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

Joel Robinson

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

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

Lowe Living unveils Middle Park apartment development

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

DVB Projects to launch second Broadbeach apartment tower as demolition commences

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

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

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

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

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

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

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

<html><body>
<div>The ABS Consumer Price Index figures confirmed that rental growth nationally has continued to be slow - and slowing - of late, as should generally be expected at this stage in the construction cycle. </div>
<div> </div>
<div>It's important to recognise, though, that the property market is cyclical. Always has been the case, and always must be! </div>
<div> </div>
<div><a href="/images/2016/08/02/8.3%20PROPERTY%20CONSTRUCTION%20CYCLE.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2016/08/02/8.3%20PROPERTY%20CONSTRUCTION%20CYCLE.jpg" alt=""></div>
<div> </div>
<div>With annual rental growth declining to +0.7 percent nationally, this was the slowest result in nominal terms since 1994. </div>
<div> </div>
<div>One of the outcomes we can expect to see in an era of low inflation and low interest rates is that things will actually decrease in value from time to time!</div>
<div> </div>
<div>Something that was of course far less likely in say the early 1980s when inflation was blazing along at 10 to 12 percent and interest rates were much, much higher (the typical home loan rate back then was an eye-watering 12 to 14 percent - yowsers). </div>
<a href="/images/2016/08/02/A1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/02/A1.jpg" alt="">
 The plus side for property investors in this era of lower inflation is that mortgage debt has never been so cheap, with ING releasing a record low variable rate product at just 3.79 percent last week.  
<div>City by city</div>
<div> </div>
<div>The soft annual result was driven largely by sharp declines in the resources capitals. In Perth, annual rental growth declined by -5.2 percent over the year to June. </div>
<a href="/images/2016/08/02/A2.jpg" target="_blank">Click to enlarge</a>
<div class="separator"><img src="/images/2016/08/02/A2.jpg" alt=""></div>
<div class="separator"> </div>
<div>And in Darwin, annual rental growth declined to -6.4 percent. Of the smaller capital cities, Hobart and Canberra have both been somewhat soft rental markets in recent years, but both seem to have turned a bit of a corner, with rental growth in Hobart now picking up in response to tight vacancy rates. </div>
<div> </div>
<div><a href="/images/2016/08/02/A4.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2016/08/02/A4.jpg" alt=""></div>
 Reality check 
<div>Slow rental growth seems to cause a good deal of excitement and sometimes hyperbole in reporting, but it is worth stressing that cyclical rental markets are an integral part of the property market and construction cycles. </div>
<div> </div>
<div>Moreover, although there are many ways to present data to show it in its most unfavourable light (such as cherry picking start dates, dodgy y-axis selection, adjustments for "inflation", or simply focusing on decreasing annual growth rates) over the long term generally rents do increase in areas where there is the strongest demand for housing.</div>
<div> </div>
<div>In fact, despite what you'd think from most articles on the subject, rents are actually at all-time highs in Sydney, Melbourne, Brisbane, Adelaide, and Hobart (even if you must adjust for inflation in the case of the two largest cities). </div>
<div> </div>
<div>Historically nominal rents have rarely declined since inflation was was generally stronger, but this may change in future cycles. Plotted below are the rental CPI numbers indexed back to 1972. </div>
<div> </div>
<div class="separator"><a href="/images/2016/08/02/A3.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/08/02/A3.jpg" alt=""></div>
 
<div>Naturally enough city-wide figures mask diverging underlying trends. After taking a bit of a look around Sydney last week - see <a href="https://petewargent.blogspot.com.au/2016/07/traffic-traps-and-infrastructure-gaps" target="_blank">here</a> - I'm fairly sure that off-the-plan unit rents are struggling in the Parramatta LGA, for example. </div>
<div> </div>
<div>On the other hand, if you excitedly confronted renters in Manly with a 'good news story' about weak rents you'd likely be met with a hollow laugh.</div>
<div> </div>
<div>Another point worth acknowledging is that due to the compounding effect, small increases in rent in the short term tend to stack up to become very large increases over time. </div>
<a href="/images/2016/08/02/a5.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/02/a5.jpg" alt="">
 
<div>While I've personally been a fan of the idea of "rent-vesting" - renting and investing in multiple properties - I've also often furrowed a brow when media articles suggest that young folk should just forget buying a home and rent instead. This might have worked if reporters were good at timing market cycles and people were good at saving, but generally speaking they haven't been, and they aren't. </div>
<div> </div>
<div>Ultimately home ownership is an effective means of forced saving, and should form an important part of a retirement plan. </div>
<div>
 The wrap
</div>
<div> </div>
<div>Broadly as expected, rental growth remains sluggish. Looking at the pipeline of properties under construction this seems dynamic appears likely to continue for the next couple of years at the capital city level. </div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
</div>
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pwargent-M4siyDbqQY

Rental market cyclically sluggish: Pete Wargent

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A securely leased apartment block at Frankston in Melbourne's popular south-eastern bayside suburb has price expectation in the high $1 millions.
Available through Savills Australia, the <a href="https://www.realcommercial.com.au/property-retail-vic-frankston-502049122" target="_blank">Park Street property</a> sits directly opposite Beauty Park and is a short walk to shops, schools and public transport.
It comprises a two level residential building, with eight one bedroom units in good condition and undercover parking on a 788 sqm site.
Savills' agents Julian Heatherich and James Lockwood say that the property is fully leased, with the exception of one unit which has been refurbished.
It has a potential, fully leased, income of $80,920.
Julian said the property would suit investors and developers with multiple options to fully refurbish, value-add or redevelop.
"The property will appeal to both investors and developers looking to value-add or redevelop subject to council approval," he said. 
"It is currently fully let, with the exception of one unit due to refurbishment, with an excellent leasing history and is situated in a fantastic location within walking distance of all essential amenities."
James highlighted the properties key investment attributes.
<ul>
<li>The location in a bayside precinct within walking distance of the beach, transport and shops;</li>
<li>The secure lease profile;</li>
<li>The solid building in very good condition; </li>
<li>The generous 788 square metre site;</li>
<li>The exceptional add-value potential; and,</li>
<li>The potential for redevelopment (STCA).</li>
</ul>
"This is a great opportunity for an investor and/or developer with the option of either maintaining an investment with a proven income stream, or a value-add redevelopment with the advantage of ongoing income in the planning stages," James said.
"Properties of this calibre and versatility in bayside locations are highly sought after by tenants and investors alike." 
The property will be sold by Expressions of Interest closing, Tuesday, August 23 at 12pm.
 
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j.ballantyne1990-6AQqhLzZaK

Bayside Frankston apartment block close to the beach for sale

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GUEST OBSERVER
Pop-up shops may have started as a way to derive temporary rent from opportunistic tenants. But today the concept is a permanent fixture in many retail management strategies.
Demand for pop-up spaces from retailers is strong, given the lower risk and minimal capital required compared with a standard lease. 
For new or incubator retailers, the appeal is obvious: minimising costs is important for any business starting out.
Established retailers are increasingly using pop-up stores to test new concepts and experiment with new approaches.
But what about the benefits to landlords?
Pop-ups have always been around as temporary income generators for vacant tenancies. The rationale was that income, albeit short term, and activation is better than a hoarding that screams unwanted space.
This strategy was predicated by the ultimate objective of securing a long term tenant.
However, given demand for these spaces, select centres can actually dedicate a high value space to a pop-up or revolving retail concept instead of looking for a permanent tenant.
It’s a valid strategy if all the pieces fit. When executed well, pop-ups can drive a sense of urgency in purchasing behaviour and inject life into the centre. 
Pop-up retailers that build brand buzz take care of the marketing leg work and can amplify the centre’s reach. Short term sales can be more productive and monthly rentals above market, even with some downtime.
Of course there are challenges, including high labour intensity to curate, downtime risk and the valuation impact of not having a permanent lease in place.
The key to success is in the execution. First, the tenancy must be appealing. A pop-up is no solution for a plagued tenancy.
It should use flexible, movable fixtures that can be stored, with clever signage solutions that can be changed cost effectively. A flexible lighting solution is essential.
Landlords could consider partnering with someone who can curate the space in line with guiding principles. Urban market operators often have ties to incubator retailers.
A branding concept could be considered for the space, with engaging marketing helping to fill the space during downtime, giving people a reason to use it.
It’s also important to see the commitment through. If a landlord commits to a pop-up or revolving retail concept for a tenancy, they must frequently swap the offer. If a particular retailer is performing well, convert them to a permanent deal elsewhere in the centre, as was the case with Doughnut Time at Central Park Mall in Sydney.
Doughnut Time launched to the Sydney market via a 15sqm pop up at Central Park and, having successfully tested the market and delivered very strong sales, has now been converted to a high value 400 sqm permanent tenancy.
The new Doughnut Time tenancy will also showcase Alfredo’s, another new brand to the Sydney market. Alfredo’s is a hip pizza concept out of Brisbane by Doughnut Time founder Damien Griffiths. 
The new tenancy, incorporating the two strong concepts, will be open by October 2016. It’s a prime example of the flow-on benefits of a well-executed pop-up retail strategy.
Pop-ups can add real value to a retail centre and provide for a better customer experience. If you can accept or mitigate the challenges, then the concept of a permanent revolving retail tenancy can be an exciting and profitable one. 
Felicity Armstrong is retail asset manager, Frasers Property Australia and can be contacted <a href="https://www.frasersproperty.com.au" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Pop-up and revolving retail: here to stay

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GUEST OBSERVER
The Deloitte Access Economics “Investment Monitor” provides a detailed snapshot of Australia’s investment project pipeline. The database contains details on 1,073 projects valued at $20mn or more, as at June 2016. Here we provide an update of the key results.
Note, the full value of a project is included in the investment pipeline until the project is either completed or deleted. This differs from official estimates of the existing “work pipeline”, which is the value of work yet to be done on a project currently under construction.
The Investment Monitor estimates the total project pipeline to be $822bn at present. That is a $42bn increase on March, reversing declines over the second half of 2015, to be $2bn higher than a year ago.
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.24.38%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.24.38%20PM.png" alt="">
Significantly, the value of definite projects (those either under construction or committed) rose by $49bn to $431bn, to be $11bn above a year ago but $37bn below the peak of three years earlier.
Potential projects (either under consideration or possible) are valued at $391bn, some $10bn lower than a year ago.
As we have highlighted previously, the project flow is changing course on a stream of new public transport initiatives. That was the clear theme in the latest update.
In June, $39bn of the $49bn increase in total definite projects was explained by public transport initiatives. Following the round of annual state budgets, there are now 29 public transport projects at the committed stage, with a combined value of $44bn, up from 19 with a value of $5bn in March. The transport &amp; storage investment pipeline in total is $231bn, dominated by the public sector, $190bn.
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.26.09%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.26.09%20PM.png" alt="">
The oil and gas sector accounted for the remaining $10bn increase in definite projects in June, most of which was a $7.6bn cost blow-out on the Inpex Ichthys gas field project to $45bn. Phase 2 of the Greater Western Flank project in the Pilbra WA, valued at $2bn, entered the database in June, at the committed stage, with a 2016 H2 start date.
The mining project pipeline, totalling $382bn, of which $202nd is at the definite stage, will thin considerably when the 5 remaining mega gas projects, with a combined value of $172bn, are completed over 2016 and 2017, with potential slippage into 2018.
The non-mining investment pipeline (excluding transport and ex the $44bn NBN), is $165bn, unchanged over the past two years. Of that, $80bn are definite projects, up $2.4bn on mid-2015. Notably, the investment pipeline of accommodation projects, with the low AUD boosting tourism, is valued at $23bn and while that is unchanged on a year ago there has been some transition to the definite stage, up $3bn over the year to be $5.6bn.
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.27.11%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.27.11%20PM.png" alt="">
Mining projects
The mining sector project pipeline is valued at $382bn currently, a $22bn partial rebound on March but still $22bn lower than a year earlier and well below the $478bn peak at end 2012. (Note, mining-related projects can be included in other sectors, e.g. transport &amp; storage.)
The 5 mega gas projects under construction are together worth $172bn. By LNG projects: Gorgon, $61bn, which moved to the start-up phase in the first half of 2016, is to be fully completed by late 2016; Origin’s Australia Pacific LNG $25bn project, Qld, second production train is expected to start production in Q4 2016; Wheatstone, $29bn LNG project in the Pilbara WA, start- up has been delayed to mid-2017; Prelude, $12bn floating LNG platform, Kimberley WA, 2017 start-up potentially delayed to 2018; and Ichthys $45bn project, NT, second half of 2017.
As to oil and gas projects currently under construction, while the combined full project value is $179bn, the pipeline of work outstanding is $35bn, as estimated by the ABS (for March).
Excluding the 5 mega gas projects, the mining project pipeline is: $210bn in total, of which $30bn is definite, $94bn is under consideration and $86bn is possible. The commodity price slump over recent years raises doubts as to how many of these potential projects will proceed near-term.
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.28.19%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.28.19%20PM.png" alt="">
Transport &amp; storage, public projects
Transport projects in the public sector was a key mover in the June quarter, following the recent round of annual state budgets. Notably, the state government’s have found the capacity to lift public investment, a much needed development.
Transport &amp; storage projects in total are valued at $231bn in June, dominated by the public sector, at $190bn. Looking back over recent years, the public transport investment pipeline initially rebounded in 2013; moved higher in 2014; marked time in 2015; and jumped in June 2016, up $24bn on three months ago. By stage, the public transport pipeline is: $51bn under construction (unchanged from 3 months ago); $44bn committed (+$39bn); $62bn under consideration (–$2bn); and $33bn possible (–$12.5bn).
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.29.57%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.29.57%20PM.png" alt="">
Relative to a year ago, the definite projects pipeline is up $44bn, with gains by state of: NSW, +$17bn to $51bn; Victoria, +$15bn to $21bn; Qld, +$7bn to $13bn; WA, +$2bn to $6bn; and SA, +$2.5bn to $2.7bn. Of note, advancing to the definite stage were: in NSW: Sydney Metro stage 2, $12bn; Pacific Highway upgrade Woolgoolga to Ballina, $4.4bn; in Victoria: CityLink upgrade, $1.3bn; Melbourne Metro, $11bn; Dandenong Rail Corridor, $1.6bn; in Qld: new generation rollingstock &amp; Wulkuraka maintenance centre, $4.4bn; Toowoomba second range crossing, $1.6bn; in WA: Forrestfield Airport Rail Link, $2bn; NorthLink WA, $1.1bn; and in SA: five road projects, with a combined value of $2.5bn.
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.31.03%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.31.03%20PM.png" alt="">
Public transport projects under consideration are: in NSW, $23bn, including a second tunnel under Sydney harbour, $10.4bn + $4.5bn; Western Sydney light rail, $2.9bn; and Western Sydney airport, $2.5bn; in Victoria, $13bn, including $5.5bn North-Esat (missing) link; and $5.5bn, Western Distributor; in Qld, $9bn, incl’ Brisbane underground train/bus terminal, $5bn; in WA, $5bn, including Perth Freight Link, $1.9bn and Perth light rail, $1.9bn; and there is also the $10bn Melbourne to Brisbane inland rail link.
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.31.10%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.31.10%20PM.png" alt="">
 Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.westpac.com.au" target="_blank">here</a>. 
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Public transport initiatives lift Australia's investment project pipeline

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Frasers Property Australia (formerly Australand) has formally opened its eco-friendly industrial building at Yatala Central, located between Brisbane and the Gold Coast, with glass bottle-making giant Owens-Illinois (O-I)  being the first tenant to move in.
The facility has been rated 6 Star Green Star by the Green Building Council of Australia, making it Queensland’s first industrial building to be rated such, said a media release.
The 39 hectare Yatala Central estate is located on the corner of Pearson and Peachey Roads in Yatala. 
Sustainability features of the new building includeLED lighting throughout, solar PV system to generate renewable energy on site, 100% water recycling, less waste generation and fibre cement warehouse slabs among others.
O-I has leased a 6.75 hectare site comprising 30,000 sqm warehouse and 400 sqm office space over one level at Yatala Central. It will supply recyclable glass containers to Australian food and beverage companies. It also has the option to expand into the warehouse next to the site and add an additional 5,000 sq m.
O-I Australia general manager Jonathan Marshall said, “Opening this new six-star facility is a further commitment from our business to sustainable operations in Australia. We were pleased to partner with Frasers Property who facilitated the project to achieve top rating for the facility.”
O-I’s Yatala facility will help it service the Australian east coast and the company expects to move up to four million bottles through the facility daily. 
Troy Whalan, general manager New Business, Queensland for Frasers Property Australia, said, “Yatala Central provided the perfect platform to reduce our carbon footprint and launch the first 6 Star Green Star industrial facility in Queensland.
Yatala Central is connected by one of Queensland’s major arterials – the M1 motorway.
“Yatala is one of the fastest growing industrial precincts in Australia and has attracted several well-known brands including Carlton and United Breweries, ALDI, Woolworths, Caterpillar, Visy and VIP Pet Foods. The Yatala market is experiencing increased pre-lease enquiry. We expect to announce several new tenants within the next few months,” said Whalan.
Frasers Property has developed over 17 hectares in Yatala Central and is awaiting council approval for the remaining 22 hectares which will be released to the market mid 2017.
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prateek24-ezbwHMbNAk

Queensland’s first 6 Star Green Star industrial building opens for business in Yatala

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A Shell service station in Adelaide's Edwardstown has exchanged hands in a $5.75 million off-market deal.
The Edwardstown Shells/Coles Express at 1112 South Road was sold with a new 10-year lease with three five-year options to Viva Energy Australia.
The service station sits on a 2,430 sqm site and is located in Adelaide’s main north-south transit corridor.
CBRE’s Will Brown and Ben Heritage brokered the sale on behalf of developer Emmett Property via a private treaty.
A yield of 5.7 percent underscored the property’s strong tenancy profile, said Brown.
“This sale highlights the strong demand currently in the market for single-tenant leased investments,” he said.
The property offers a commencing net income of $328,000 per annum.
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jonathanchancellor-7SQnKwU6yx

Shell service station in Adelaide fetches $5.75 million

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A vacant office building with development potential in inner city Melbourne will go under the hammer with price expectations of $5-$6 million on August 12.
Located at 168 Peel Street, Windsor, the two-level, 1,387 sqm property is expected to spark much interest from owner-occupiers and developers.
The listing agents are Colliers International’s Peter Bremner, Jeremy Gruzewski and Louise Dana, along with CBRE’s Josh Rutman, Tom Tuxworth and David Minty.
“It features an attractive red brick façade, high ceilings, great natural light from dual street frontages and the benefit of being positioned within one of Melbourne’s most thriving inner city suburban hubs," said Gruzewski.
The property was offered with two feasibility schemes by Plus Architecture, each based upon the potential for a nine-storey development in line with advice from town planners Hansen Partnership.
The first scheme has been prepared on the basis of delivering 17 large-scale apartments whilst the second scheme yields 61 two-bedroom apartments.
The property is close to the CBD and public transport.
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Vacant office building in Melbourne's Windsor set for auction

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Builder Pellicano has sold a 21,275 square metre vacant landholding in Melbourne’s Ravenhall to capitalise on the demand from owner-occupiers looking to gain a foothold in growth areas.
The sale price was not disclosed.
The 100 Riding Boundary Road site is located in Orbis Business Park, one of west Melbourne’s industrial/commercial precincts. 
Orbis Business Park is a 70 hectare master-planned business community, with freeway exposure and facilities, including childcare and two cafes. 
Todd Grima and Harry Kalaitzis of CBRE negotiated the sale to a local owner occupier who plans to develop a purpose-built 6,000 sqm office, warehouse and cold storage facility at the site.
“This new facility will take up approximately half of the site, with further plans to develop 12 small industrial office warehouses on the remaining land which will soon be offered to the market for lease,” said Grima.
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Pellicano sells 21,000 sqm industrial site in Melbourne's Ravenhall 

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An office/warehouse in Queensland’s Logan City is up for sale through Raine &amp; Horne for an expected price tag of $635,000.
The <a href="https://www.rhcommercial.com.au/properties/12-126-compton-road-woodridge-4114-queensland" target="_blank">12/126 Compton Road, Woodridge 4114</a> property comprises a building area of 390 sqm with the warehouse on 158 sqm and an 84sqm ground floor office. There is also an 88 sqm approved load bearing mezzanine storage area.
The unit has its own amenities and kitchenette. 
The property is close to M1 motorway, Logan and Kingston Roads.
The listing agents are Raine &amp; Horne’s Andrew Honeybone and Brent Robson.
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Warehouse on sale in Queensland's Logan City via Raine & Horne

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Armstrong World Industries is moving into a new industrial estate in western Sydney’s Greystanes. 
The vinyl-flooring products maker recently signed a new lease for Unit 4, 1 Basalt Road in the new Quarry development for 3,778 sqm space at a rental rate of $120 per sqm. The new building is nearly double the size of its previous location, according to Knight Frank’s Ryan Carey, who brokered the deal.
The recently completed Quarry at Greystanes is managed by DEXUS Property Group.
The Quarry at Greystanes is only 15-20 minutes from Armstrong’s previous address, meaning minimal disruption to staff.
“Armstrong’s move is part of a growing trend, as we’re seeing more and more companies moving out older buildings in the inner or central west in search of newer, more efficient premises,” Carey said.
Armstrong will join a number of firms at Quarry at Greystanes such as Toshiba, Reece, Roche, Blackwoods, Yusen, UPS and Makita. 
Quarry has direct access to the M4 and M7 motorways, and apart from its modern facilities, features rain water harvesting/recycling and solar hot water.
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