<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

Beller Group

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Two of the most established companies in Victorian real estate, Buxton and Beller, have announced they will be joining forces.
From July 1 they will form a partnership under the Buxton brand.
Beller currently manage over $1.5 billion in residential property. Their team of more than 20 agents and support staff will continue to service their clients.
Founded in 1994, the Beller Group’s Windsor office, led by Beller Group Director Andrew Fawell, will now become Buxton Stonnington, bringing the company to a total of 24 offices across the state.
“For me, it was a matter of future proofing and evolving the business; doing what’s best for our people and the company," Fawell said.
"What I admire most is Buxton’s innate ability to attract incredibly talented people to the business, which is vital to a brand’s longevity.
“Buxton has such a deep heritage with over 150 years in Melbourne’s real estate market.
"There is a lot of value in a company that has been through a significant number of property cycles. 
"Comparably, we have 25 years of history so joining forces makes sense strategically,” Fawell added.
Buxton CEO Nathan Jones said he was excited about the partnership and the acquisition of such experienced and quality operators into the group.
“Buxton is really well placed to continue increasing its market share in Stonnington," Jones said.
"We have historically dominated Melbourne’s Bayside and South East, and we’ve now taken strong leadership positions in Greater Geelong and Ballarat whilst having a growing presence in Melbourne’s Eastern suburbs.
“The Beller Group is one of Victoria’s largest independently owned residential businesses in the industry. This collaboration, although borne out of opportunity, will allow us to extend our focus into the key blue chip suburbs within Stonnington.
“As our network strengthens year on year, we are spending more time developing strategies to improve customer acquisition and advocacy, and this move was certainly a major part of our focus,” said Nathan.
Beller Project Marketing will also become Projects by Buxton and the third arm of Beller Group, Beller Commercial, is currently launching a new independent brand and will continue to operate from its office in Prahran.
 
 
 
 
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j.ballantyne1990-6AQqhLzZaK

Buxton & Beller join forces to form Victorian real estate powerhouse

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No doubt about it, the emerging build-to-rent model has the property media in a tizz at the moment. What may in part become a solution to the housing and rental affordability dilemma has garnered immense media attention of late.

The Australian Financial Review has referred to it as a <a href="http://www.afr.com/real-estate/it-could-be-a-game-changer-odds-increase-for-buildtorent-sector-20170825-gy4b8e">game changer</a>, <a href="http://www.afr.com/real-estate/build-to-rent-a-key-for-australian-housing-affordability-20170830-gy6y2x">a key for Australian housing affordability</a> and a <a href="http://www.afr.com/real-estate/residential/buildtorent-great-for-big-investors-good-for-overpriced-cities-20170831-gy89xv">boon for property industry big investors</a>.

Whilst the new model of project delivery holds great appeal, a spanner in the works may have emerged with <a href="http://www.theaustralian.com.au/business/property/buildtorent-rules-challenged/news-story/72a8b19e6b358d2461e63c472b45315b">The Australian last week noting</a> that "tough new rules on Australia’s nascent build-to-rent sector proposed by the federal government could restrict investment in the area and crimp the asset class that has the potential to relieve pressure on the housing sector."

Below is a succinct overview of the Build to Rent model as per the Informa Australia website, with the forthcoming <a href="https://www.informa.com.au/event/build-rent-forum/">Build-to-Rent Forum</a> to be held in Sydney on 30 October 2017. 

<h2>Build-to-rent explained</h2>

<ul>
<li>Build-to-rent (also known as Multi-Family Occupancy) is a new housing model that could be the solution for the affordability crisis in Australia’s metropolitan areas. </li>
	<li>Build-to-rent allows companies that construct residential housing (usually apartment blocks) to retain ownership of them, once built.</li>
	<li>Build-to-rent looks to change this attitude, by allowing the developer/construction company to retain ownership of their building and become the landlord.</li>
	<li>The developer or construction company will offer 5-10 year leases to young families.</li>
	<li>Lengthy nature of leases on offer allows for lower rental prices.</li>
	<li>It is believed to be a win/win for developers and renters and would offer a viable option for those looking to live in the expensive Sydney and Melbourne regions.</li>
	<li>There is an opportunity for build-to-rent/multi-family occupancy to be considered an asset class and therefore affect the Australian economy even more directly and involved both state and commonwealth governments.</li>
</ul>
<h2>Andrew Fawell at the coal face</h2>

At the forefront of discussions on the model is Andrew Fawell, Group Director at Beller Property Group. Apartments.com.au recently chatted with Andrew on all things build-to-rent.

Build-to-rent is not necessarily new to Melbourne. Mid-sized property player B Central Development Group is across the model, last year completing 405 St Kilda Road which is 100% retained by the developer, whilst Ciel on Centre Road Bentleigh will also contain a build-to-rent aspect with 20% retained by B Central Development Group as long-term rental stock. 

In addition to managing the above projects, Andrew Fawell also notes that Armadale will also host a similar build-to-rent development located at 737-739 High Street.

Why the model has stirred interest is the emerging scaleability and subsequent viability for the larger players within the property industry. Salta has garnered much attention for their mixed-use Docklands tower which includes a build-to-rent component, with players such as Mirvac, Cbus Property and Lendlease all weighing into the discussion prior to advancing any projects.

What shape and scale the build-to-rent sector takes heavily relies upon the role of Government. Andrew Fawell suggests incentives from a Government level are required to bring on the build-to-rent sector, contrary to the <a href="http://www.theaustralian.com.au/business/property/buildtorent-rules-challenged/news-story/72a8b19e6b358d2461e63c472b45315b">reported planned measures taken by Treasurer Scott Morrison</a> to restrict for global investment in the sector.

Also on Andrew Fawell's mind is the role of Australia's banks, suggesting that as long as banks comprehensively control the financial strings, there will be no immediate and easy solution to Australia's affordability issue. Thus how to commercialise the build-to-rent model to a point where it reaches critical mass and affords players the adequate degree of return for their investment is the pressing question.

Hence the increasing number of property industry-focused seminars and forums to devise a cohesive approach to what looms as a new paradigm for affordable housing.

Above all Andrew Fawell stresses the need for certainty in policies and structures formulated to aid the emergence of the build-to-rent sector. 
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silvermb

The hot topic: Beller's Andrew Fawell on the intricacies of the Build-to-rent model

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Urban.com.au recently sat down with <a href="http://www.bellergroup.com.au/">Beller</a> Director, Andrew Fawell to discuss the state of play of the residential property market during spring. Andrew reignited the Beller name as the Director and Owner of the business in 1994 and set about growing and further developing the Beller brand. His insight and understanding of the property market and Beller's client base has seen the business develop into the multi-faceted inner-city real estate agency adding commercial and project marketing businesses.

A range of topics were discussed delving into current housing trends and the impact on Australian residential development from off-shore investors, namely from China. A slowdown in the apartment market that has been fuelled by investment from Chinese investors has been widely tipped with the market currently considered saturated. Despite this housing remains in strong demand overall and according to Andrew a major driving force is low-interest rates which he expects will see further reductions in 2016.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/uws_m1.jpg" rel="gallery-all" title="Apartments developments continue to rise at pace. "><img alt="" class="image-article-full-width-580px" height="387" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/uws_m1.jpg?itok=XH2ePB4z" title="Apartments developments continue to rise at pace. " width="580"></a>

<figcaption>Apartments developments continue to rise at pace.</figcaption></figure>While a slowdown in the market appears on the cards, off shore investment particularly for off the plan housing stock remains strong. The latest fad for off shore investment says Andrew, is house and land with developers already looking to take advantage of this shift. Likewise townhouses are increasingly growing in popularity as they offer long term security to investors given the lower level of supply and are sought after in well-established inner ring suburbs. And despite oversupply affecting main road properties, the benefit is that there's now more choice on the backstreets. Unique well located properties are still very much in demand, however the absence of balconies or lack of private open space is generally considered a deal breaker to achieve optimum sale prices.

Buyers who have a family with children still in school are also prepared to pay more in established suburbs away from the city such as McKinnon, for example due to its high number of well recognised schools but without the school fees of the private schools. Buying in what is considered to be a 'location' suburb that isn't Toorak or Kew is possible largely due to savings that can be made on private school fees; these funds can then be redirected towards the servicing of a mortgage for a property as well as not paying someone else rent. When the children’s education is completed, they then sell and hope to realise a capital gain.

Empty nesters looking to downsize have also been prominent players in the owner occupier market, selling their free hold properties and buying in areas such as Hawksburn Village, largely because they are attracted to the lifestyle associated with those areas; they are considered places with life. "Everyone wants lifestyle aspects" says Andrew. As a result these areas also tend to yield bigger apartments than those within the CBD and Southbank that are targeted towards the investor market.

On the impact that the new residential zones are having on development, Andrew says the introduction of the zones has meant many owners are now looking at holding on to properties as they are no longer feasible to develop. The introduction of other controls may result in the adaptive re-use of existing commercial stock such as the office buildings on St Kilda Rd which has been very strategic with developments such as Fawkner on The Park and the former St Kilda Rd Police complex looking to take advantage of the panoramic views their respective locations afford. 

Andrew notes that more recently a number of properties that Beller clients have, are now being developed with a build and hold mentality in what Andrew terms "smart futures for smart money". Clients realise that they can sell for a solid price now but don’t know where to invest the proceeds. So what could be better than reinvesting in the existing asset that has already been performing well for you. There are a number of benefits he says, firstly after 5 years there's no GST applied to any sale. If the property or properties are held for 10 years there are significant depreciation benefits and the properties will see rental growth once initial oversupply is over not to mention potential capital growth. Additionally, there is also the long term ability to subdivide the asset and spread the risk and get the banks claws out of you.

Andrew's parting words to those looking to invest in property are "Don't just read headlines know the market." He says there's a big difference between simply being a spreadsheet developer/investor vs being someone who is much more plugged in and understands the market. According to Andrew if there's no clear strategy it is often better to hold onto the property and get returns as opposed to selling the property and leaving the money sitting in the bank. "Keep it simple," says Andrew "Wherever you buy make sure you're happy to be a long term landlord if the market changes."
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Laurence Dragomir

Beller's Andrew Fawell on the Spring property market and prevailing trends

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As far back as Spring 2014 Beller Property Group director Andrew Fawell was noting a confluence of factors which has led the Melbourne property sector into a 'perfect storm.'

<blockquote>
The market in every property sector that we are involved in is firing on all cylinders at the moment. With historical low interest rates, this has compressed yields on all investment property both residential and commercial. This in turn has bolstered the markets appetite for risk and people are quite prepared to take on greater debt levels and lock in on low rates, given the low term deposit rates on offer.

All of our divisions have seen the continued heat being applied from the Asian market and, more specifically, from the Chinese market. This has added another layer of complexity to the Melbourne marketplace unseen before.
<cite>Andrew Fawell, Beller newsletter, Spring 2014</cite>
</blockquote>

With the above in mind Apartments.com.au sat down with Andrew Fawell, Beller Commercial director Fred Nucara and Beller Residential Sales Manager Robert German to gain a collective impression of where Beller see the market both now and into the future.

<h2>The current market</h2>

Since Andrew Fawell's comments last year, the Beller team believe the above factors have compounded further, causing the "Stars to align across all sectors." Be it buyers, sellers or renters across residential or commercial, active participants have it very good on all fronts.

In a macro sense, global investment yields are flat, prompting many investors to seek safehavens such as property. Describing banks as "going backwards" in the returns they can offer, the robust Melbourne property price increases, particularly in detached dwellings, are a tasty investment for overseas and domestic investors.

Tied in with this trend is the fall in the AUD which Beller believes is at an ideal level to keep the market churning.

Overall Beller see the market as highly dynamic. Fred Nucara states that data collected six months ago often has little relevance to that which is occurring now, pointing toward the need to pound the pavement in order to get a feel for current conditions and sentiment.

<h2>Buyers and sellers</h2>

Speaking of the current vendor market, Robert German describes the relationship where confidence in the market is relative to greed. That is, prospective vendors view the lofty results achieved on certain properties (land development sites or private housing) and assume that they will attain the same outcome. At this point the lure of increased returns may well blind reality, leading to unattainable expectations bolstered by a sometimes misplaced confidence gained from a robust market.

Heavily influenced by overseas buyers, the Melbourne apartment market is viewed by Beller as a unique beast with its own set of challenges and opportunities. Described as patchy by the Beller team, it is at the moment a suburb by suburb prospect with middle ring suburbs in favour.

Given the enormous mass of apartments currently under construction in Melbourne's CBD, Andrew Fawell believes that apartments buyers can still achieve value for money purchases away from inner Melbourne on the proviso that they place emphasis on location, amenity and transport. Further to this Beller expects to see an increased divergence of Asian-based property developers away from Melbourne's CBD and into smaller-scale, high quality suburban apartment developments.

On the rental front, renters will continue to enjoy the continuous flow of newly completed apartments into the market, particularly throughout inner Melbourne. This will serve to suppress sizeable rental increases for the time being.

<h2>The seven year itch</h2>

Empirical evidence would suggest that Melbourne's 7-8 year development cycle is due to make itself felt in the not-too-distant future. From the cooling-off that occurred during the early 2000's post the apartment sales boom capped off by Eureka Tower, to the Lehman Brothers event of 2008 and its flow-on effects, Beller subscribe to the theory that an 'event' is due which will alter the current market dynamic.

Noting that all good things must come to an end, Fred Nucara spoke of the necessity for potential property buyers and sellers not to dismiss or ignore the property cycle, as change is inevitable. Quizzed on what likely event would trigger a 'black swan moment', a range of smiles and multiple machination were on show. Million-dollar questions aside, the Beller team talk of a unpredicted event that will trigger a domino effect that will sent market fundamentals into a spin.

So what does this all mean in the eyes of Beller Property Group?

<h2>Decision time</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/cycle-clock-web.gif" rel="gallery-all" title="The cycle clock. Image courtesy Quartile"><img alt="" class="image-article-full-width-580px" height="300" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/cycle-clock-web.gif?itok=h8ssUXvx" title="The cycle clock. Image courtesy Quartile" width="580"></a>

<figcaption>The cycle clock. Image courtesy Quartile</figcaption></figure>Once more emphasising that change is inevitable, Beller Group are urging their existing and potential customers to act now rather than hold out in the hope of greater returns. In their belief, change to the current market dynamic is nigh, and that the 'prefect storm' of conditions that are in place currently cannot last.

Asked as to whether this is a self-serving argument in which they stand to gain, the team answered that is may sound like the case but historically the 'unseen event' is due which will disappoint those intended property participants who remain inactive in the short to medium term.

Paraphrasing Andrew Fawell in summing-up the discussion; the current strong market is the time to transact - if you're able to do so, don't hold back!

Lead image courtesy wowplanetearth.com.
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