<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

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National office vacancy in Australia remained largely flat, says the latest Property Council of Australia Office Market Report but it belies the changes to the economy as the mining investment boom ends and significant new office space comes online.
The rise in vacancy was 10.5 percent from 10.4 percent, but demand was seen increasing for the fourth consecutive period.
“The almost static national rate makes it look like it is all smooth sailing across the lake. This hides what is happening below the surface,” said Property Council chief executive Ken Morrison, pointing to the major differences between the cities and regional areas. 
“The economy is in transition; Sydney and Melbourne are reclaiming their historic claims as the economic engine-rooms of the economy; and in most cities, we are witnessing strong increases in demand. This demand is being sufficiently met by significant additions to office supply.”
He said the demand for offices in Sydney and Melbourne is strong, which is good news for Australia as the mining investment boom ends. 
Sydney CBD and Melbourne CBD showed the lowest vacancy rates with 6.3 per cent and 7.7 per cent respectively, closely followed by Hobart (8.1 per cent). The two top cities are also the best performing markets by net absorption.
“But the story is not even. Office vacancies in Brisbane, Perth, Canberra, Adelaide and Darwin are more than double that of Sydney,” Morrison said. 
The report also shows that Sydney, Brisbane and Adelaide will all have above average increases in new office stock over the next year.
Other highlights include: 
• Vacancy rates falling in 13 of the 17 Non-CBD markets tracked
• Vacancy rates increasing in Adelaide CBD (14.1 per cent up from 13.5 per cent), Perth CBD (19.2 per cent up from 16.6 per cent) and Darwin CBD (20.7 per cent up from 10.9 per cent)
<ul>
<li>An additional 394,243 sqm in office space was added over the last six months – 25 per cent higher than the historic average </li>
</ul>
 “The latest figures from the Property Council of Australia highlight the two-tier nature of Australia’s office markets nationally as a new year swings into action,” commented Simon Hunt, managing director- office leasing at Colliers International.
“In 2016, tenant appetite for Australian office space will continue to diverge between the high demand cities of Sydney and Melbourne and the country’s remaining major cities.”
The non-CBD markets were holding up well too with 13 out of 17 reporting falls in vacancy rates and 11 out of 17 markets reporting lower vacancy rates than the Australia wide non-CBD rate.
Perth saw the first positive net absorption (42,387sqm) after three years of negative demand. This helped to offset the large spike of an additional 113,463 sqm of new office stock that was added to the market over the past six months. 
Sydney continues to have the lowest vacancies and strongest demand of all cities. As well, it has a strong pipeline of new stock with 243,126 sqm expected in 2016. 
The fall in Hobart’s vacancy rate is occurring at the same time as major regulatory changes are taking place. These include the passage of the Tasmanian Planning Scheme and proposed changes to the Building Act amendments. 
Brisbane’s vacancy rate remained steady. The city is expecting an additional 192,281sqm in office space to come online during 2016. Brisbane is facing near record levels of new supply over the next year, which will continue to put pressure on this market. 
Melbourne’s vacancy rate fell to 7.7 per cent – second only to Sydney – off the back of strong demand. With 71,768sqm of new supply to come on board over the next year and none forecast for 2017, this market can be expected to remain tight. 
Adelaide continues to suffer from negative demand with CBD vacancies reaching as high as 20.6 per cent for D grade property. 
Canberra’s vacancy rate fell from 15.3 per cent to 14.9 per cent. While the improvement is welcome, the city continues to have one of the highest vacancy rates in the nation. The prevalence of older buildings throughout the city has seen vacancy rates hit 30 per cent for D grade properties. 
Darwin reported the worst result in the nation with vacancies increasing from 10.9 per cent to 20.7 per cent. This was the result of an economic convergence of increasing supply and lower demand. The city reported the highest supply rate increase in Australia at the same time as it was experiencing the lowest demand growth.
</body></html>

prateek24-ezbwHMbNAk

Modest rise in national office vacancy, but demand soars in Sydney, Melbourne: PCA report

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Non-residential and residential building approvals fell over the last six months in NSW, says the Urban Taskforce citing Australian Bureau of Statistics data.
“In a worrying sign that the property market is slowing down the latest ABS approval numbers continue a fall from June 2015,” said Urban Taskforce CEO Chris Johnson. 
In the high density apartment market, approvals in December 2015 dropped to 3,060 from a high of 3,338 approvals in June 2015 on trend numbers. 
This could be a settling down to more normal production or point to less confidence in the market through a tightening of bank loans, said Johnson.
“While the state’s performance is well above the 10-year average the continual slow down means the government must be careful with any changes that affect the industry. We are concerned that statements about value capture levies along with a less focussed local government sector due to amalgamations could lead to further drops in production,” he said.
“Even at the June high point NSW was not producing sufficient housing for the increased population particularly when many approvals do not proceed to housing production.” 
According to the NSW Department of Infrastructure and Regional Development website, land value capture or uplift involves governments levying a proportion of the increase in the unimproved capital value of private land due to public sector transport infrastructure investments. 
The various forms of value capture range from property taxes, parking levies and voluntary planning agreements.
The non-residential building approvals — measured by value — have also slowed over the last six months with NSW now behind Victoria and Queensland despite these states being smaller. 
Non-residential building approvals in Victoria were $833,198,000 in December 2015 compared to Queensland at $692,603,000 and NSW at $691,569,000.” 
“While the NSW economy is generally in good shape the role of building production needs to be carefully supported to ensure it remains robust,” said Johnson.
He suggested that the Greater Sydney Commission take a more proactive role with approvals of major projects during the transition process to ensure housing supply continues at a strong level.
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NSW building approvals slowing down: Urban Taskforce 

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Canberra’s commercial property sector is expected to attract an increasing level of offshore attention from investors in 2016.
<div>According to Knight Frank’s Associate Director, Institutional Sales, Canberra, Nic Purdue, there are numerous signs that point to a stronger market and more diversified attention on the capital city this year.</div>
<div> </div>
<div>“Recent positive economic signs in Canberra are expected to help underlying market fundamentals," he said.</div>
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<div>"This includes a far more stable vacancy rate, stable incentives and forecast rental growth – all signs that the Canberra commercial market has reached the lowest end of its cycle.” </div>
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<div>Nic said that investors from Asia are looking increasingly towards the Canberra market due to its secure, long-term government tenants. </div>
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<div>“The current wave of Asian capital is looking to diversify away from Australia’s core markets and into higher-yielding regions, such as Canberra.</div>
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<div>“With some volatility in global markets, Canberra is increasingly being considered as a safe haven within the context of the wider Australian market place.</div>
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<div>"Australia remains attractive for offshore investors who are drawn by the low Australian dollar, cost-effective borrowing and government stability and should the global volatility continue there will be a case for the RBA to keep rates on hold, adding to the attractiveness of Canberra as a market."</div>
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<div>“We are already receiving increased interest from Asian countries including Korea, Singapore and Malaysia.</div>
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<div>"In December 2015 Korea’s FG Asset Management purchased the Louisa Lawson Building for approx. $225 million and we anticipate that this significant transaction will lead to more interest from these groups in 2016.” </div>
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<div>Mr Purdue said that Canberra hasn’t yet seen the influx of Chinese investors in the commercial market, although the residential market has seen plenty of interest. </div>
<div> </div>
<div>“Canberra’s commercial sector hasn’t yet seen the levels of demand from Chinese investors that other capital cities have seen, but that could also change.” </div>
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<div>According to Nic, hotel buyers from Asia are seriously considering Canberra at the moment and actively seeking opportunities.</div>
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<div>“In addition to interest in the commercial office sector, we have recently received several enquiries for hotels in Canberra on behalf of Asian hotel groups," he said.</div>
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<div>"We expect this interest to continue.”</div>
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<div>A final factor that may have a positive impact on the flow of Asian investment into Canberra, according to Nic, is the potential upcoming announcement by Singapore Airlines that they may look at initiating direct flights between Canberra and Asia. </div>
<div> </div>
<div>“As reported in the media over the past week, if Singapore Airlines does create a direct flight route between Canberra and Asia, this will continue to build the case as an investment destination for Asian investors,” he concluded.</div>
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jrobinson-rf4aSBido9

Asian investors size up Canberra office market

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The Australian Bureau of Statistics (ABS) released building approvals data for December 2015 which have been analysed here by CoreLogic RP Data research analyst Cameron Kusher.
The results tend to be somewhat volatile on a month-to-month basis, largely due to the more ‘lumpy’ unit approvals. 
Following a -12.4% monthly fall in dwelling approvals in November, approvals rose by 9.2% to 18,868 approvals in December 2015.
<a href="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.47.54%20pm.png" target="_blank">Click here to enlarge</a>
<img src="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.47.54%20pm.png" alt="" width="515" height="163">
The 18,868 dwelling approvals in December 2015 consisted of 9,968 house approvals and 8,899 unit approvals. 
Both house and unit approvals recorded a large jump in December, up 5.7% and 13.5% respectively. 
Year-on-year, house approvals are 3.4% higher while unit approvals are -8.3% lower resulting in a -2.5% fall in total dwelling approvals. 
Despite the year-on-year fall in approvals they remain at close to record high levels although they are -8.7% lower than their recent record high recorded in June 2015.
<a href="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.49.19%20pm.png" target="_blank">Click here to enlarge</a>
<img src="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.49.19%20pm.png" alt="" width="501" height="181">
Looking specifically at the types of units being approved over the 2015 calendar year, 27.0% were townhouses, a record-low 8.7% were low-rise units (less than four storeys) and 64.3% were high-rise units (four storeys or higher). 
The above chart highlights the rising prevalence of high-rise approvals over the past few years, largely at the expense of townhouses. 
Of course this is reflective of the large volume of in-fill development taking place, particularly in inner-city areas. 
From a developer’s perspective the returns are much higher building to high-densities than there are constructing medium density properties such as townhouses. 
More recently the chart shows that there has been a slight easing of high-rise unit approvals however, developers are still overwhelmingly seeking more high-rise approvals than approvals for low-rise or townhouses.
<a href="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.49.29%20pm.png" target="_blank">Click here to enlarge</a>
<img src="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.49.29%20pm.png" alt="" width="455" height="169">
<a href="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.49.41%20pm.png" target="_blank">Click here to enlarge</a>
<a href="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.49.41%20pm.png" target="_blank"><img src="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.49.41%20pm.png" alt="" width="444" height="163"></a>
The above two charts show the six month average number of house approvals across each of the capital cities. 
The charts show that in most cities the number of house approvals have recently started to trend lower. 
In particular this downwards trend is now most prevalent in Perth, Darwin and Canberra. 
Despite the recent downwards trend in approvals, they remain well above average levels in Sydney and Perth, are at about average levels in Melbourne, Adelaide and Hobart and Darwin and are well below average in Brisbane and Canberra.
<a href="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.49.46%20pm.png" target="_blank">Click here to enlarge</a>
<a href="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.49.46%20pm.png" target="_blank"><img src="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.49.46%20pm.png" alt="" width="477" height="175"></a>
<a href="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.49.51%20pm.png" target="_blank">Click here to enlarge</a>
<a href="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.49.51%20pm.png" target="_blank"><img src="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%201.49.51%20pm.png" alt="" width="472" height="176"></a>
 
Unit approvals have also generally started to trend lower over recent months however, the notable exception is Sydney where they are still increasing. 
Despite the recent slowdown of unit approvals they have been at record highs in Sydney, Melbourne and Brisbane and remain at extremely high levels. 
The challenge now will be to see how many of these recent approvals end up constructed. 
With sales volumes slowing, offshore demand reportedly slowing, investor activity reducing, value growth slowing and concerns of an oversupply in certain areas it will be interesting to see how many of these projects go ahead.
We anticipate that despite the month-to-month volatility in the data, building approvals will most likely trend lower through 2016. 
This will be driven in large by the market due to an expectation of slowing value growth and sales volumes. 
Furthermore, many are concerned about oversupply in certain markets and developers may find it harder to achieve their pre-commitment targets, particularly for units. 
The recent slowdown in investment lending will also impact units more than houses with the last Census showing that units are more than twice as likely to be rented as houses are. 
The fact that rental yields have pushed to record lows and rents are unchanged over the year is also likely to act as a further deterrent for buyers of new off-the-plan property.
While the trend in dwelling approvals appears to have peaked, there are still a large number of projects that are either under construction are due to start construction, which implies building activity probably has some way to go before we see a similar easing trend that is visible with approvals.
 
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po-LsXgBTHBmX

Dwelling approvals remain below peak despite December rise

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Skincare brand Origani is the newest entrant on Melbourne’s Swanston Street shopping strip.
The beauty giant has signed a seven-year lease for its first street store in the Melbourne CBD. 
The store at 191 Swanston Street will be spread over 56 square metre at an annual rental of $4,303 per sqm.
CBRE’s Zelman Ainsworth and Samantha Hunt brokered the off-market deal for Erdi Group.
Ainsworth said the deal was evidence of strengthening demand from international retailers looking to acquire street stores in the Melbourne CBD over shopping centre outlets.
“While shopping centres have traditionally been Origani’s preferred target location, on the back of unmatched traffic and retail spend in the Melbourne CBD, the retailer was eager to secure a presence in the sought after hub,” Ainsworth said.
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Origani scoops beauty spot in Melbourne CBD shopping hub 

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A mixed-use development site at Cremorne (Richmond) in Melbourne’s inner eastern suburbs is up for auction on February 19.
It is expected to fetch more than $2 million.
Located at <a href="https://www.commercialrealestate.com.au/property/24-26-cubitt-street-richmond-vic-3121-2012536208" target="_blank">24-26 Cubitt Street</a>, the 365 square metre site will be sold with a planning permit for the development of a five-level building comprising a commercial office space and two apartments.
Cremorne is in the south-western corner of Richmond and adjacent to Melbourne’s premier sporting facilities and parklands, including the Rod Laver Arena, the MCG and the Royal Botanic Gardens, and abuts the Monash Freeway and the Yarra River.
According to marketing agent, Teska Carsons’ Matthew Feld, the property is ideally suited to the permitted development given its location and the success of similar projects within the vicinity.
“This is a well located site so close to every possible amenity in one of Melbourne’s most vibrant inner suburbs and within easy commuting distance to the CBD,” said Feld.
The site is zoned Commercial 2 under the City of Yarra Planning Scheme. The property will be sold with vacant possession.
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Melbourne’s Richmond site with mixed-use permit up for auction

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Invested in residential property, but a little frustrated with a 'steady' 3-4 percent return?
It might be time to consider the time-tested strategy of diversifying your portfolio and invest in commercial property.
As the heat comes out of the housing market, particularly in Sydney and Melbourne, and expectations of continued softness in the January Core Logic RP Data home price indexes, investors could make a beeline for commercial property.
The search for better yields by investors could benefit commercial property and infrastructure, says AMP Capital chief economist Shane Oliver in its latest weekly update.
Reinforcing the view is the outlook that cash and bank deposits are likely to provide poor returns, with term deposit rates running around 2.5% and the central bank expected to cut the cash rate to 1.75%.
Raine &amp; Horne Commercial’s executive chairman Angus Raine noted late last year that, “low cash rates were helping the smart money find its way into commercial real estate”.
A Commonwealth Bank report said late last year that Australian commercial property sales was set to break the $20 billion benchmark for a third year in a row.
Here are a few reasons why it might be more bang for your buck.
First and foremost, the prospect of higher returns.
Capital city rental rates recorded their slowest annual rate of growth (0.3%) in the 12 months to November, latest Corelogic RP data shows. Growth rental yields also fell to 3.5%, the data showed.
For commercial property, 8% to 12% gross rental yields are not uncommon, according to a blog post on www.realestate.com.au.
Commercial property also offers more options such as office space, industrial, retail, hotels, rural and agribusiness, healthcare and retirement living, meaning it can fit in with most investor needs and risk appetites.
Commercial properties also score on tenancy periods, with contracts typically between three to 10 years, translating to a stable income stream and also less risk of defaulting tenants. For residential property, a lease agreement could be as short as six months and if not renewed, it means the search for new tenants again.
Also, commercial tenants usually pay all the outgoings for you, unlike a residential property, where the landlord is liable for paying council and water rates, maintenance etc.
Square metre for square metre, commercial real estate is often cheaper than residential property but because you’re buying more square metres per property, commercial is usually dearer in real terms. 
On the flip side, vacancy rates are generally higher for commercial, sometimes months or years before a retail space or office is taken up by tenants unlike a house or unit, which typically rent out within weeks. 
Economic fluctuations also impact commercial properties more as businesses rise and fall, hurting demand.
As with any investing, buying commercial property calls for thorough research, best summed up by hotspotting.com.au founder Terry Ryder. 
"Research is the foundation of all successful investment strategies. It takes time and if you don’t have the time, you need to be willing to spend money buying good research."
“We’re seeing plenty of activity in industrial and retail markets priced below $5 million, with assets priced between $1 million and $3 million very popular with yield hungry, self-managed super funds,” said Angus Raine, executive chairman, Raine &amp; Horne Commercial said recently.
“Low cash rates are also helping the smart money find its way into commercial real estate, which is producing some good sales results for vendors.”
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Commercial Property 101: Not happy with residential property returns? Try commercial property 

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The American burger franchise Carl's Jr has opened it's first Australian store on the NSW Central Coast.
The controversial burger chain, known for for their raunchy TV ads, has huge expansion plans for Australia, targeting 300 restaurant sites in the next 10 to 15 years.
Carls Jr, which already has food joints in 30 countries is positioned next to McDonald's in the Bateau Bay area.
Carl Jr's created its own publicity stunt - offering a year's supply of free burgers to the first 50 people through the door of their grand opening, with a burger fan lining up since Sunday night for his share.
Carl's Jr are already <a href="https://www.propertyobserver.com.au/https://www.seekcommercial.com.au/business-listing/carls-jr-franchising-australia-global-leaders-in-restaurant-franchising/179823" target="_blank">advertising the opportunity to potential franchises</a> as they look to continue their expansion.
The Bateau Bay store's franchisee Lindsey Brennan owns 18 liquor stores across the region and has a licence for 10 new Carl's Jr restaurants across the central and northern New South Wales coasts.
The Carl's Jr TV ads have caused a stir amongst onlookers, with Paris Hilton and Kate Upton having worn next to nothing on the US advertisements.
One of the most recent clips featured model Charlotte McKinney was banned from the 2015 Superbowl.
They haven't looked to clean up the promotion in Australia either.
The Carl's Jr Australia ad was reported to the Advertising Standards Board after being aired on Channel 10 after the Big Bash League during December and January with local model Gemie Howe.
The advertisement will be reviewed at the next ASB board meeting.
The 300 planned restaurants will take a sizeable chunk of the burger monopoly across Australia.
Australia has been a highly successful franchise step for burger joints, with McDonalds opening their first restaurant in Yangoona in 1971.
They now have 900 stores across Australia.
Hungry Jacks have 390 and the supposed healthier burger choice Grill'd has 122 locations, however founder Simon Moore targeted another 200 across Australia in 2014.
Among new entrants to the market are​ Mary's, Chur Burger Express, Burger Project, Burger Edge, Burger Shed, Ribs &amp; Burgers, Burger Bro? and Melbourne's Brother Burgers. 
Director of retail listing at Frank Knight Alex Alamsyah recently told Fairfax Media it is unlikely to see Carl's on pricey prime streets in Sydney's CBD.
"Global burger chains like Carl's Jr, and Johnny Rockets from America and MOS burger from Japan are looking at prime streets in Sydney's CBD, but appear reluctant to make a move, as rental in prime George Street could hit $5000 per sqm per annum."
Carolyn Cummins of the Sydney Morning Herald noted that McDonalds is paying roughly $1.25 million a year for their 250 sqm spot in central Sydney and Hungry Jacks's is paying $1.65 million a year for the whole building at 640 George Street. 
Franchisee Lindsey will hope Carl's Jr doesn't follow in the footsteps of Urban Burger. Two of their three outlets were sold off in Melbourne's Balaclava and Middle Park in 2014. 
Ned Lyerly, Carl's Jr president of international doesn't have that concern.
"We've done extensive research ourselves," said Lyerly.
"It's a $16 billion market today and will continue to grow, so I think the market itself is large enough to sustain that sort of operation"
"We compete favourably with all [quick service restaurants]... and believe with the right partners, that those numbers are meetable."
Chief executive Andy Puzder told The Australian Financial Review in 2013 that their success in New Zealand energised the interest in Australia and they want to take advantage of that.
They already have eight shops in New Zealand and plan to open another 50.
 
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American burger joint Carl's Jr opens on NSW Central Coast

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A 19th century building in Melbourne’s Surry Hills has two new corporate tenants.
The corner building at 613 Canterbury Road, Surrey Hills (above) will house Melbourne start-up and financial services provider Selfwealth, and 51 Pay.
Selfwealth will occupy 330 square metres on level 1, while 51 Pay will move into level 2, also 330 sqm. 
Both have rented the spaces at $250 per sqm with $50 per sqm on outgoings. Car spaces are leased at $120 per space per month.
Fitzroys agents Martin Huang and Michael Ryan negotiated the deals in the three-level building.
The building was constructed in 1888 as the Surrey Family Hotel, “Surrey Lodge”, and was closed by a poll in 1920. It was renovated in 1939 and made into shops and a guest house, which was followed by another makeover in the 1990s.
 
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New tenants for historic building in Melbourne’s Surrey Hills

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A milk bar with a three-bedroom house at the rear in Melbourne’s Springvale sold recently for $540,000.
According to selling agent Leyton Real Estate, the milk bar on <a href="https://www.realcommercial.com.au/property-retail-vic-springvale-501789442" target="_blank">68 View Road</a> was the perfect way to enter the Springdale commercial property market.
<img src="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%203.30.48%20PM.png" alt="">
The corner property is in an area classified Business Zone 1.
It last sold in mid-2014 at $403,888 and in 1988 at $250,000.
<img src="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%203.30.43%20PM.png" alt="">
The rent is $16,500 including GST with an annual increase of 4 percent per annum.
The land area is 210 square metre with a floor area of 70 sqm.
The property is on a three-year lease which started in 2014 and has options for renewals.
<img src="/images/2016/02/03/Screen%20Shot%202016-02-03%20at%203.30.54%20PM.png" alt="">
The dwelling at the rear comprises a kitchenette, separate bathroom and secured car space with rear entry.
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