Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

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 Chinese investor has purchased the three-storey Junction Club in Moonee Ponds for $10.7 million.
CBRE's Justin Clarkson and Scott Callow sold the club at <a href="https://www.realcommercial.com.au/property-hotel+leisure-vic-moonee+ponds-501058655" target="_blank">740 Mount Alexander Road</a> on behalf of the private syndicate, United Investment Management.
It sold at $8.4 million in 2011.
The property is largely leased to Harness Racing Victoria until 2022. There is a total passing income of $802,500 per annum.
The long established gaming venue with 80 EGM's, public bar with Pub TAB and bar/bistro.
It had the potential for a high rise residential development on the 1,943 square metre holding at the intersection connecting Mount Alexander Road, Ascot Vale Road, Pascoe Vale Road, Dean Street and Puckle Street. 
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jchancellor-FAypfDUnLy

Chinese investor buys Moonee Ponds Junction Club

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The latest Quest Serviced Apartments has been opened at Woolloongabba, one of Brisbane’s largest business hubs outside of the CBD.
Quest chief Zed Sanjana said continued expansion in Queensland was a "priority" for the serviced apartment operator.
The Quest Woolloongabba at 130 Logan Road has 132 studio, one, two and three bedroom serviced apartments.
<img src="/images/2014/09/03/Woolloongabba%20sept%203%20two.png" alt="">
It is among the new Quest properties to open this financial year including serviced apartments scheduled for Townsville, Kelvin Grove and Chermside.
Nights start at $184.
Quest’s properties are owned and operated by franchisees, in this case, Simon and Kylee Russell.
The property was previously the Joe David used Ford car yard. 
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Quest opens at Woolloongabba

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Martindale, a Kings Cross terrace with 10 bedrooms and 11 bathrooms has been sold for $2 million pre-auction by McGrath Estate Agents.
The property with a distinctive dark crimson facade at 52 Kellett Street features an insightful floor plan indicating (pictured below) the purposeful layout.
Click to open in new window:
<a href="/images/2014/07/22/potts-point-july-22-floor-plan.gif" target="_blank"><img src="/images/2014/07/22/potts-point-july-22-floor-plan.gif" alt=""></a>
It featured in the 1999 SMH report by the investigative duo Kate McClymont and Andrew Clennell entitled, "Our Brothel Barons".
At the time it reportedly traded as Classique, a brothel whose advertising once boasted of a speciality in lesbian double acts. It has more recently traded as Studio 52, Star 52, Antonio’s Angels and Secret Desire. The rates have been at around $120 for 30 minutes.
The building, which has been marketed as in Potts Point, was listed previously in 2011, 2012 and 2013 without success.
It last traded at $2.1 million in 2006 when bought by ETC Australias Group Pty Ltd. Its earlier sales were $1.5 million in 2004 and at $1.38 million in 1999.
The premises were for sale, not the business.
More than $1.8 million was being sought.
There is no registered lease, with no rental income advisory given in <a href="https://www.mcgrath.com.au/buy/house-potts-point-nsw-2011/228008/?searchID=41071082" target="_blank">the McGrath marketing</a>.
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Pre-auction $2 million deal for Kings Cross 'special' offering

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Serviced office space provider Servcorp has signed onto a floor of the landmark One World Trade Centre, which is currently under construction in Manhattan.
Servcorp took a 15-year lease on the 85th floor, its fourth Manhattan site. 
Servcorp's three Manhattan locations are in 17 State Street, 1330 Sixth Avenue, and 375 Park Avenue.
The Australian company, which operates serviced and virtual office space across 136 floors in 52 cities in 21 countries, last week reported a rise in net profit for the year.
The group expects to increase net profit by 15% in 2015.
Globally the floors are 79% occupied, just below the 85% figure they view as optimal. 
"We’re 90% occupied in the US,” Servcorp chief operating officer ­Marcus Moufarrige told Fairfax Media.
The 3,230 square metre floor in One World Trade Centre would be the only serviced offices available within the building to be anchored by publisher Condé Nast.
It is reportedly expected to spend $1.8 million fitting out the 85th floor.
The new tenant brings One World Trade Center to almost 57.5% leased, ahead of its expected opening in late 2015.
The building, set to be the tallest in the Western hemisphere, is being developed as a joint venture between The Port Authority of New York and New Jersey and the Durst Organisation.
They were recently forced to cut rents in the middle floors to $69 per square foot.
The upper floors have $75 to $100 per square foot asking prices.
The <a href="https://online.wsj.com/news/articles/SB10001424052702303903304579586270070420060" target="_blank" style="line-height: 1.3em;">Wall Street Journal reported</a> when the middle-floor rents were cut in May that the $3.9 billion project "has little hope of proving to be a good financial investment in the short-term".
 
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Servcorp secures New York One World Trade Center office space

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A majestic 1930s Brisbane art deco triplex has been listed for sale for the first time offered in almost 50 years.
The Carrington on Gregory Terrace at Spring Hill has views across parklands to the City skyline. 
It is a 567 square metre corner block with four garages off Bathgate Street.
<a href="https://www.raywhite.com/qld/spring-hill/1186893/" target="_blank">Offers close with Ray White</a> on 24 September.
The ground floor is approved as an office and is currently used as a specialist doctors practice but could easily convert back to residential. 
The expected gross returns if fully rented are given as $120,000 per annum by agent Dean Yesberg.
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Art deco Spring Hill, Brisbane triplex listed

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The long-time owner of 160-162 Lygon Street, Carlton secured $3.66 million at recent auction, just shy of the strip's all-time record.
The 684 square-metre commercial building came with a six-year lease to long-term tenant, BC’s Bar Centrale at an annual rental of $166,472, reflecting a 4.5% rental yield.
Teska Carson handled the auction for the vendor, the Bussolaro family who had held the ­property for 45 years.
Located on the corner of Argyle Place East, the three-storey building includes a ground floor café and bar, a function room with a commercial kitchen and a caretaker’s unit.
<a href="https://www.realcommercial.com.au/property-retail-vic-carlton-501173731" target="_blank">The 250 square-metre site</a>, zoned Commercial 1, includes an 11-metre frontage to Lygon Street.
In absolute terms, the highest price paid since 2008 was $3.71 million in 2009 for 350 Lygon Street, a two-level corner site measuring 173 square metres, equating to $21,445 per square metre.
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Lygon Street retail sale at $3.66 million

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GUEST OBSERVATION
The Lazarus of the Australian economy – consumer spending – seems to be starting to recover from the dead zone created by budget related shocks. But how long can it last? The long-term prognosis remains troubling.
A growth recession?
As I am sure all readers will recall from their school days, an oxymoron is a combination of contradictory words. Cruel kindness, for example. The term comes from the Greek for ‘pointedly foolish’, but those in Australian retail property may be feeling that the somewhat oxymoronic-sounding ‘growth recession’ is more serious than that.
Virtually none of the federal government’s cuts and increased costs are likely to pass through the Senate. This is good news for the retail sector; if some of these measures were to make it through annual household income would drop by over $600, causing big spenders on low to medium incomes to think twice about splashing out on the next big purchase.
While a small bounce back in consumer confidence has seen a slight pick-up in retail sales over the last few weeks, this may not be enough to save spenders from having to tighten their belts and save the retail property sector from pain. For over five quarters Australia has registered annual growth at less than 1%, which is disturbingly news considering Australia’s population growth stands at 1.8%.
It’s almost like a recession on an economic growth per capita basis and that is why things are, and are likely to remain, tough for retail.
GDP per capita is moderating…
<img class="alignleft wp-image-6871" src="https://www.btim.com.au/media/GDP1.png" alt="GDP" width="550" height="306">
GDP per capita: % change quarter on quarter chain volume measures. Source: BT Investment Management.
…affecting retail sales in 2014
<img class="alignleft wp-image-6870" src="https://www.btim.com.au/media/Retail-Turnover1.png" alt="Retail Turnover" width="550" height="295">
Retail turnover (SA). Source: BT Investment Management.
There’s a strong warning signal for retail sales
Over the past three years interest rate cuts have prompted some improvement in retail sales. Even with rates kept at historic lows this streak won’t continue. Australians just aren’t interested in borrowing – they’re keeping 24 months ahead of their mortgage repayments and getting better at saving. Consumers have already stopped spending on big ticket items like overseas holidays and cars – new car sales are falling 3% year on year.
Looking to the future, there’s one warning signal investors must not miss – household income growth has dropped from 11% in 2007 to just 3.5% in 2013. This typically correlates with a 2% drag on retail sales, which, closely followed by falling rents, weakens retail property yields.
What it will take for conditions improve?
There’s still a world of opportunity in retail property if you know where to look. Very high population growth in Australia (the highest in the developed world) ensures continued demand for quality shopping centres, but there are some major challenges ahead – rising online sales, the growth recession and lacklustre pay rises will be compounded when interest rates rise once again.
For a sustained increase in retail spending and a retail property boom, we need to see improving income growth, solid house price growth and growing confidence in the economy and the federal government.
Julia Forrest is REIT portfolio manager at <a href="https://www.btim.com.au" target="_blank">BT Investment Management</a>.
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jforrest-H4ErufrJeZ

Major challenges remain for retail property

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NAME: Philip Stephens<img src="/images/2014/09/03/Philip-Stephens-profile.png" alt="" style="float: right;">
POSITION: Director, industrial
COMPANY: Colliers International
OFFICE LOCATION: Level 20, Central Plaza One, 345 Queen Street, Brisbane.
How long have you been in the industry? 
10 years
What's happening in the area you specialise in? 
I specialise in Brisbane's industrial market. There has been a number of large logistics users take advantage of sharp rental deals. With these users vacating it has resulted in a large supply of older style buildings, many of which are in the process of being refurbished for their next lifespan.
Activity from both small investors and large REITs has been strong, with some investors buying older assets with leasing risk and benefiting from the rental uplift.
Describe the most interesting commercial property you have worked on? 
A World War Two Igloo which I sold for Thiess Mining for $6,200,000. It was a complicated lease back situation with the building being heritage listed.
What are the ingredients to being successful in your job?
Hard work, persistence and first class market knowledge.
What aspects of your role do you enjoy the most? 
Meeting a variety of business people and understanding how they grew their business.
Where would you invest a spare $750,000?
Either an industrial building with some leasing risk or the share market.
Which football team do you support? 
Quennsland Reds.
What's your favourite app or techno gadget?
<a href="https://www.strava.com/" target="_blank">Strava</a>.
How do you use social media?
I primarily use LinkedIn and Instagram. <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/philip-stephens/30/565/40" target="_blank">LinkedIn </a>is a very useful tool I use regularly as it assists me in communicating with a range of different clients and allows me to promote other industry groups I am a part of.
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jrichardson-uRX5hFdKfN

In profile: Colliers International's director, industrial, Philip Stephens

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With strong results for dwelling value growth being recorded in the latest RP Data Core Logic Home Value Index, RP Data’s research director Tim Lawless suggests that growth might be better outside of the ‘big’ capitals.
At present, Lawless noted that investors are concentrated across Sydney and Melbourne, where the markets have proven strong capital gains but now lower yields. In fact, yields are currently so low in Sydney that <a href="/expert-insights/buying/sydneys-16-2-year-on-year-growth-straining-yields-rp-data">they’re on track to race below Melbourne</a>.
“Potentially there are better investment returns to be had in the smaller capital cities where the growth trend is less mature and yields are also healthier,” he said.
While Sydney and Melbourne <a href="/news/vic/melbourne-records-strongest-august-2014-quarterly-growth-rp-data">recorded particularly strong increases in prices over the last growth cycle</a>, other capitals have remained subdued.
“Looking at the remaining state capitals over the same time frame, the next best performer was Perth where values are now 15% higher, followed by Adelaide at 9.9%, Brisbane with 5.3% and Hobart where dwelling values are actually 1.5% lower,” he said.
While yields are compressing in most capital cities, Adelaide and Hobart’s apartment markets have actually moved higher for yields over the past 12 months.
However, while Lawless advisers investors look at these smaller capitals, it’s clearly not a common approach quite yet.
“With yields so low in the cities where values are seeing the largest capital gains, it is clear that investors remain very much focussed on value growth rather than yield,” he said.
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jduke-EHk3XBmHkn

Investors should look to smaller capital cities for returns: RP Data

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Hi Margaret
I'm buying my first home in Melbourne and I am worried about how this will effect my investments later if I borrow at 90%.
Does it matter, or should I be saving for longer or buying cheaper?
Ive been told that I should buy as soon as I can even if it means LMI?
Regards,
David
Margaret's answer on the next page. Please click below. 
<hr class="system-pagebreak">
Hi David,
I always wonder who is doing the telling when investors say ‘I have been told to…’ 
Very often it is either someone wanting to sell you something like a property, a loan, or a training program, or a well-meaning friend who may have done some reading or been to a course. Or it could just be that they did whatever it is they have been told to do and experienced some success from it.
The important thing about any property investing strategy is that there is simply no one size fits all approach. 
When it comes to the level of gearing you should be undertaking, there are many things to consider such as:
<ul>
<li>Your personal risk profile – are you conservative, balanced or assertive? Your results from profiling your risk will determine the level of gearing you should use.</li>
<li>Your time till retirement – if you borrow 90% and it all goes horribly wrong, how many more years of earning capacity do you have to get back on top?</li>
<li>Your present income levels – if your property experiences vacancy and you have high levels of debt, can you maintain the mortgage?</li>
<li>The security of your job – if you are unsure about your tenure then you will not want to be taking on high levels of borrowing.</li>
<li>Your other assets.  If you have little in the way of other assets, a 90% loan can be a big mistake.</li>
<li>The lender’s mortgage insurance – at up to 3% of the loan amount, this will further reduce your equity to a very risky 7%. Add stamp duty and borrowing costs and you will likely owe more than your property is worth.</li>
</ul>
One of the things I find about proponents of high levels of gearing, such as a 90% loan, is that their thinking is what I call ‘good time’ thinking.  They operate out of a misplaced notion that property will always go up and that it will only be a matter of time before your equity increases. 
Nothing can be further from the truth and, in addition to the fact that there are many moments in times past when property has indeed fallen (such as after a crazy period of buyer frenzy such as we have been seeing in Sydney), there is a good chance tha, as a first time investor your first property may well perform far less well than you had hoped. 
You are new to this and your first property purchase brings with it the greatest risk you are likely to ever have of choosing badly, not doing the research well or falling prey to a spruiker who sells you something with an upside bigger to him than it is to you!
There are many things you can do from here, including saving more, biting off less with a cheaper property, or maybe even seeing if your parents are interested in helping out a little by offering a little bit of their equity to get you started. 
Whatever you do, don’t try to do it alone.  Get some good quality advice from someone with no vested interest in what you are about to do, and get educated before you start.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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