<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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A ground floor office showroom in Sydney’s Rosebery has sold at $395,000.
<a href="https://www.realcommercial.com.au/property-offices-nsw-rosebery-501768298" target="_blank">Suite 102, 30-40 Harcourt Parade</a> has a floor area of 90 square metre.
Housed in a prominent commercial building, it has direct street access to Mentmore Avenue. One of the features is an open plan with high ceilings and plenty of natural light.
The property is leased to BCA on a two-year lease till 2016 with the option to extend for one year.
It earns a gross income of nearly $33,840 per annum. 
The deal was through James Reeves of LJ Hooker Commercial.
The property previously traded for $320,000 in 2014.
There were nine sales in the block last year, the most expensive was sold in January for $610,000. 
 
 
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prateek24-ezbwHMbNAk

Office showroom in Sydney's Rosebery sells for a shade under $400,000

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With 4.96 million square metres of total stock, Sydney CBD is the largest office market in Australia, according to Savills’ latest office research.
It is also the most sought after; a fact highlighted by strong prime property rents and yields.
Savills recorded approximately $5.66 billion of office transactions, in the 12 months to December 2015, in the Sydney CBD.
This is up 19 percent from $4.78 billion in the previous 12 months, and up on the five year average of $3.25 billion.
During the same period 29 properties were sold, down on the previous 12 months (47), and down on the five year average of 31.
Sydney experienced its strongest year of office investment in over a decade in 2015.
Among the prominent ones was the sale of 60 Margaret Street (50%) to an offshore equity buyer for $279.5 million, reflecting a circa 6.5% passing yield.
The building comprises a 38-level hexagonal office block including three levels of car parking, three floors of retail space known as the Metcentre, 30 floors of office space and two plant levels. It has a total net lettable area 47,047 sqm.
In July 2015, Investa Property Trust concluded the sale of nine assests to China Investments Corporation (CIC).
The portfolio generally comprised Premium or A Grade office buildings.
Six of the assets are located in the Sydney CBD.
At a reported $2.455 billion ($1.825 billion in the Sydney CBD), the sale represents an approximate 25% increase on the understood December 2014 book values and a reported portfolio yield of 5%.
This arguably reset the benchmark for market yields and IRRs for good quality CBD assets by 25 to 50 basis points tighter over the quarter.
<a href="/images/2016/02/03/Screen20Shot202016-02-0320at2012.12.1520pm.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/03/Screen20Shot202016-02-0320at2012.12.1520pm.png" alt="">
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Sydney CBD office transactions up 19 percent on year: Savills

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The prime Barangaroo harburside location of the current dining sensation, Noma Australia pop-up has already been leased to award-winning restaurateur, Brent Savage, the Sydney Morning Herald Good Food Guide 2015 Chef of the Year, and the sommelier and restaurateur Nick Hildebrandt.
They have signed a lease for the space for a yet-to-be-named seafood restaurant that will open in September at the base of the white, cloud-shaped Anadara building in the Lend Lease built precinct.
The building was designed by FJMT’s Richard Francis-Jones.
‘‘We’ve long toyed with the idea of a seafood-focused restaurant,’’ Savage told The Australian Financial Review.
Barangaroo is credited as set to have the biggest collection of food and beverage retailers in Australia, according Lendlease.
There will be a three storey restaurant headed by celebrity chef Matt Moran whispered to have the working title, Mash.
Gary Horwitz, the head of retail development and asset management for Lendlease, said Sydney-siders are very familiar with their restaurants, Bentley, Monopole and Yellow.
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jchancellor-FAypfDUnLy

Brent Savage and Nick Hildebrandt to take on Noma, Barangaroo space

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Sydney and Melbourne continue to lead the office market recovery in Australia, according to latest figures from JLL Research. 
Statistics on national office markets for the fourth quarter of 2015 showed positive net absorption of 26,700 sqm over the quarter across CBD office markets and 296,900 sqm over the past 12 months. 
The net absorption for 2015 was nearly 100,000 sqm higher than the 20 year average for CBD office markets (197,000 sqm).
“Activity in the office sector is intrinsically linked to the health of the labour market. While the rate of hiring varied by state and industry sector, overall headcount growth was firm in 2015,” said JLL’s head of Strategic Research, Australia, Andrew Ballantyne.
“Employment growth was strongest in NSW and VIC and this was reflected in above trend net absorption results for the Sydney and Melbourne CBDs in 2015.”
Brisbane CBD, however, surprised on the upside with a sharp reduction in sub-lease availability over 2015, he added.
<a href="/images/2016/02/02/Screen%20Shot%202016-02-02%20at%203.31.02%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/02/Screen%20Shot%202016-02-02%20at%203.31.02%20PM.png" alt="">
 
The availability of backfill space from relocation to new development stock, however, resulted in the national CBD office market vacancy rate rising to 12.6% from 12% in the previous quarter. 
The Sydney CBD recorded positive net absorption of 24,400 sqm in 4Q15 and 144,800 sqm over the past 12 months. However, vacancy rate rose marginally by 0.1 percentage point to 7.8% in 4Q15 from the previous quarter.
“The recovery in the Sydney CBD office market continues to be led by the technology sector. Expedia and Dropbox committed to new space and expanded their occupational footprint in the Sydney CBD in Q4,” JLL’s head of Office Leasing, Australia, Tim O’Connor said.
He said the trend of new entrants into Sydney would remain a relevant theme in 2016 and the announcement of new infrastructure projects by the NSW government was a positive for the medium-term economic outlook.
“As the demand recovery across Sydney’s office markets crystallises, the number of genuine options for tenants has diminished and competition for space has translated into positive effective rental growth.”
<a href="/images/2016/02/02/Screen%20Shot%202016-02-02%20at%203.31.07%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/02/Screen%20Shot%202016-02-02%20at%203.31.07%20PM.png" alt="">
Prime gross effective rents in the Sydney CBD increased by 3.9% in Q4 and by 9.5% over 2015. Rental growth was not limited to the CBD with the Sydney Fringe (+12.2%), North Sydney (+6.6%) and Parramatta (+6.6%) all recording above trend effective rental growth in 2015.
The Melbourne CBD recorded 3,700 sqm of positive net absorption in 4Q15 and 128,500 sqm over the past 12 months. As a result, the vacancy rate compressed from 10.1% in Q3 to 10% at the end of 2015. 
“The relatively flat net absorption result masked the divergence in prime and secondary vacancy rates. The availability of good quality space has allowed companies to upgrade the quality of their premises and the prime grade vacancy rate moved below 10%,” O’Connor said.
While office market net absorption surprised on the upside in Sydney and Melbourne over the past 12 months, only four of the six monitored CBD office markets recorded positive net absorption over 2015. 
The Brisbane CBD was one of the markets to perform above expectations and recorded four successive quarters of positive net absorption in 2015. Net absorption in Q4 came in at 11,300 sqm and was 26,600 sqm over 2015. 
“While leasing volumes remain thin in Brisbane, a reduction in sub-lease availability from 3.28% of total stock in 2014 to 1.44% in 2015 provides tangible evidence that companies are willing to retain excess space in anticipation of modest headcount growth in the short-term,” Ballantyne said.
The Perth CBD recorded positive net absorption of 600 sqm in 4Q15. However, net absorption was negative 19,100 sqm over 2015.
“It is too early to confidently call the trough in the Perth CBD office leasing market. However, the rate of contraction has slowed significantly over 2015 and the physical market will show further signs of stabilisation in 2016,” Ballantyne said.
Canberra recorded positive net absorption of 18,000 sqm over 2015. As a result, Canberra’s vacancy rate has trended down over 2015 and finished the year at 14.1%.
In 4Q15, the Adelaide CBD recorded net absorption of -11,300 sqm and vacancy increased to 16.7% over the quarter. The vacancy rate in Adelaide is now at the highest level since 1999.
“The easing of leasing incentives we recorded in Sydney over the latter part of 2015 will become a more pronounced theme in 2016. However, vacancy pressures in Perth, Adelaide and Brisbane will require owners to commit capital expenditure to reposition assets to ensure that they remain relevant in competitive leasing markets,” concluded O’Connor.
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Sydney, Melbourne lead office market recovery: JLL research

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Self-managed super funds (SMSFs) are a way to help you save for your retirement and like all investing, certain rules apply while transacting in property.
Let’s say you want to sell your business premises to the fund.
In an SMSF, its members are generally the trustees meaning they run it for their own benefit.
According to the Australian Taxation Office, while SMSFs are not allowed to buy assets from, or lend money to, fund members or other related parties, they can acquire ‘business real property’.
Defined as a property used exclusively for carrying out a business, the fund is allowed the purchase and sale of business real property provided the deal is done at market value and income from the asset reﬂects a true market rate of return.
Factory, warehouse or a shop all qualify as business real property.
A house used for private or personal purposes can also meet the business real property criteria if the land on which it is located is used primarily for business, such as a farm. Additionally, the house must be in an area of land not exceeding two hectares.
The investment must also be in line with the investment strategy of your fund, such as diversification, liquidity and ensuring members’ returns are maximised.
Raine &amp; Horne Commercial’s executive chairman Angus Raine noted late last year in a news post that “assets priced between $1 million and $3 million were very popular with yield hungry, self-managed super funds.”
Another post on R&amp;H late last year said volatile share markets and poor cash returns were pushing investors and self-managed super funds into Brisbane commercial properties priced from $1 - $2 million.
Among the benefits of your SMSF buying the property is potential tax concession on any income and capital gains from the property. 
As with other super fund assets, there can't be a loan or covenant (charge) over an asset (unless the asset was acquired under a limited recourse borrowing arrangement), according to the ATO website.
These are only general guidelines and if you are serious about your SMSF buying your business premises, it’s best to get professional help.
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Rules for SMSFs buying your own business premises

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The Commercial Hotel in Junee has sold through private treaty to a Wagga Wagga businessman.
Located in the Riverina region of New South Wales, the freehold hotel investment was owned by regional publican Sean O'Hara before he sold for an undisclosed price.
The Commercial Hotel in Junee's central business district is Junee's premier hoteling offering due to its significant gaming room.
The business enjoys an effective monopoly on the hotel gaming market with little competition coming from elsewhere.
The accommodation has 10 rooms and occupies a 1924 sqm corner block at 68 Lorne Street. 
The early 1900's property was sold through Blake Edwards of Ray White Hotels Australia.
Ray White Hotels Australia Director for the Asia Pacific region Andrew Jolliffe said that the group have garnered some notable momentum recently in regional NSW and are excited to bring to market several other significant listings in regional NSW market in and early 2016.
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Commercial Hotel sold in Junee

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The lower dollar continues to work away on Arrivals and Departure trends, with a further +1.8 per cent seasonally adjusted increase in the number of short term arrivals in November, and a -2.8 per cent decrease in the equivalent number of departures.  
The monthly ratio of short term departures this continues to decline, which will act as a twin boost for the domestic economy.
<img class="aligncenter img-responsive" src="https://2.bp.blogspot.com/-b73svb4ZFPU/VpUnsI93FyI/AAAAAAAAak0/7_yWcorhIAA/s640/A2.jpg" alt="" width="640" height="320">
The labour market is not presently strong enough to warrant the exceedingly high level of net permanent and long term immigration seen in 2013 of above 400,000.
The rolling annual figure is now seemingly getting set to stabilise – in November the rolling annual total ticked down slightly from 278,200 to 277,600, with the decline being felt most keenly in the resources states and the regions, as opposed to the largest capital cities.
 
<img class="aligncenter img-responsive" src="https://3.bp.blogspot.com/-O7WpgUtq3xE/VpUnsHJlouI/AAAAAAAAaks/zY07p-aR25M/s640/A1.jpg" alt="" width="640" height="322">
 
The most recent <a href="https://petewargent.blogspot.sg/2015/12/students-to-drive-population" target="_blank">forecasts</a> from the Department of Immigration &amp; Border Protection (DIBP) show that the population growth rebound for the remainder of this decade will be driven by international students rather than by immigrants on 457 or permanent resident visas.
<h4>RECORD CHINESE TOURISM</h4>
The annual number of short term arrivals into Australia surged to a new record high of 7.36 million in November.
There have been significant increases in the number of visitors from India (+19 per cent) and the United States (+9 per cent) over the past year, Americans doubtless encouraged by favourable shifts in the exchange rate.
There can no doubting the key trend here, however, which has been the vast +17 per cent increase in the number of visitors from China, Hong Kong and Taiwan to 1.36 million.
The pace and scale of the increase over the past decade has been breathtaking, as documented regularly on this blog.
 
<img class="aligncenter img-responsive" src="https://4.bp.blogspot.com/-7I2RT3jAbrU/VpUns-kh5eI/AAAAAAAAak4/zg5drP4jalk/s640/A4.jpg" alt="" width="640" height="328">
For the first time China alone accounted for more than 1 million visitors in the year to November, and make no mistake, Chinese tourists spend up big when they come to Australia.
<h4>STUDENTS</h4>
A record 3.38 million persons came to Australia for a holiday over the year, while for the first time this year more than 2 million cited there reason for journey as “visiting friends and relatives”, reflective of Australia’s status as a country built on immigration.
 
<img class="aligncenter img-responsive" src="https://4.bp.blogspot.com/-Z1Fex7hVrZI/VpUnsNsACqI/AAAAAAAAakw/40K-WQd6p_0/s640/A3.jpg" alt="" width="640" height="326">
 
The other key trend to watch this year is the explosion in the number of international students, not least because following a streamlining of the acceptance rules so many are expected to go on to become permanent residents on other visas.
This data series confirmed that the rolling annual number of education arrivals jumped by an unprecedented +71,200 or +18 per cent to 464,600 in the year to November.
 
<img class="aligncenter img-responsive" src="https://3.bp.blogspot.com/-ZSAHnIJp5Ec/VpUns7Fo29I/AAAAAAAAak8/Bhsg-ejlFSg/s640/A5.jpg" alt="" width="640" height="312">
 
Most students are projected to be accepted into the large capital cities.
Pete Wargent is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.
 
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How the dollar is driving demographic trends for property investors: Pete Wargent

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The vast majority of properties sold nationwide to September 2015 did so at a profit, with 91.6% of sales over the quarter selling at a profit, according to the latest CoreLogic RP Data Pain &amp; Gain report.
The report found the total value of this profit was recorded at $17.3 billion, with the average gross profit $265,605. 
According to the report some 8.4% of all homes resold recorded a gross loss when compared to their previous purchase price; the lowest proportion of loss-making resales since December 2014.
"This figure was lower than the 9.2% over the June 2015 quarter and also lower than the 8.9% recorded a year ago. Across those dwellings which resold at a loss over the quarter, the total value of loss was $376.2 million with an average loss of $63,221," it noted.
"Nationally there was $376.2 million in realised losses over the quarter at an average of $63,221 and $17.3 billion in realised profit at an average of $265,605.
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"Across the capital cities, there were $193.5 million in losses with an average of $71,996 per loss-making resale compared to $14.4 billion in profit at an average of $324,887. The combined regional areas recorded $182.7 million in losses at an average of $55,996 compared to $2.9 billion in profit at an average of $139,798. The average losses were greater in the capital cities, however they also generally experienced much greater profits, more than double those in regional areas."
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The proportion of loss making resales is lower than the financial crisis peak nationwide with the exception of Darwin to September 2015, according to the latest CoreLogic RP Data Pain &amp; Gain report.
The report found loss-making resales lower in Sydney, Melbourne, Brisbane and Hobart, higher in Perth and Darwin and flat in Adelaide and Canberra and said values growing sharply in Sydney and Melbourne over the year with moderate value growth in Brisbane, Adelaide, Hobart and Canberra and values falling in Perth and Darwin. 
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Proportion of loss-making resales lower than the financial crisis peak: Tim Lawless CoreLogic RP Data Pain & Gain national

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<div id="post-body-3564066941325967105" class="post-body entry-content">
<div>Another interesting article was written by the doyen of economic commentary Ross Gittins this weekend, in which he points out that the economy will look better once mining investment stops falling. </div>
<div> </div>
<div>The reversion in resources capital investment has long been flagged as a major downside risk for the Australian economy, or even as some kind of economic Armageddon.</div>
<div> </div>
<div>Engineering construction activity had declined by about 10 percent in the year to September 2015 to a quarterly value of around $25.4 billion, which is now some 24 per cent down from the peak of $33.6 billion. Yet as highlighted by Gittins, despite this ongoing contraction the economy managed to grind out GDP growth of 2.5 per cent, helped by net exports and an increase in dwelling construction. Indeed, the non-mining economy grew by about 3 per cent. I took a more detailed look at the components of GDP growth (and the troublesome decline in the terms of trade) over the year to September 2015. Mining investment won't fall forever The good news noted by Gittins is that resources investment cannot continue to decline forever, and sooner or later the nadir will be reached.</div>
<div> </div>
<div>The latest available figures showed that the decline was reasonably well advanced by September 2015, although activity still remained well above its "normal" level, particularly in Western Australia and the Northern Territory.</div>
 <div class="separator"><a href="/images/2016/02/02/A1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/02/02/A1.jpg" alt=""></div>
 <div>As you can see in the chart above the good news for Queensland is that much of the decline had already taken place by September, with quarterly engineering construction activity declining by 42 per cent year-on-year to just $4.9 billion. </div>
<div> </div>
<div>This was a substantial 57 per cent below the September 2013 quarterly peak, when engineering construction activity hit a state record $11.5 billion. </div>
<div> </div>
<div>The September 2015 National Accounts showed state final demand (a measure of activity which excludes exports) in Queensland of -0.2 per cent marking a fifth consecutive quarterly decline for the Sunshine State, driven by an ongoing weakness in private gross fixed capital formation (declining non-dwelling construction) as large scale resources projects approached their completion. This was a significant improvement on the -1.3 per cent decline in Queensland state final demand in the June 2015 quarter, and hearteningly the largest part of the decline in engineering construction activity is now in the rear view mirror.</div>
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<div>A great challenge for Western Australia (where quarterly engineering construction activity is still highly elevated at $10.3 billion) and the Northern Territory (miles above historic norms at $2 billion, due to the massive Inpex Ichthys LNG project), however, is that the great bulk of the decline in construction activity has yet to take place. </div>
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<div>Trade balance improving</div>
<div> </div>
<div>It is worth noting that decline in resources construction is not in itself a bad thing: after all the whole point of constructing mining and resources projects is that they will eventually produce commodity exports (reductio ad absurdum if a decline in construction is a 'bad thing', we should never have partaken in a mining boom in the first instance). A look at the latest International Trade figures shows that over the past three months Queensland has produced a positive trade balance of $1.2 billion per month, after churning out several negative prints in 2014. </div>
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<img src="/images/2016/02/02/QLD2.jpg" alt=""> <div> </div>
<div>With the Gladstone natural gas venture now kicking into gear and the first shipments underway, GLNG exports will begin to make a welcome positive contribution in 2016, question marks over commodity price action notwithstanding.</div>
 The wrap <div> </div>
<div>The figures show that the decline in mining investment still has a way to run, but eventually the downturn will be complete and the remainder of the economy will enjoy rising commodity exports. The biggest unknown factor is what will happen to commodity prices over the years ahead. Queensland's economy has been through a rough trot since 2013 as resources investment has nosedived, knocking it down to sixth spot in the state rankings. However, things should begin to pick up in time, and although population growth from net overseas migration has slowed, Queensland will be one of only two states (the other being Victoria) to benefit from <a href="https://petewargent.blogspot.co.uk/2015/12/sydney-melbourne-dominate-population" target="_blank">net interstate migration</a>, particularly as more Sydneysiders opt to make the journey north. </div>
<div> </div>
<div>But if doom and gloom is your thing, fear not, for there will always be someone doing something stupid somewhere in the world, and in turn there will be something new to worry about: oil prices, China's property bubble, a Cyprus default, weapons in North Korea, the Ebola virus...</div>
<div> </div>
<div> </div>
<div>The week ahead!</div>
<div> </div>
<div>An exciting week ahead! </div>
<div> </div>
<div>The Reserve Bank of Australia (RBA) will leave interest rates on hold at 2 per cent on Tuesday afternoon (recall that it wasn't so very long ago that a rate cut by February was 100 per cent priced in). </div>
<div> </div>
<div>With the unemployment rate having declined from 6.4 per cent to 5.8 per cent and employment having reportedly grown by +2.6 per cent in 2015, another interest rate cut does remain fully priced in, but not until the fourth quarter of 2016.</div>
<div> </div>
<div>At the end of the week the RBA will also release its Statement on Monetary Policy (SOMP), within which it is expected that economic growth forecasts for 2015 will be revised up from 2.25 per cent to 2.5 per cent. </div>
<div> </div>
<div>Inflation forecasts on the other hand are likely to remain unchanged after this week's release showed that inflation is well under control. </div>
<div> </div>
<div>Also this week we will get the latest Building Approvals figures for December, which may show a bit of a bounce from last month's sharp drop, but we might expect to see the downtrend remaining in place. 
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<div>Finally there will be the latest International Trade figures to look forward to - expect to see a another substantial deficit in December of perhaps more than $3 billion, with low iron ore prices the key driver - and recall there was a wild explosion in rural exports (legumes boom!) last month, which surely cannot be repeated in December. <div class="separator"><a href="/images/2016/02/02/A3.jpg" target="_blank">Click to enlarge</a></div>
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<div>The truth is still out there. Stay tuned, and have a great week! </div>
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<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>. 
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Brighter days ahead for Queensland: Pete Wargent

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Rental growth across the capital cities over the past twelve months has reduced further, with dwelling rents unchanged over the year. 
According to CoreLogic RP Data's Tim Lawless, with a rental series that extends back to 1996, these are the weakest rental markets conditions ever seen. 
“In fact there hasn’t previously been a twelve month period when rents didn’t rise across our combined capitals index.” he says. 
Darwin and Perth are dragging the broader capital cities’ rental indicators down with weekly rents down 13.4% over the past year in Darwin and 8.6% lower in Perth. 
Dwelling rents were also down in Brisbane (-0.7%) and Adelaide (-0.4%). 
The largest rental increases were in Sydney and Melbourne where weekly rents rose 1.4% higher, and 2.1% higher respectively over the past twelve months. 
Mr Lawless said with dwelling values rising substantially more than rents in Sydney and Melbourne, this ongoing effect has created a compression in gross rental yields to the extent that gross yields in these cities are now only marginally higher than record lows.”
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