, David Scalzo said they are in early discussions with hospitality groups for partnerships in the restaurant and functions centre. 
"More than a hotel, we envisage this mixed-use development to be a lifestyle destination in South Melbourne including retail, food and beverage, and a rooftop function and events centre,” he said.
"There is a distinct lack of new, luxury hotel offerings in this area. The majority of existing hotel stock around St Kilda Road and South Melbourne is now ageing considerably so we’ve identified a real gap in the market for quality, bespoke hotels for business and high-end leisure travellers.
The hotel, designed by, Plus Architecture, will boast three street frontages.
Plus Architecture Director Ian Briggs said the façade was imagined as a collection of crystalline blocks in which gritty concrete frames are juxtaposed with vapour-like glazing to create a dream-like presence.
The hotel is aimed at the business premium market and features a pool, gym and business centre.
 
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jonathanchancellor-7SQnKwU6yx

Approval given for new boutique South Melbourne hotel

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SPONSORED POST
Signing your business up for a property lease is a lot different than renting a home to live in.
Here’s nine things you should keep in mind when taking out a commercial lease.
1. Is the rent appropriate?
Exactly what space are you renting? Does it include common areas such as hallways, rest rooms, and elevators? How does the landlord measure the space –some measurement practices include the thickness of the walls. Also keep in mind that commercial lease agreements usually provide for an annual percentage-based rent increase.
2. Set cost parameters from the start
Negotiate with the landlord for a cap on the percentage increase to avoid unmanageable costs later on with the rent going up when you least need it. Check to see if there is a use clause. Many lease agreements will incorporate a use clause to define the activity the tenant can engage in on the premises.
3. Who’s responsible for what?
Who will maintain and repair the premises, including the heating and air conditioning systems? Responsibilities for the building and any equipment are often shared between landlord and tenant. The agreement should spell this out clearly.
4. Set your own timeframe
Most landlords prefer long-term lease agreements. If it’s a new business, it might pay to ask the landlord for a short-term lease with an option to renew. This may raise the rent you pay, but it could be a better alternative than agreeing to a lengthy term.
5. Can you make changes to the property?
A lease should address what improvements or modifications can be made to the property, which party will pay for the improvements, and whether the tenant is responsible for returning the unit to its original condition at the end of the tenancy. It should also spell out who will own the improvements when the lease expires.
6. Remember the little things
If the business needs it, make sure that the lease agreement does not prohibit putting up signs that are visible from the street. Agree on who is responsible for rates, taxes, insurance and other outgoings; for example, contents insurance or council and water rates. It’s also important to check if the lease agreement allows subletting. This is important because the lessee is still responsible for paying the rent if the business fails or relocates. An assignment or sublet clause in place allows the business to find someone else to cover the rent.
7. Know your rights
Does the lease have a Right of Assignment clause? If you have to sell the business, a Right of Assignment clause gives you the option of transferring the lease to a new tenant. Is there an option to renew the lease or expand the space you are renting? How would the lease be terminated? Is there a notice requirement? Are there penalties for early termination?
8. Seek financial advice
Before you sign, you should check the deductibility of rent and your tax liabilities with your financial adviser. If the agreement requires the business to purchase leased goods or equipment, it could invalidate your right to claim rent as a tax deduction. A financial adviser is essential here.
Check rent deductibility and tax liabilities with a financial adviser before you sign a lease.
9. Are there additional clauses?
If you are leasing premises in a shopping centre, it’s worth asking whether you have to comply with the centre’s fit out rules (shopping centres can often be more restrictive), whether you are required to contribute financially to the centre’s marketing and promotional activities and whether your business would be affected by any ownership plans to redevelop or expand the centre.
So there you have it: A solid checklist to get started.
For more information, <a href="https://bs.serving-sys.com/BurstingPipe/adServer.bs?cn=tf&amp;c=20&amp;mc=click&amp;pli=18755997&amp;PluID=0&amp;ord=%5Btimestamp%5D" target="_blank">click here</a>.
ABOUT REALCOMMERCIAL.COM.AU: realcommercial.com.au is the leading website in Australia for commercial property, attracting an average of 1.7 million visitors a month (Source: Nielsen Online Market Intelligence, Total Traffic, average calculation May-July 2015, includes app traffic from Omniture Site Catalyst as Nielsen doesn’t report on app). It is owned and operated by realestate.com.au Pty Ltd, a subsidiary of ASX-listed REA Group Limited ACN 068 349 066 (ASX:REA).
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jchancellor-FAypfDUnLy

9 things to remember when taking out a commercial lease 

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GUEST OBSERVER
The almost 4.5 year growth phase in capital city home values have driven prices higher and this week we look at the now significant premium for housing in Sydney and to a lesser degree the premium in Melbourne.
CoreLogic calculates capital city median selling prices on a rolling three month basis. 
As at September 2016, the combined capital city median house price was recorded at $600,000 and the median unit price was $510,000. 
Importantly, because a median is based on sales and transactions that are mostly occurring in Sydney and Melbourne, this figure is heavily influenced by these two cities.
<a href="/images/2016/10/25/Quarterly%20median%20house.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Quarterly%20median%20house.jpg" alt="">
With home values rising at a much stronger rate in Sydney and Melbourne there is increasingly a significant premium for housing across these two cities. 
The median house price in Sydney is recorded at $890,000 and the median unit price is $675,000.  In Melbourne, median price are recorded at $641,500 for houses and $485,100 for units.
<a href="/images/2016/10/25/Sydney%20Vs%20Melbourne%20units.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Sydney%20Vs%20Melbourne%20units.jpg" alt="">
The second chart highlights Sydney median unit prices and Melbourne median house prices over time.  Interestingly, Sydney units have regularly been more expensive than Melbourne houses and this remains the case currently. 
In fact, Sydney median unit prices have consistently been higher than Melbourne median house prices since February 2012.
Looking at median selling prices of houses over the September quarter across the individual capital cities shows a substantial premium in Sydney. 
Across the cities, median prices were recorded at: $890,000 in Sydney, $641,500 in Melbourne, $505,000 in Brisbane, $440,000 in Adelaide, $480,000 in Perth, $349,500 in Hobart, $500,000 in Darwin and $625,000 in Canberra. 
The median house price in Sydney is 39% higher or $248,500 more expensive than median prices in the second most expensive city, Melbourne. 
Although the premium for Sydney housing is rising and wide on an historic basis, the Sydney premium (in percentage) terms was higher than it is currently for all capital cities back in late 2003.
<a href="/images/2016/10/25/Quarterly%20median%20selling%20house.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Quarterly%20median%20selling%20house.jpg" alt="">
Turning to the median selling price of units, we’ve already noted that Sydney median unit prices are higher than median house prices in all other capital cities at $675,000. 
Elsewhere median unit prices are recorded at: $485,100 in Melbourne, $390,000 in Brisbane, $351,500 in Adelaide, $410,000 in Perth, $283,000 in Hobart, $440,000 in Darwin and $421,000 in Canberra. 
Sydney’s median unit price is $189,900 or 39% higher than Melbourne’s. 
As with houses, although the Sydney unit premium is substantial, in percentage terms it has been greater in the past.  
<a href="/images/2016/10/25/Quarterly%20median%20selling%20units.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Quarterly%20median%20selling%20units.jpg" alt="">
Although the gap in housing costs has been greater in the past, in dollar value terms it is substantial.
And is likely to be a challenge in the future. Housing in Sydney and Melbourne has become more expensive than elsewhere in the country due to much stronger job and broad economic conditions.
Despite these factors we anticipate that the substantial cost of housing in Sydney will make it a less desirable location for people to migrate to. 
The latest demographic data shows that a greater number of net overseas migrants are choosing to move to NSW rather than Vic. 
Meanwhile, net interstate migration into Vic is at a record high while the outflow from NSW is historically low but has started to pick-up.
We expect that migration, particularly interstate migration, into Vic (which is a proxy for Melbourne) will continue to rise while over the coming years while it is anticipated to slow into NSW (as a proxy for Sydney).
Housing costs are likely to be one of the key drivers of this change. While both economies are strong and creating jobs we expect that more interstate migrants will be attracted to Melbourne due to its substantially more affordable housing costs, rather than Sydney.
Outside of Sydney and Melbourne, cheaper housing alone is proving not enough to attract people to these cities.
This highlights the importance of a strong economy with decent employment prospects and shows that housing affordability alone is no longer enough of a lure to attract migrants to a region.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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ckusher-ujnxiKuFQs

Analysing the Sydney housing price premium: Cameron Kusher

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The local economic situation in Queensland remains stable with Emerald and Brisbane reporting steady growth, according to Herron Todd White’s (HTW) latest monthly market report.
The property advisory firm says that the volume of industrial properties being sold remains at a stable rate, although some cities, such as Townsville and Gladstone, are reporting an oversupply of industrial properties.
<a href="/images/2016/10/14/QLD%20industrial.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/14/QLD%20industrial.jpg" alt="">
HTW notes there is significant value differences between quality properties with national tenants and comparable properties with local tenants throughout QLD regions, with the exceptions of Cairns, Rockhampton, Gladstone and Toowoomba which are reporting only a small difference.
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Queensland's local industrial markets remain stable: HTW

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The industrial market in NSW for the most part is a balanced market, according to Herron Todd White’s (HTW) latest monthly market report.
However, the property advisory firm says that there are some areas such as Albury, Orange and Newcastle that are reporting an oversupply of industrial properties compared to demands.
<a href="/images/2016/10/14/NSW%20industrial%202.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/14/NSW%20industrial%202.jpg" alt="">
Many of the areas of NSW's industrial market are starting to recover, with Albury, Wagga Wagga and South East NSW reporting that their industrial markets are now at the bottom.
The local economic situation remains unchanged with most cities reporting little change in their situation, except for Tamworth and the Central Coast regions which are experiencing a steady growth in their local economies.
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