A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Joel Robinson

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

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.

<iframe allow="autoplay" frameborder="no" height="166" scrolling="no" src="https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/536078538&amp;color=%23ff5500&amp;auto_play=true&amp;hide_related=false&amp;show_comments=true&amp;show_user=true&amp;show_reposts=false&amp;show_teaser=true" width="100%"></iframe>
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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:

<iframe allow="autoplay" frameborder="no" height="300" scrolling="no" src="https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/445161288&amp;color=%23ff5500&amp;auto_play=false&amp;hide_related=false&amp;show_comments=true&amp;show_user=true&amp;show_reposts=false&amp;show_teaser=true&amp;visual=true" width="100%"></iframe>
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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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