The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

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>

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.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Beller Commercial

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Today we chat to an Apartments.com.au favourite in Beller's Fred Nucara. Fred discusses current commercial leasing trends, the 'MKR Effect', the impact UberEats and the like are having on food and beverage tenants, and how development can contribute to vacancies in the short term on high streets like Chapel Street.

Finally Fred gazes into his crystal ball to provide a forecast for the Melbourne market in 2019.

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Laurence Dragomir

Weekly Podcast - Episode 41: Beller's Fred Nucara talks commercial leasing

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A host of planned ‘new arrival’ developments in Chapel Street will help to revive the retail strip, according to Director of Beller Commercial, Fred Nucara.

Every year, Beller Commercial conducts retail strip research: a manual foot walk and count of shop vacancies. From this unique research, Beller has a clear view on the changing fortunes of Melbourne’s various “high streets”.

Chapel Street is divided into three precincts: South Yarra, Prahran and Windsor. Whilst Windsor is now a pumping food and hospitality destination, Prahran and South Yarra sadly present a different story with a record number of vacancies, 17 in South Yarra and 24 in Prahran.

Fred took time out of his schedule to have a chat with me via phone as we discussed some of the factors that are currently impacting the strip now and into the future. 

<blockquote>
Chapel Street is at the bottom of a bell curve at the moment. These major developments within the precinct are detracting from the usual vibrancy, because of the inconvenience, noise and distraction of the construction.

On a positive note, these major infrastructure investments are scheduled for completion in 2019 and 2020.

- Fred Nucara
</blockquote>

For more, listen below:

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Chapel Street Podcast: On the phone with Beller Commercial's Fred Nucara 

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Melbourne's iconic shopping and dinning precinct of Chapel Street's fortunes have fluctuated many a time.
And now is the time to buy, according to Beller Commercial director Fred Nucara.
Chapel Street (South Yarra, Prahran and Windsor) has a pipeline of development projects worth more $150 million, including hotels, schools and new civic amenities.
From an established, retail strip that traverses from high-end designer labels and international anchor tenants, to the slightly raffish retail strip of Windsor, where a new hip neighbourhood has emerged, there are currently 45 vacancies on Chapel Street.
"Now is the time to buy, buying during counter cycles when an area is perceived to be suffering often sees huge financial reward long term,” said Nucara.
Corelogic also noted earlier this year that Chapel Street commercial property sales increased in the three months to February.
The property data firm said that sales recorded in the quarter ending February 2017 totalled $26.6 million from nine sales, compared with $3 million from three sales in the three months to November 2016.
The popular Café Sienna on the corner of <a href="https://urban.melbourne/projects/stonnington/402-416-chapel-street-south-yarra" target="_blank">402 Chapel Street</a> above ( image courtesy Plus Architecture) is being redeveloped by Spotlight Property Group and will feature a mixed-use development of 87 apartments and a proposed 4.5-star Aloft hotel run by the Starwood group with 174 hotel rooms.
Further down and at 303 Chapel Street, behind Coles supermarket, The Cato Square Project is one of the largest and most ambitious construction projects ever delivered in the City of Stonnington.
The vast expanse of The Cato Street carpark that flanks two supermarkets will be undergoing a makeover to a new public meeting place called ‘Cato Square’.
This $60+ million transformation will become almost 10,000 sqm of multifunctional urban parkland with underground car parking tucked out of site.
When completed in 2019, Cato Square will provide urgently needed open space for passive recreation, events, festivals and markets.
Some 200 metres west of Chapel Street, a high school is under construction.
“The $25 million Prahran High School will have the capacity to enrol up to 650 students and will become a major educational destination for the area and added boon for the Stonnington community.
With the spate of infrastructure projects, Nucara advises that investors should not be too worried about present rents but consider the future land value.
“Too often buyers are influenced by short-term factors such as high vacancy rates, rather than adopting a long-term view for commercial property in designated proven shopping strips.”
The underlying land value will not depreciate, however, sometimes purchasers need to accept an investment return of 3-5% in the meantime, he added.
"History has proven that what you pay today, even if it is within a precinct with high vacancy rates at that time, has shown to be relatively cheap, as tomorrow is a different ball game” says Fred.
Recently, a tenanted commercial building at <a href="https://www.realcommercial.com.au/property-offices-vic-prahran-502364494" target="_blank">228-230 Chapel Street, Prahran</a> went under the hammer on May 18. It was sold for an undisclosed sum. Previously, the property traded for $1.7 million, according to Corelogic RP Data.
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j.ballantyne1990-6AQqhLzZaK

Now is the time to buy on Chapel Street: Beller Commercial's Fred Nucara

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<a href="http://www.bellergroup.com.au/">Beller Commercial</a> has just completed their first quarter shopping strip research for 2016 - a matrix of 28 key shopping strips that depict the number of shops, number of vacancies, average asking rent per square metre and yield. Beller Commercial Agents take to the streets quarterly and physically count the ‘for lease’ signs, vacant stores, check the web listings and do the arithmetic themselves. Apartments.com.au recently caught up with Beller Commercial director Fred Nucara, to discuss the research and the impact of residential development on these strips. Last year's corresponding article <a href="/news/bellers-2015-commercial-retail-research-results-are-in">is also available</a>.

According to Nucara, some of the traditional strips such as Bridge Road that have previously had a high degree of vacancy at around 40% at one point have begun to drop down significantly to around 20-25%. On the other hand Swan Street to the south is performing 'solidly,' underpinned by the former Dimmeys store redevelopment and incorporated Coles supermarket and apartments, in addition to the injection of new residents along the strip. Swan Street between Church and Punt Road is "a hive of activity" with a completely different vibrancy to the corresponding area along Bridge Road says Nucara. The vacancy along Swan Street is currently sitting at 5% following an uptake of 3 tenancies. 

The strips which have seen the biggest change in vacancy, in terms of tenancy uptake between April 2015 and December 2015 include High Street Prahran and Armadale which have had 17 vacancies taken up in a very short period. Nucara believes this is a result of the affordability factor where a lot owners of properties which were vacant in April 2015 have come to the realisation that it's better having a tenant in on a lower rent than no tenant at all. $55,000 - $75,000 per annum, says Nucara is generally considered affordable to most businesses and even start-ups. Beller have also observed this trend in places like Glenferrie Road Malvern, for example which has seen 12 shops leased in six months or around two a month, a solid success rate says Nucara and largely a result of affordability and the rejuvenation of Malvern Central Shopping Centre.

In terms of uptake there has been a real shift towards health and wellbeing in addition to the more traditional food and hospitality tenancies. According to Nucara this has been occurring within precincts that are within 5km of the Melbourne CBD and are seeing 4-5 level apartment developments go up along their main strips as residents are demanding more than just a wine bar or cafe at street level. This health and wellbeing sector is comprised of anything from physiotherapy to beauty salons to gym and yoga studios which the current apartment market projects are seeing more and more. 

<blockquote>
The health and wellbeing category is significant and we are receiving regular enquiry from massage therapists, nail technicians, hairdressers and general fitness operators. It is clearly no longer a case of lets build an apartment building and put a café on the street level, new neighbourhoods require services too.
<cite>Fred Nucara</cite>
</blockquote>

On the impact of residential developments such as Smith and Co. in Smith Street on the strip, Nucara says that the opening of the Coles along with new apartments has created further activity within the precinct. Vacancy along Smith Street has always been fairly consistent with around 10-12 properties vacant over a 2 year period having seen 15 vacancies in December 2013, and currently sitting at around 12  along what is considered to be a long strip of 253 shops. Nucara predicts that as the Coles development cements itself within the area and further residential developments are completed in neighbouring streets,that these vacancies will being to be taken up relatively quickly. The sight of cranes and construction activity provides businesses with the confidence to establish themselves in the area with the knowledge that the residential population will grow. 

The big surprise from Beller Commercials point of view says Nucara has been Toorak Road, South Yarra, which is "where Smith Street should be" in the coming years. The issue that Toorak Road traditionally had was that there were a number of major sites that never got off the ground but now are - the cranes are there and construction is underway. What this means for vacancies is that businesses revisit the strip with the knowledge and confidence that a significant number of residents will be moving into the area providing the street with continuity and good flow from a retail perspective as the shops are leased. A result of this is as the vacancy rates drop, rents begin to go up as competition for tenancies heats up. The strip saw 7 properties leased in 6 months, a big shift in a small time frame and traditionally Toorak Road has seen 10-12 vacancies with only 5 currently, all driven by the influx of apartment stock. 

An emerging trend is that shopping strips further out of the traditional 5km CBD radius are performing very well. These satellite villages are servicing well-established, affluent pockets demographic pockets. Also adding to the popularity of these strips are new medium, 4 – 5-storey apartment developments which are more prevalent in suburbs such as Glenferrie Road, Malvern, Whitehorse Road, Balwyn and Burwood Road, Hawthorn. Whitehorse Road currently only has one vacancy, making it the second best performing retail strip within Beller Commercials research area. As further development occurs in these areas and vacancies are taken up, rents will also be driven upwards. 

One strip that has struggled has been Fitzroy Street St Kilda with a 24% vacancy rate and which has struggled to shake off what might be considered a 'shady identity.' Nucara believes Fitzroy Street should have more appeal because it close to the beach and has a similar feel to Smith Street, Collingwood a few years ago.

<blockquote>
I like to think the future prospects are good (new apartment buildings arriving and the infamous Gatwick Hotel currently for sale). Given the length of the strip, it needs to be better facilitated by car parking. Also there are nearby competing areas, where the street vibe is more pleasant such as Albert Park, Middle Park and Acland Street.
<cite>Fred Nucara</cite>
</blockquote>

<h2>Beller Commercial’s top ten performing retail strips</h2>

<ol>
<li>Acland Street, St Kilda</li>
	<li>Whitehorse Road, Balwyn</li>
	<li>Toorak Road, South Yarra</li>
	<li>Centre Road, Bentleigh</li>
	<li>Glenferrie Road, Malvern</li>
	<li>Burwood Road, Hawthorn</li>
	<li>Carlisle Street, Balaclava</li>
	<li>Chapel Street, Windsor</li>
	<li>Toorak Village, Toorak</li>
	<li>Smith Street, Collingwood</li>
</ol>
Performance and ranking is based on a ‘consistency’ of low vacancy rates, rentals at maximum levels and diversity of retailers/services over multiple research walks.
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Discussing the Beller Commercial 2016 Shopping Strip Research with Fred Nucara

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Beller Commercial recently completed their annual Commercial Retail Research, a matrix of Melbourne’s notable shopping strips which judges their performance over the last year. A unique initiative spearheaded by Beller Commercial Director, Fred Nucara, the Commercial Retail Research report is a detailed run down of the fluctuating fortunes of Melbourne’s famously fickle retail high streets and their performance.

The information in the report is gathered by the Beller team, hitting the streets and literally pounding the pavement in order to converse with retail tenants. Apartments.com.au spoke to Fred Nucara about Beller's research process, the findings of the report and any trends that they have emerged during the period of the research.

Laurence Dragomir: Can you tell us a bit more about the report and the level of research your team undertakes to develop the report and why you do it?

Fred Nucara: Basically what happens is that my team will walk all the shopping strips on this matrix. There's a cross reference process in place; they verify what's available online such as properties for 'For Lease' and match that up with what can be see - are there boards or banners on properties? Are the properties vacant? Are they closing down and so on.

It's time and labour intensive but the results speak for themselves compared to some of the research that has come out from the major agencies in the city which is very much desktop. Not only do the teams want to educate themselves about what's happening on their strip, but we wanted to get a snapshot so that when we are talking to a potential client, if we have a property for lease or for sale we are able to give them real time information about what's going on on that particular strip. There's nothing like first hand knowledge.

We can give examples where say 9 months ago there were 15 vacancies and now there's 20 or now there's 10, and that tells us something. For both our clients interest and our own, it pays to get out there and provide the most up to date information possible.

LD: Each time you do research is it always the same set of shopping strips?

FN: It's the same list of streets that we visit and we don't deviate off that list. I think there's about 23-24 visited each survey and we break it up as there's always markets within markets. A prime example of this is Chapel Street, broken down over it's Windsor, Prahran and South Yarra sections.

LD: Was there anything in particular that surprised you or stood out since you last conducted the research?

FN: The latest round of research was done in April 2015 and before that it was last done during September last year. The big surprise has been that in Chapel Street, South Yarra there has been seven properties let.

In September of last year there were 27 vacancies and as a result there's now only 20, and while it's still an elevated vacancy rate there are signs of recovery. A quarter of the properties taken up in seven months is quite a result.

Another notable result is Swan Street in Richmond, falling from 20 vacancies in September down to 12, which again if you look at that ratio equates to a 40% drop in vacancies. That is actually a pretty decent success rate over a six to seven month period.

If you had to look at the three big results, Bay Street and Church Street in Brighton also fared well. We look at Bay and Church as combined strips in Brighton, so along with the Swan and Chapel strips they make up the three big performers or best improvers over the period. Whitehorse Road, Balwyn was probably another one that jumped out at us, moving from 11 vacancies down to just three.

LD: What do you put that improvement in the space of seven months down to?

FN: There are what we call some general overarching economic reasons as to why this increased level of activity has taken place. In this environment where business funding is pretty low, the confidence exists to borrow as a small business because funding is very cheap.

Alternatively some of these tenants and businesses are acting as owner-occupiers and buying the properties. What that does is it removes them from the tenancy market altogether because they want to become the owner of their freehold and run their business. The other thing too that happens is that landlords' expectations on rent begin to align more with what is considered a feasible proposition for a lot of small businesses.

What I mean by that is if you look at most of these strips, most of the rents will fall between $50,000-80,000 per annum, so there's this band where some rents begin to adjust and landlords begin to treat and transact, in other words the landlord that wants to get $90,000 p.a but is happy to keep cash flow at $80,000.

Even with all the evidence we've got which is shown to the landlord upfront, on occasion they may not accept the figures before them. They may believe their shop is worth $100,000 p.a but we think we're going to get around $70,000 and so often they need time in the market to experience that, and with our research and direct contact with offers from tenants then they begin to align their expectations.

LD: I suppose the one thing that really interests us here at Apartments.com.au is the impact of gentrification and new developments on these strips.

FN: That's a huge impact but it's more of a psychological impact, Laurence and I'll tell you what I mean by that. For example, if you have an area that has a lot of permits approved for apartment developments it is mooted that that area could become a really positive area in the future. But that doesn't necessarily mean it's an impetus for tenants to pick-up vacant space so what we tend to find is the impetus is actually when they start to see cranes and the construction coming out of the ground.

Good examples of this are areas like Collingwood, Fitzroy and Prahran. Cranes equal an increased local population and as a result of that it provides confidence to sign leases. What they're banking on is that they'll be able to attract the new residents across their front door; it creates this wave of activity that's much stronger in areas where they know there are cranes, properties and tenants ready to move in or residents ready to move in.

LD: On that basis do you think that Chapel Street, South Yarra has struggled somewhat because most of the new apartment development has been concentrated within the Forrest Hill precinct and further north along Chapel?

FN: Chapel Street, South Yarra has probably struggled for two reasons. I think one is definitely the concentration around Forest Hill and that has perhaps sapped a bit of the life out of Chapel Street to a degree, but Chapel Street has always commanded premium rents. What's happened there is because it's such a long strip the rents have gotten to a level now where some of these national businesses can barely afford and be profitable, but they do it to have a presence on Chapel Street.

So what you're probably seeing is it's suffered from the rents being traditionally high and it's hard to sustain those rates per sqm in those locations, particularly when you've got Emporium or an expanded Chadstone sucking a portion of the customer base away from Chapel Street, South Yarra. That means less customers through South Yarra, which is quite different to Chapel Street, Windsor by the way - very, very different demographics - so the customers are going and spending there money elsewhere, consequently placing pressure on businesses to pay their rental rate.

LD: Thank you for your time Fred.
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Beller's 2015 Commercial Retail Research results are in

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As one of Melbourne's largest independent real estate agencies with over 50 years experience, Beller Group has a fundamental understanding of the current Melbourne apartment market and the nuances which influence it. By way of establishing Beller China and forging an alliance with Beijing-based property agency giant Sagacity, Beller Group have gained an intimate, market-leading understanding of the factors behind the unprecedented rush of Chinese property buyers into the Melbourne market in recent years.

Days after arriving back from a Chinese sojourn, Apartments.com.au sat down with Beller Group Director Andrew Fawell to learn his thoughts relating the wave of Chinese investors seeking their slice of the Melbourne market.

<h2>The Chinese perspective</h2>

To understand the Chinese property buyers attitude toward Melbourne at the moment requires a basic understanding of Chinese domestic affairs. Andrew believes the burgeoning middle class have never before had so many sources of information in order to make considered decisions, thus many Chinese nationals are now taking steps to secure their wealth and long term prosperity.

With the backdrop of China's economy slowing and a shifting political paradigm, middle class Chinese are investing overseas in record numbers - an exodus of wealth as a precursor to potentially leaving themselves. Property is considered a safer, secure method of parking wealth given the Chinese maintain a general aversion to shareholding.

Asked to further elaborate, Andrew stated that whether it materialises or not there is a growing perception amongst Chinese that their economy is susceptible to collapse, and as such those in a position to do so have sought out the safety of markets such as Melbourne in which to park their wealth. With Melbourne's solid fundamentals, excellent quality of life and strong political foundation, it's seen as a prime destination for Chinese.

Base upon first hand experience through Beller China, Andrew also emphasises the ostentatious nature of middle class Chinese who delve into offshore property purchases. A strong number of buyers into markets such as Melbourne are not particularly bothered about a given property's value or it's ongoing capital gain, but rather they want to be seen to be doing something.

This in part has given rise to the "Fly to buy" element of the market as they have been christened. Somewhat incredulously Andrew reeled off numerous instances where Chinese nationals have flown into Melbourne for the sole purpose of purchasing single/multiple apartments, only to leave immediately thereafter.

<h2>The importance of relationships in China</h2>

<blockquote>
We are delighted to announce the new partnership with Sagacity China. Not only will this facilitate introductions to new markets in China, but also importantly, we will be able to facilitate deals with major Chinese developers to buy development sites in Melbourne. Like any good relationship, it will be a two way conversation and one of mutual benefit.
<cite>Andrew Fawell</cite>
</blockquote>

Official PR statements aside, Andrew believes the key to the above comment is the penetration of new Chinese markets. Evidently the current crop of buyers reside in primary or first tier Chinese cities such as Shanghai oe Beijing. As buyer experience and information flow heightens, the buyers sophistication naturally increases.

To that end Beller Group are of the opinion that should the initial wave of first tier Chinese buyers double dip into the Melbourne property market, they will most likely avoid the masses of apartments on offer in Melbourne's CBD next time around and exercise a level of knowledge by purchasing in smaller developments beyond the CBD.

Paraphrasing Andrew Fawell, the initial wave of buyers content to buy into large developments within Melbourne's CBD will dissipate, in turn replaced by a new wave of Chinese buyers from second tier cities who are just now delving into offshore property purchases without the same benefit of hindsight as the initial tranche. Put into perspective those second tier cities such as Tianjin, Chengdu and Changsa and Qindao have metropolitan populations averaging over 10 million which enforces the theory that Chinese investment into Melbourne property and principally apartments will only balloon further.

<h2>The Melbourne perspective</h2>

The vexed question of the current state of the Melbourne property market has been a hot topic in recent weeks. Andrew Fawell considers the Chinese influence on the local apartment market a game changer where fundamentals have been altered, effectively covering some of the market deficiencies that have arisen in recent times.

At this point Melbourne has moved into the top handful of cities preferred by Chinese property investors, usurping Vancouver whose market was stymied by Government intervention. Asked of the prospect of Government responding with similar measures here Andrew suggested that if the current situation is allowed to run unchecked, the specter of such a move would increase.

Andrew Fawell also raised the notion of a two-paced local property market with pitfalls for the unsuspecting investor, whether they be local or international. Certainly in some areas of Melbourne there remains strong buyer and rental demand for smaller, well positioned, higher quality apartment projects, whilst a looming glut of rental stock in and around the CBD may cause havoc even though the demand to buy particularly from offshore parties will remain robust.

Interesting times ahead!
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