Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

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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I’ve spent considerable amount of time in the US in the last six months; both as a holiday-renter in Hawaii and as a short-term-stay, ‘business-traveller’ in Los Angeles. During these visits I’ve had some great exposure to the self-managed holiday rental property market not as an investor, but as a tourist renter.
The time spent got me to thinking about self-managed rental investment properties and produced a list of pros and cons if you are considering this leasing strategy for your rental property.
Pros
<ul>
<li>Gross returns can be lucratively higher than residential home property investment.</li>
<li>Property types that can achieve this aren’t just restricted to ‘holiday rentals’, whereby you buy into a scheme such as a time-share condo, or as part of a resort investment, but also well-located, private properties.</li>
<li>You are the ‘direct manager’ of your property, enabling you to save money on management fees. This can create a greater chance of a property being positively geared and returning better revenue.</li>
<li>Online services such as AirBnb and TripAdvisor enable you to affordably find short-term tenants easily and securely. This means that investors could consider coastal properties that are not part of any specific resort complex as potentially high-return short-term-stay, self-managed, investment properties.</li>
</ul>
Cons
<ul>
<li>Though gross returns are higher, sometimes net returns are not as great due to increased management fees eating away the revenue. For some properties the returns might even be less than a traditional domestic investment property, but with more management work (i.e. your spare time) required.</li>
<li>Seasonality. In Australia this is a big deal. Take for example holiday properties in the south or Tasmania. Demand may be great in summer, but those returns achieved in summer may not average out over a financial year to be very good, when accounting for the quiet times during winter.</li>
<li>Running costs. One of the biggest challenges in Australian holiday property is that most properties are part of complexes with extortionately expensive management costs. So, above and beyond the standard strata, council, and water rates you’d need to pay, there are cleaning/housekeeping costs, higher owners strata rates to pay for pools, additional staff, and so on, to be aware of.</li>
<li>Seaside property maintenance. Unlike residential housing on the coast, where the sea air eats away and the pretty paint work yet the property can still be rented as-is, seaside holiday resorts need to look immaculate at all times, to ensure the resort remains desirable for future guests and this comes at a significant cost to owners.</li>
</ul>
Further Considerations
Taking Hawaii as an example/case study; I believe some locations offer solid investment potential for those open to the concept of remote self-management and some different options both in terms of ownership structure and costs, as well as supply and demand. Here’s just a short list of observations I made, through asking some locals and concierge staff some questions:
<blockquote>
Some locations offer solid investment potential for those open to the concept of remote self-management
</blockquote>
Climate
Climate plays a huge part to the overall financial success or failure of a rental property of this type. The beauty of a place like Hawaii is that for almost every month of the year the climate is pretty much the same, year-round. This means that demand for holiday property is consistent all year long, with no real dry-spells; i.e. very low vacancy rates. Australian holiday rental properties in a year-round climate are harder to source.
Demand for the area
With a domestic population of 350 million and growing, Hawaii is highly appealing for domestic US holidaymakers. This is an important area to pause on. Solid domestic tourism participation is important in any country – Australia included – because these holiday makers aren’t affected by currency exchange variations when they travel. This makes travelling in your own backyard constantly feasible.
Australia on the other hand has a small domestic population, making holiday rentals higher risk because of our reliance on international tourists to rent the properties. Our fluctuating currency suddenly becomes an unknown that is difficult to account for in your investment.
Exclusivity:
A place like Hawaii is expensive to fly in to from any location in the world, not just Australia. This isolation mixed with strong desirability creates a near-unique opportunity for Hawaii more-so than Australia to attract only affluent holiday-makers.
With a more affluent audience occupying the properties there is reduced risk of damage to properties and other problems that can occur when a location is not as exclusive. Insurances of course always need to be considered for any property investment; however, policies are often more affordable when an affluent rental tenant occupant (even short term ones) are quoted on.
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cmcevoy-Go82SmsJA9

The pros and cons of self-managed holiday rentals

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Have you noticed how people are generally now acting in a far more positive manner and that's simply because they are starting to feel "wealthy" again.
But you need to look deeper
With share and property prices rising, consumer confidence has finally returned — which was confirmed by the improved retail sales during December and January.
Plus, you saw GDP exceed expectations — by rising 2.8% for the December quarter.
This increased spending is also being supported by high household savings.
A clear indication of renewed confidence
And this has shown now up in spending for entertainment and eating out — which historically, has been recognised as a clear indication of renewed confidence.
New housing approvals have improved by 35% over the past 12 months. And once complete, these homes will also need to be fully furnished — which is great news for all the homemaker centres.
Furthermore, Coles will be investing more than $1 billion to construct 70 new supermarkets, over the next three years.
<blockquote>
All of those workers who contribute to this surge in exports will all need to be housed somewhere.
</blockquote>
In its May Budget, the government intends to curb wasteful recurrent expenditure inherited from Labor. While it also plans to embark upon significant infrastructure projects — to start boosting employment around the country.
A surge in exports
For the first time in most people's memory, Australia will be enjoying a positive balance of trade.
In other words, for the next decade or so, you should be seeing our exports exceeding imports. And this will further help in reducing Australia's overall debt.
Even though the boom in mining expenditure may have come to an end, the resultant export of raw materials will now continue for years to come.
Furthermore, our exports in education, tourism and business services will all grow dramatically — as the global economy improves.
All of those workers who contribute to this surge in exports will all need to be housed somewhere. And that will open up opportunities for new suburban office and warehouse facilities around Australia over the next three to five years.
Further evidence of an underlying strength in the commercial property market is now provided by the latest IPD/Property Council index.
During 2013, you saw investors (both local and overseas) stride out from the shadows of the global financial crisis. And as this graph confirms, every sector has displayed a healthy improvement in selling yields.
Both the US and UK commercial property sectors have responded slightly ahead of Australia, because their labour markets (and therefore demand for space) have been improving at a faster rate.
Savvy investors are already in the market
Investors have already sought out solid opportunities.
Nevertheless, there has been significant (and consistent) Asian money pouring into Australia over the past 12 to 18 months — as investors have already sought out solid opportunities in the $100 million plus bracket.
This has effectively forced local buyers to bid up prices for lower-valued properties — or simply miss out on securing a position, before the expected upsurge gets fully underway.
The effect of this strong activity won't take very long to filter down through to the lower price brackets and then, out into the wider suburban markets around Australia.
Bottom line: They say that no one rings a bell at the bottom of the market. However, what's occurring is probably the closest you'll likely get.
Therefore, observe the signs and make sure you act accordingly if you've been at all hesitant about stepping into the market.
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Commercial property benefiting from economic upturn

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Kerry Packer once said ‘Cash is king’.  That was easy for him to say after Alan Bond had just given him $1 billion.
For the majority of us who do not have the luxury of a Bond we need to invest our money so we can accumulate the cash at some future date.
As property investors begin to return to the market many will be enticed by the lure of cash tax benefits such as depreciation and stamp duty savings.
While these benefits are an important consideration in your overall investment strategy, they should never be the driving factor in asset selection. This is because they are short-term tax benefits that have very little impact on the future performance of the investment.
<blockquote>
Yes it maybe is true that cash is king for those that have it, but for the rest of us the long-term viability of the investment is ‘King’
</blockquote>
Stamp duty savings are a one off benefit at the time of purchasing off the plan. At the same time most of the depreciation allowance an investors receives is used up in the first five to 10 years.
Investors need to be wary that these tax benefits are often used as marketing tools to sell property but because they are only short-term the investor will not be able to use the same marketing tools when it comes time to sell their investment.
When selecting investment property it is important to focus on the long term economic drivers that will underpin its performance and will continue to be there in years to come. These factors include the underlying land value, supply relative to demand and the evolving demographic trends. 
While there is nothing wrong with investing for tax benefits investors need to consider the overall investment. In other words if in the end the investment does not make any money or even worse looses money were the tax benefits alone worthwhile.
My understanding of investing is to invest to make money at some date in the future. The benefits should come at the end not at the start.
Yes it maybe is true that cash is king for those that have it, but for the rest of us the long-term viability of the investment is ‘King’. Everything else is just a bonus.
As property investors return to the market they would be wise not loose sight of that fact.
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marmstrong-sd3emVLPPb

Is cash really 'king'? Knowing if your investment stacks up

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It’s been quite fascinating to follow the Asian buying phenomenon of Australian real estate of late – more particularly how the buying demographics are changing. Most notable the smallest market demographic today in Australian real estate is brand new constructed properties which remain dominated by Asian investors. In recent times we have seen a shift with Asian investors moving into the traditional home market which previously was a no-go market. A reason why would be that this is Australia’s largest property market so it makes sense that now they want to participate in all the available markets.
On a global scale Australia has not really attracted the ultra high net worth individuals (UHNWI) although we are now witnessing this emerging market with the world’s wealthiest fast tracking real estate acquisitions in Australia. Knight Frank 2014 forecasts that 66% of global growth in the numbers of UHNWIs will be from Asia over the next 10 years.
No doubt they would be closely observing that prices have been the strongest in Sydney (up 14% over the past year), Perth (9%), and Melbourne (8%) although it is yet to be ascertained what percentage of these new found gains can be attributed to foreign ownership. Knight Frank Australia’s research director Matt Whitby said there was growing demand from Asian buyers, particularly Chinese, for prestige residential properties in Sydney: “This is driving prices and it is expected Sydney’s prime market growth will continue into 2014, buoyed by low interest rates and steady foreign demand, especially from South-East Asia and China.”
In 2013, over 74% of overseas investment into residential developments in Australia originated from Asia. If one looks at the Forbes billionaires list there are 135 property tycoons in the list who have obviously benefited of late from surging property values around the globe. Even more interesting is that 14 out of the top 20 richest property billionaires hail from Asia. This is further reinforced by recent Foreign Investment Review Board data which shows that Chinese buyers poured $5.9 billion into Australian property last financial year.
Last week in Property Observer Jonathan Chancellor wrote an interesting piece <a href="/news/the-ngs-singapores-richest-family-spend-425-million-on-sydney-trophy-property">The Ngs, Singapore’s richest family, spent $425 million on Sydney trophy property,</a> which again highlights how Sydney in particular is now top of the shopping list for wealthy Asian investors. The sad reality being that with all the buying loopholes currently available in Australia our government has absolutely no idea just how large this buying purge is – well not until 2016 when the next Census of Population and Housing is conducted in Australia.
<a href="https://www.rwm.com.au/files/2014/03/13-03-2014-11-58-11-AM.jpg"><img class="aligncenter size-full wp-image-8465" src="https://www.rwm.com.au/files/2014/03/13-03-2014-11-58-11-AM.jpg" alt="13-03-2014 11-58-11 AM" width="460" height="234"></a>
<a href="https://www.rwm.com.au/files/2014/03/13-03-2014-11-59-51-AM.jpg"><img class="aligncenter size-full wp-image-8466" src="https://www.rwm.com.au/files/2014/03/13-03-2014-11-59-51-AM.jpg" alt="13-03-2014 11-59-51 AM" width="460" height="255"></a>
Interesting that the research into these graphs by Digital Finance Analytics (DFA) found their surveys identified that after 12 months in Australia most are likely to buy in Sydney (47%) or Perth (35%). By extrapolating this data DFA estimates demand for property from migration over the next three years shows an extra 900,000 properties will be needed – of this about 5.6% is driven by net migration. On that basis given past and present construction data I would think we would be lucky to see 300,000 of the required 900,000 new homes built by 2016. On that very basis it would be reasonable to assume that prices more particularly in Sydney will continue to rise for quite some considerable time to come. At some stage down the track governments will be left with no alternative but to play catch – up where the fastest way to do that will be to build highrise developments.
<blockquote>
Negative gearing is now completely out of control to the extent it has the government at a complete loss to understand what is the best approach.
</blockquote>
Unfortunately in Australia today, aside from not having a Housing Minister, there is no strategic housing plan in place so there is absolutely no possibility of these recommended key performance indicators being met. Why should overseas investors be allowed to qualify for first home buyer grants? Then of course we come to negative gearing which is now completely out of control to the extent it has the government at a complete loss to understand what is the best way to bring this back under control.
I’m proud to say that <a href="https://www.rwm.com.au/2014/03/07/the-great-chinese-property-burn/" target="_blank">last week’s post</a> did start many conversations<a href="https://www.rwm.com.au/2014/03/07/the-great-chinese-property-burn/" target="_blank" title="The Great Chinese Property Burn.">.</a> Which is why I believe that Tony Abbott and Joe Hockey will tighten overseas buyers when the May Budget is handed down because nobody can really tell just how powerful this buying dynamic is until many years later.
A Housing Minister and an Australian strategic housingpPlan would be a wonderful start given at present we are catering for parties with absolutely no idea how many will turn up. We all know what happens when that happens, don’t we.
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robertsimeon-hRNTwJyXkQ

The shifting dynamics of the current buyer demographic 

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Over $10 million was spent on real estate every day in Boroondara during 2013.
It takes a few months after the end of the calendar year for a vast majority of property transactions to settle and be finalised.
With final numbers for 2013 now available, a comparison with previous years can now be undertaken.
In 2013 there were 81,590 residential sales in Melbourne and 107,845 in Victoria. Looking at the Melbourne market over the medium term this is a comparatively low level of sales. Since the year 2000, nine years have seen a higher level of sales with a peak in 2007 with 105,194 sales.
Thankfully, a combination of more confident consumers and record low interest rates has been the catalyst for the level of sales in 2013 rising above the two preceding years of 77,867, and 73,459 respectively.
It is important to note that the volume of transactions has a direct impact on the health of the Victorian government budget as a significant portion of its income is derived from stamp duty as well as the industries that supply and support the housing sector, real estate, building and ancillary services.
On a more local basis, the highest number of sales took place in the city’s growth areas with the highest levels of the spending taking place in the inner east.
<blockquote>
The highest number of sales took place in Melbourne's growth areas with the highest levels of the spending taking place in the inner east.
</blockquote>
Across the state’s municipalities, the highest number of total transactions took place in Casey where 4,130 sales were recorded equating to around 11 sales every day. Similar numbers were recorded in the Mornington Peninsula with inner city locations, Melbourne and Boroondara following.
The largest volume of sales in financial terms was recorded in Boroondara where $3.97 billion was spent on residential real estate, or just over $10 million every day.
At the other end of the scale, Nillumbik recorded the lowest number of sales, at 946 and the lowest in financial terms at $507 million.
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rlarocca-zWhvjay44N

$10 million spent on property every single day in Boroondara

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Five years ago, 30% of new dwellings constructed were units and townhouses. Since 2009, the market-share of attached dwellings has risen steadily, reaching 39% last year.
And the latest building approval figures suggest units now comprise 43% of new dwellings.
According to research from Bankwest, demand for medium-density housing has reached the highest level on record.
The Bankwest Housing Density Report revealed that 43% of new home approvals are medium-density dwellings. This is up from the 39% national average in the previous year.
Not surprisingly, capital cities account for 87% of medium-density approvals in the past 12 months. In five cities, units and townhouses comprised more than half of total dwelling approvals – including 68% in Sydney, Canberra and Darwin, as well as 55% in Melbourne and 53% in Brisbane.
Partly this is about affordability. In Sydney, the median unit price is $221,000 less than the median house price. In Melbourne the difference is $138,000, while in Darwin it’s $165,000.
But it’s more to do with lifestyle choices. Busy lives and the value people place on their leisure time points many buyers to a life-maintenance dwelling that doesn’t have gardens to weed and lawns to mow.
For those who want to be close to the inner city at a reasonable price, an apartment is the favoured option.
But buyers need to be careful. Several of our inner-city unit markets are over-supplied and it’s likely to get worse.
<blockquote>
But buyers need to be careful. Several of our inner-city unit markets are over-supplied and it’s likely to get worse.
</blockquote>
Melbourne already has huge vacancies (up to 10% in some near-city markets) and, according to PRDnationwide research, there are 88 large-scale unit projects under way or proposed.
Brisbane has high vacancies (6% in the CBD and approaching those levels in several inner-city suburbs) and has 69 large unit developments coming up. Perth has high vacancies as well, though the number of new projects in the pipeline is relatively small, with 13 new ones identified by PRDnationwide.
Sydney, to date, has not developed an over-supply and there are relatively few projects in the pipeline: 27 new ones under way or proposed.
It’s in Sydney that the trend towards medium-density living is most noticeable. Several of Sydney’s growth markets are apartment markets, including the inner-city areas Chippendale, Darlinghurst and Woolloomooloo - and the City of Canterbury, which includes suburbs such as Campsie, Lakemba and Roselands, where units are affordable.
Rising demand for apartments as a dwelling choice has also challenged the old paradigm that houses on land show better capital growth than units. Apartment markets are increasingly recording growth rates comparable to, and in some cases better than, houses.
But the surplus syndrome means buyers need to be choosy and do plenty of research into vacancy rates and building approval levels before committing.
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terryryder-YECXbqmri2

Units continue to challenge houses as the dwelling of choice

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The north shore commercial property market in Sydney is expected to be an investor favourite this year after stock shortages in 2013 and rising CBD prices, according to CBRE.
CBRE director, capital markets, institutional investments, Simon Kasprowicz, said that transactions would be strong this year, with strength being recorded in buyer enquiry levels.
Kasprowicz pointed to a ‘bottleneck’ of capital at the end of 2013, which he expects to translate into activity across the market.
“We expect to see further strong sales in 2014 on the back of some exceptional results in 2013 for A-Grade stock such as the transaction of Northpoint, 177 Pacific Highway and 168 Walker Street for $83.75 million in North Sydney,” he said.
Yields have, however, been compressing as a result of stock shortages and increased interest.
“The continuation of strong but scarce sales towards the end of 2013, coupled with higher levels of interest from buyers both established and new, is providing owners the opportunity to exit the market and capitalise on yield compressions,” he said.
While there are buyers across price ranges, there are three distinct groups.
1)      A-Grade assets with long Weight Average Lease Expiries and strong covenants
2)      Value-add opportunities with leasing risks and/or repositioning opportunities
3)      Residential development or redevelopment sites
 “In particular, there is strong overseas interest in the residential and redevelopment market, with these groups looking to convert commercial property to residential – further adding to the increased demand for office assets through the reduction of available fringe office space,” he said.
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jduke-EHk3XBmHkn

Commercial north Sydney stock to be investor favourite, even as yields soften

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When looking for your next property acquisition, it can be easy to get swept away in the romance of it all – even the most savvy investor has been known to crumble at a walk in robe with ensuite or herringbone parquetry floors.
But as every expert will tell you, when it comes to purchasing for investment, it’s all about the numbers.
Wilson Property Agent’s principal and director Adrian Wilson advocates considering a property’s per square metre value as a way of looking past the fancy trimmings and getting to the property’s true investment potential.
“While location and magnificent views are an important factor to consider when purchasing a
 property, there is also the consideration of dollars per square metre when searching for the right place,” said Wilson.
“One of the best acquisitions we have available for a discerning opportunist is a penthouse property located in <a href="https://www.realestate.com.au/property-apartment-nsw-sydney-116199963" target="_blank">‘The Bond’ on Hickson Road</a>, occupying some 539 square metres and listed for auction in the mid 3 millions.”
<img src="/images/image2.jpg" width="460" height="345">
“The value for money on this property is exceptional when you conduct a property comparison and calculate the dollars per square metre,” Wilson said. At a listing price of $3-3.5 million, the Hickson Road apartment’s value equates to around $7000 square metre.
“I have been unable to locate any comparable sales data that supports a dollar per square metre rate at less than $10,000 to $12,000 per square metre for this property, putting its worth at upward of $5.5 million – a rare opportunity for a high end purchase.”
The Hickson Road penthouse is opposite the <a href="/expert-insights/buying/barangaroos-first-publicly-advertised-property-sells-for-2-2-million-as-market-heats-up">Barangaroo development</a>, with views north of the headland park and out towards Goat Island on Sydney Harbour. At over $6 billion, Wilson says that Barangaroo is likely to be the largest infrastructure project Sydney will ever see.
According to Tolga Ozer, sales director at Wilson Property Agents, a recent sale he conducted in the Barangaroo development highlights the value of considering a property’s dollar per square metre value. Ozer sold and exchanged a two bedroom apartment in Barangaroo’s Alexander building for $2.2 million, directly across the road from the Hickson Street penthouse.
“This two bedroom apartment in the Alexander building is circa 113 square metres on level six, plus one car space and is due for completion in 2015,” said Ozer. He compares his recent sale with the penthouse on Hickson Street.
“When you compare a mid-level two-bedroom property, which achieved $19,469 per square metre against a luxury 539 square metre, four bedroom penthouse on Hickson Road, with three car spaces, going for around the $7000 per square metre mark, the opportunity and rarity of this investment is really put into perspective.”
Next time you’re attempting to compare your potential investment to similar sales, consider the dollar value per square metre metric. It can also be used to calculate a ceiling on what you’re willing to pay for your investment.
Other top tips for recognising a property’s true value, from the experts:
 
<ol>
<li>
<a href="/expert-insights/buying/a-quality-property-investment-is-not-dictated-by-prestige-or-price-but-by-growth-and-returns">Don't confuse "expensive" with "high quality"</a>. Capital growth potential is what counts.</li>
<li>
<a href="/news/vic/process-beats-intuition-when-buying-property-in-wake-of-autumn-auction-anxiety-mal-james">Follow a process, not your intuition</a>. For Mal James, the process is this: Clarity, assess-value, negotiate.</li>
<li>
<a href="/expert-insights/investing/a-couple-of-classic-first-time-investor-mistakes">Living in an area doesn't mean you know it's investment potential</a>. Familiarise yourself with the figures.</li>
</ol>
 
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jrichardson-uRX5hFdKfN

How to look beyond the surface to recognise a good investment opportunity

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For the first time in 35 years, a Hamilton Hill home in Brisbane is being offered up for auction this week, having last sold for $60,000 in 1979.
The property, <a href="https://www.eplace.com.au/property.cfm?propertyID=2536483&amp;realestate=24_Hillside_Crescent_Hamilton_QLD_4007" target="_blank">24 Hillside Crescent</a>, sits on 506 square metres with no sales prior to its last sale. The house, built in the mid-to-late 1930s by the Queensland timber merchant W.S. Brett was designed for the merchant himself. At the time, it was covered by The Courier-Mail as a significant property.
The three-bedroom, two-bathroom 80 year old home retains a number of its historical features, including leadlight awning doors, polished cedar timber floors and high decorative ceilings.
Marketing the home is Sherrie Storor of Place, who said that this was a rare opportunity.
“This house occupies an elevated position on Hamilton Hill and has a wide frontage with panoramic sweeps down both reaches of the Brisbane River and onto the city skyline,” said Storor.
“The home was designed to co-exist with its amazing position, with the floor plan oriented to take full advantage of the amazing Brisbane scenery from nearly every room.”
It has formal and informal living areas, patios, an in-ground Jacuzzi and a terrace.
It is looking for buyers who are open to restoring the home, with renovations required on the home.
“There is ample scope to renovate this home and restore its historic beauty while adding instant value,” she said.
There has already been substantial interest from buyers, and the expectation is for some fierce bidding later on today.
“We’re confident the property will sell – in fact, we are under instructions from the vendor that the property must be sold,” she said.
The auction will take place on Thursday at 6.30pm at the Place head office in East Brisbane.
RP Data's 'land value' section from June last year puts the price at $1,150,000.
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Historic Brisbane, Hamilton Hill home up for auction

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Many tenants and landlords choose to maintain a degree of respectful distance. Not Michael Bloxsom, who agreed to help out his landlord – who just happened to be a street level drug dealer.
The 36 year old Bloxsom, from Rockhampton, was arrested when his landlord, Stephen Dobbs, was targeted by the police for drug trafficking.
<a href="https://www.themorningbulletin.com.au/news/cannabis-by-phone-landlord-district-court-/2193320/" target="_blank">The Mornington Bulletin</a> reports that Dobbs was sentenced to four years and 10 months jail on drug trafficking charges on December 18 last year, to be suspended after eight months.
Bloxsom pleaded guilty to one count of trafficking cannabis in the Rockhampton District Court. The court heard that Bloxsom was involved in about 18 supplies of values between $360 and $1,800 as part of Dobbs’s seven month long business. According to Crown prosecutor Susan Hedge, Bloxsom’s transactions accounted for less than 1.6% of total turnover.
Bloxsom didn’t get paid for his work, but did receive some cannabis in exchange for his assistance.
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