National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more internation and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

Joel Robinson

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

<section data-scroll-anchor="false" data-testid="conversation-turn-5" data-turn="user" data-turn-id="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" data-turn-id-container="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" dir="auto">Time &amp; Place’s plans to transform the former David Jones factory building in Surry Hills into a mixed-use residential precinct have gone on exhibition through the NSW Government’s In-fill Affordable Housing pathway.</section>

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" data-turn-id-container="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" dir="auto">
The Marlborough House proposal, lodged for the <a href="https://www.apartments.com.au/new-apartments/marlborough-house-47-97-marlborough-street-surry-hills-nsw-2010">47-97 Marlborough Street</a> site, would see the adaptive reuse of the heritage-listed warehouse building alongside the construction of new residential additions and a separate apartment building on the northern portion of the site.

The proposal seeks approval for 172 apartments across three buildings, including 15 per cent affordable housing managed by a community housing provider for at least 15 years from occupation.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="5d1d3c2a-bf13-47d6-a335-7c01102cdee1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.36%E2%80%AFAM.png?VersionId=cjMYrbR.BLUlWH4dar0RVDDo0bG.u2YT" />

Interior view from the Northern Building Penthouse overlooking the park

&nbsp;

The redevelopment is planned for the prominent 3,413 sqm site bounded by Marlborough Street, Goodlet Street and Lansdowne Street, directly opposite Eddie Ward Park and around 200 metres from the Surry Hills light rail stop.

Time &amp; Place acquired the former David Jones building in 2024, marking the first time the property had changed hands in around 50 years.

Designed by Wardle, the proposal centres around the adaptive reuse of the former David Jones factory, originally constructed between 1913 and 1935 in the Inter-War Chicagoesque architectural style.

Wardle noted in its Architectural Design Report that the building “occupies a significant place in the industrial and cultural history of Surry Hills” and at its peak was “the largest department store manufacturing facility in Australia, employing over 800 people and fuelling the growth of Sydney’s fashion and retail industries.”

The practice said the project positions itself “not as an isolated intervention, but as a contributor to the civic, social, and architectural grain of the precinct.”

The proposal would deliver 75 apartments within the retained southern heritage building, 59 apartments within the central addition, and a further 38 apartments within the new northern building fronting Lansdowne Street.

Planning documents show the scheme would comprise a mix of heritage apartments, new-build apartments, townhouses and penthouses.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="57758518-40a3-4b83-958c-d06e96a2cffa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.42%E2%80%AFAM.png?VersionId=VerlX9ST5xgBi8.1_YRsqdWTJeT6ygjs" />Interior View of the Heritage Building Apartment

The development would also include a ground-floor retail tenancy on the corner of Marlborough and Lansdowne streets, rooftop communal open space, a landscaped pedestrian link along the western edge of the site, and basement parking accessed from Lansdowne Street via a car stacker system.

&nbsp;

The scheme emerged from a competitive design process run by Urbis, with Wardle ultimately selected as the winning architect ahead of FJC Studio, TZG, Architectus and Wilkinson Eyre.

The Design Integrity Panel later described several aspects of the Wardle scheme as fundamental to the project, including “the stepped character of the new addition to the north of the site”, the landscaped western pedestrian link, and the “garden arrival” experience separating the original Marlborough House from the heritage addition.

Wardle’s design heavily references the site’s industrial and heritage history, while also responding to the surrounding Surry Hills streetscape.

The Architectural Design Report describes Surry Hills as “a finely grained neighbourhood with beautiful and expressive brickworks throughout the suburb,” with the proposal introducing a material palette intended to sit comfortably alongside the existing warehouse fabric and neighbouring terraces.

The report also outlines the project’s relationship with Eddie Ward Park and the broader landscape context of the area.

“Marlborough House occupies a site of deep cultural memory and the neighbouring Eddie Ward Park is of local ecological significance, where natural systems, topography, and stories have long shaped human experience,” Wardle noted in the report.

The architects said the proposal sought to “rebind built form to Country” through landscape, materiality and the adaptive reuse of the heritage structure.

<img alt="Marlborough House" data-entity-type="file" data-entity-uuid="9ae3f2f9-c85f-477a-a6f8-b43f6cb97c41" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.53%E2%80%AFAM.png?VersionId=B.qUCLqRvJOR.n9CvYcTpaknIX9LuqKZ" />

The project is also being progressed under the NSW Government’s in-fill affordable housing provisions, allowing developments that include affordable housing to access additional height and floor space incentives.

Under the plans, 2,593 sqm of the project’s floor space would be dedicated to affordable housing, slightly exceeding the required 15 per cent threshold.

In its Design Excellence Strategy, Urbis said the project aimed to “sensitively adapt and enhance the heritage-listed building on site through alterations and additions that preserve its historical significance” while delivering “high-quality market and infill affordable housing development in Surry Hills.”

Time &amp; Place has been one of the most active developers nationally in the last 12 to 24 months. Late last year they completed&nbsp;The Queensbridge in&nbsp;<a href="https://www.apartments.com.au/developments/southbank-vic-3006">Southbank</a>, a mixed-use tower with 353 apartments and a hotel. They are currently selling Park Modern, 246 apartments near the famous Botanic Gardens in&nbsp;<a href="https://www.apartments.com.au/developments/south-melbourne-vic-3205">South Melbourne</a>, and have future projects, <a href="https://www.apartments.com.au/new-apartments/the-wilmot-173-burke-road-28-hope-street-glen-iris-vic-3146">The Wilmot</a>&nbsp;in&nbsp;<a href="https://www.apartments.com.au/new-apartments/glen-iris-vic-3146">Glen Iris</a>, the redevelopment of the Northcote Plaza, and another tower in South Melbourne.

The developer broke into Sydney just a few years ago with Two Tides in Manly. They have another project nearby, which is at the ultra-luxury end of the market on&nbsp;<a href="https://www.apartments.com.au/buildings/shoreline-manly-beach-89-90-north-steyne-manly">North Steyne</a>, fronting the beach.

It is also continuing to work through the <a href="https://www.apartments.com.au/news/nsw/first-look-time-place-settles-on-design-for-the-chimes-potts-point-redevelopment">redevelopment of The Chimes building</a> on Macleay Street in&nbsp;<a href="https://www.apartments.com.au/developments/potts-point-nsw-2011">Potts Point</a>, as well as a project on <a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Mosman's Redan Street</a>.
</section>

First look: Time & Place unveils Marlborough House redevelopment designs for former David Jones warehouse in Surry Hills

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.

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

Melbourne

<html><body>
Construction on the Botanica Apartments within Banbury Village is scheduled to commence in the middle of this year, with completion expected by mid-late 2016.
Banbury Village is being developed by Cedar Woods as a $200 million urban renewal project on the former Olympic Tyre Factory site at Footscary West.
It's been billed as the southern hemisphere’s first US-college style education campus village to service two Victoria University Footscray campuses.
Banbury Village will have a mix of academic, social, community and retail facilities, along with around 430 homes.
<img src="/images/2015/02/11/banbury-feb-11-two.jpg" alt="">
As part of the rejuvenation aim of the Victorian Liberal government’s ‘Plan Melbourne’ city plan, the region has the fastest growing population areas in Australia, with Victoria’s former Minister for Planning, Matthew Guy, anticipating the City of Maribyrnong will grow by 42,000 people over the next 15 years.
Some 60% of those moving into Footscray are aged between 20-34, according to a report released by Urbis, which also speculated that this growth would require an additional 130,000 dwellings.
“Banbury Village is a community-defining project,” said Cedar Woods’ Victorian State Manager, Nathan Blackburne.
Botanica, the final stage of the residential development, has been designed by ROTHELOWMAN to appeal to Footscray’s younger demographic and high proportion of young professionals and students.
Offering one and two bedrooms, prices start at $305,000.
All apartments feature NBN-ready connections.
Less than a quarter of apartments remaining in the final release of the $200 million Banbury Village project, which has played a pivotal role in the renaissance of Footscray.
“Footscray’s rising popularity and proximity to the CBD has seen it competing with traditionally trendy Melbourne hotspots such as St Kilda, Richmond, Northcote and Carlton,” Blackburne said.
“Dwellings in the project have seen good price growth and we expect the same to occur for this final release.”
</body></html>

jchancellor-FAypfDUnLy

Botanica, the final rejuvenation project of Footscray's Banbury Village 

<html><body>
Not The Block again hopefully!
An investor has paid $2,735,000, on a sharp 3.62% yield, for a fully leased, four level, apartment block at South Yarra in Melbourne’s inner east.
It was sold by Savills Australia.
There were six bidders for the 6-8 Mona Place property.
It comprises a strata-titled block of six, one bedroom, 62 to 68 square metre, apartments on a 323 square metre site zoned General Residential.
The property was sold fully leased to six tenants at a combined rental of $99,072 per annum. Rents for one bedders sit around $330 a week, having been at $130 a week in the mid-1990s.
Jesse Radisich said the marketing campaign had attracted more than 150 enquiries from potential purchasers and 30 personal inspections from local and off-shore investors and self-managed super funds.
There has been a <a href="/expert-insights/building/sydney-audiences-shun-the-blocks-lengthening-melbourne-residency">marked deterioration in Sydney metro viewers</a> for the latest series of The Block. Let's just hope this purchase isn't a continuation of the show's lengthening Melbourne residency. 
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Six compete for South Yarra strata apartment block sold on 3.6% yield

<html><body><div class="wysiwyg">
Melbourne's median house price hit $669,000, up 5% on the September quarter after price increases in inner, middle and outer suburbs, according to the latest REIV quarterly results.
"Inner Melbourne increased by 11.7% for the year with middle Melbourne up by 13.2% and outer Melbourne at 8.9%," REIV Chief Executive Officer Enzo Raimondo said today.
Overall Melbourne house prices were up 11.7% compared with 2013.
The December quarter median house price in regional Victoria was at new records too, at $344,000, up 5.5% on September.
December Quarter 2014 Median Prices 
<table border="1" cellpadding="0"><tbody>
<tr>
<td valign="top">
Metro Melbourne
</td>
<td valign="top">
Dec-14 Quarter
</td>
<td valign="top">
Quarterly change
</td>
<td valign="top">
Sep-14 Quarter
</td>
<td valign="top">
Annual change
</td>
</tr>
<tr>
<td>
House
</td>
<td valign="top">
$669,000
</td>
<td valign="top">
5.3%
</td>
<td valign="top">
$635,000
</td>
<td valign="top">
11.7%
</td>
</tr>
<tr>
<td valign="top">
Unit
</td>
<td>
$511,500
</td>
<td>
1.6%
</td>
<td>
$503,500
</td>
<td>
5.7%
</td>
</tr>
</tbody></table>
Source: REIV
<table border="1" cellpadding="0"><tbody>
<tr>
<td valign="top">
Regional Victoria
</td>
<td valign="top">
Dec-14 Quarter
</td>
<td valign="top">
Quarterly change
</td>
<td valign="top">
Sep-14 Quarter
</td>
<td valign="top">
Annual change
</td>
</tr>
<tr>
<td>
House
</td>
<td valign="top">
$344,000
</td>
<td valign="top">
5.5%
</td>
<td valign="top">
$326,000
</td>
<td valign="top">
5.8%
</td>
</tr>
<tr>
<td valign="top">
Unit
</td>
<td>
$257,000
</td>
<td>
4.0%
</td>
<td>
$247,000
</td>
<td>
3.0%
</td>
</tr>
</tbody></table>
Source: REIV
This graph shows median house and unit prices in Melbourne over the past decade in seasonally adjusted terms.
Median prices over time 
 <a href="https://www.reiv.com.au/Property-Research/~/media/Files/Median%20Prices/2014%20Q4%20Dec/Chart_Dec14medians_300115.ashx"><img src="https://www.reiv.com.au/Property-Research/~/media/Files/Median%20Prices/2014%20Q4%20Dec/Chart_Dec14medians_300115.ashx?h=353&amp;w=599&amp;as=1" alt="" width="599" height="353"></a>
<a href="https://www.reiv.com.au/Property-Research/Median-Prices" target="_blank">Search your own suburb median</a>.
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Melbourne house median hits record $669,000: REIV

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Residential dwelling values in Melbourne returned to trend in January with a 2.7% rise recorded by CoreLogic RP Data in the latest home value indices results.
This sets the Melbourne property market up for another stable year with moderate value increases likely, particularly in the detached house market. Melbourne home owners have seen stable growth in values for two years now and are more likely to record a profit when selling now.
House values in the city grew the strongest with a 2.8% rise compared to 1.7% for units. This takes the growth in values over 12 months to 7.5% for houses and 2.7% for units.
The rise in property values will be welcomed by vendors seeking to sell over the summer and in autumn as it suggests the poorer performance recorded in November and December last year was a consequence of high supply levels in spring and summer.
Demand is not limitless and there is still some caution from buyers.
Based on settled sales the median price of a house in the past three months was $613,000 and $480,000 for a unit.
The performance of the auction market provides little indication of the markets health due to the very low auction numbers in January and their geographic diversity. Volumes are likely to rise strongly over the next few weeks.
Melbourne continues to have the lowest rental yields in Australia with 3.2% for houses and 4.2% for units. This does not appear to have a negative impact on investors who are happy to wait for capital gains.
Melbourne’s ‘Mega suburbs’!
<ul>
<li>Reservoir is the largest suburb in Melbourne</li>
<li>Gilderoy is the smallest suburb in Melbourne</li>
<li>The are 12 suburbs in Melbourne with over 10,000 houses</li>
</ul>
<a href="https://blog.corelogic.com.au/wp-content/uploads/2015/01/glen-waverley-railway-station-300x199.jpg"></a>Most weeks when the highest volume of auctions are listed, the suburbs of Reservoir, Glen Waverly and Mount Waverly come out near the top.
Auctions may well be a popular method of sale in these suburbs but their appearance in the list is more likely due to the fact that they are three of Melbourne’s largest areas.
Melbourne’s progressive growth over the past 180 years has seen suburbs planned and developed in many different ways. Sometimes geography provides natural borders and sometimes the common ownership by one developer provided the impetus for the naming or borders. Sometimes names and borders have even moved.
As a result Melbourne suburbs vary from 13,741 houses in Reservoir to 18 in Gilderoy. At more than 67km from the CBD the small ‘suburb’ of Gilderoy is more representative of it being a town than a considered decision to create a small suburb.
There are 12 suburbs in total that have more than 10,000 houses. Each is bigger than medium-sized regional centres such as, Mildura, Shepparton and Warrnambool and without outlying suburbs.
Those 12 suburbs are Reservoir, Frankston, Glen Waverly, Berwick, St Albans, Pakenham, Point Cook, Werribee, Mount Waverly, Hoppers Crossing, Craigieburn and Sunbury. Interestingly many of those were once separate towns which have now expanded considerably as they have become more proximate to the cities outer edge. As many of those are still being developed they are likely to grow further.
The vagaries of place naming and suburb size become even more obvious when the case of Croydon is considered.  On its own, Croydon is a large but not massive suburb with 7,293 houses. But once neighbouring Croydon North, South and Hills are considered, its size grows to 12,446 houses.
When buying in larger suburbs it is therefore sensible to consider where specifically a home is as factors such as distance from a train station, park or school may vary considerably. The form of housing may vary as well.
Auction buyers to benefit from interest rate cuts
This week’s interest rate cut will provide a boost to the auction market over the coming month and deliver a welcome reprieve for buyers looking to reduce costs. Not only will buyers enjoy the increased purchasing power, sellers will welcome the unexpected boost to the market in the middle of their marketing campaigns.
This week, there are 1,218 auctions expected across Australia, with 824 of these scheduled for in capital cities. This is compared to 502 last week and 927 for the same week last year. The primary reason for lower auction volumes in capital cities is due to 36 per cent fewer auctions in Melbourne.
In Sydney 317 auctions are expected compared to 154 last week and 362 this week last year.
In Melbourne 214 auctions are expected compared to 102 last week and 335 this week last year. The main activity this week in Melbourne will be found in the eastern suburbs with 9 auctions in Mount Waverley and 8 in Glen Waverly. In Portarlington, near Geelong, there are also 9 auctions expected.
There are 99 auctions expected in Brisbane compared to 85 last week and 98 this week last year. This highest level of activity will be found outside Brisbane with 180 auctions scheduled across the rest of Queensland. For example, the most auctions in any one suburb in Queensland will be in Surfers Paradise where 9 are expected.
In Adelaide there are 86 auctions expected. This is slightly lower than the 102 last week but higher than the 70 on the same week last year.
In Canberra the volume of auctions is higher than last week and this time last year when there was 50. There are 69 expected this week.
In Perth 30 auctions are expected compared to 24 last week and 43 this week last year.
The highest volume of auctions will be in Port Macquarie (NSW) where 10 are expected.
 
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Melbourne house owners on track for another year of growth: Robert Larocca

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The Wyllie Group and Charter Hall have sold the Abbotsford headquarters of Carlton &amp; United Breweries.
The Chinese investment company Hengyi has paid more than $20 million for the office building and warehouses next to CUB's nine-hectare brewery on Yarra River.
The curved five-storey office building at 2-6 Southampton Crescent, built in 1928 for Kodak.
The acquisition includes a vacant warehouse at 36 Bond Street and warehouses at 10-32 Duke Street. The buildings were part of a portfolio sale and leaseback deal struck in 2007.
Charter Hall and the Wyllie Group paid $41 million for 10 properties on two hectares around the Abbotsford brewery.
After the sale of parts of the portfolio, the Wyllie Group paid $18.3 million in 2009 to become the sole owner of the remaining properties.
The transaction was negotiated by agents Dawkins Occhiuto and Vinci Carbone
Hengyi will re-lease the space when CUB moves out.
The area has a special zoning underpinned by the Abbotsford brewery. Although CUB has stressed it has no plans to close the brewery, its eventual closure will lead to a rezoning of the area and redevelopment of the surrounding buildings.
Hengyi has paid more than $20 million for the office building and warehouses next to CUB's nine-hectare brewery on Yarra River.
The curved five-storey office building at 2-6 Southampton Crescent, built in 1928 for Kodak, returns $2.2 million a year in rent.
The acquisition includes a vacant warehouse at 36 Bond Street and another complex of warehouses at 10-32 Duke Street, which is on 2,404 square metres and returns $516,286 a year.
Their leases expire in December 2017. The buildings were part of a portfolio sale and leaseback deal struck in 2007.
Charter Hall and the Wyllie Group paid $41 million for 10 properties on two hectares around the Abbotsford brewery.
After the sale of parts of the portfolio, the Wyllie Group paid $18.3 million in 2009 to become the sole owner of the remaining properties.
The transaction was negotiated by agents Dawkins Occhiuto and Vinci Carbone, who confirmed the sale but declined more information.
The high yielding investment is expected to be a long-term hold for Hengyi, which will re-lease the space when CUB moves out.
The area has a special zoning underpinned by the Abbotsford brewery. Although CUB has stressed it has no plans to close the brewery, its eventual closure will lead to a rezoning of the area and redevelopment of the surrounding buildings.
The transaction was negotiated by agents Dawkins Occhiuto and Vinci Carbone, who confirmed the sale but declined more information.
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CUB's Abbotsford headquarters sold to Chinese investment group

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Off the plan sales are underway in Australia 108, the 100 storey residential highrise at 70 Southbank Boulevard in Melbourne. 
There has already been one family buying five apartments with intentions of combining them, on the 79th level costing over $9 million through Andrew Leoncelli, Melbourne director of the selling agents, CBRE.
It was not an entire floor, as Property Observer gleans the 79th floor has eight apartments.
The big launch is February 14.
The tower was originally designed to be 388 metres high but has been scaled back due to concerns over civil aviation flight controls.
It has also been changed from a hotel plus apartments to apartments only.
The tower is being developed by Singaporean company World Class Land, a subsidiary of Aspial Corporation headed by billionaire businessman Koh Wee Seng.
Completion is scheduled for early 2019. 
<img src="/images/2015/01/15/TPA8467_Australia_108_E01_Hero%20Elevated.jpg" alt="">
<a href="https://www.australia108.com.au" target="_blank">Australia 108</a> will have one-bedroom apartments (42-50 square metres) from $517,500.
One bedroom plus study apartments (57 square metres) will be price from $630,500; and two bedroom apartments (58-72 square metres) from $642,500 all on the first 67 levels, called "Sky Rise".
The levels above will be the "Cloud Rise" section, with three-bedrooms (120-151 square metres) from $1.64 million and three bedroom, three bathroom penthouses (172-211 square metres) from $3,014,700. 
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Family snaps up five 79th floor apartments in Australia 108

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GUEST OBSERVATION
Melbourne has defied the critics with better than expected post-GFC property price growth. The city boasts a wonderful cultural lifestyle, Australia's best town transport network, and year-round tourism.
But, is that enough to justify plonking money in to a market where the cost of accommodation is already significantly higher than two thirds of Australia?
A significant portion of Victorian government revenues over the last five to six years has been in the form of property-related taxes from an <a href="https://www.propertyology.com.au/wp-content/uploads/2014/04/2013.02.16_Propertyology_FieldOfDreams.pdf">over stimulated construction industry</a>.
<img src="/images/2015/01/30/pressley%20jan%2030%20one.jpg" alt="">
We have been increasingly concerned about an oversupply implication on Melbourne property markets. The data in our building approvals graphic shows that property supply has been significantly higher over the last five years than previous trends.
To date, the higher supply has been counter-punched by higher demand in the form of a swing in population growth. Population growth rates have come from two main sources: <a href="https://www.propertyology.com.au/wp-content/uploads/2014/04/InterstateMigration_2014-06.jpg" target="_blank">net interstate migration</a> and the international student market.
We believe that Melbourne’s property market is very delicately poised. We question the sustainability of Victoria’s ‘we’ll keep building and they’ll keep coming’ strategy. The market has been over supplied for some time. Rental yields are already the lowest in the country and vacancy rates will rise above where they are now.
In our opinion, Victoria has some significant economic challenges on the horizon. The state has a high exposure to manufacturing and the closure of Ford, Holden and Toyota during 2016-17 will inflict a lot of pain. According to a study conducted by University of Adelaide, 98,000 Victorian jobs will be lost. The city councils with the biggest exposure are Melbourne City (15,000), Hume (9,000), Dandenong (7,000), Hobsons Bay (6,000) and Geelong (5,000).
A new state government was elected in to office in November 2014 which resulted in the scrapping of one of the state’s very few major infrastructure projects – the $18 billion East West Link transport project.
With a waning manufacturing industry, fewer state-owned assets than the likes of New South Wales and Queensland, and a small infrastructure pipeline it remains to be seen how the jobs will be created to support a growing population.
Will the new government play the ‘just expand the public sector’ card?
<img src="/images/2015/01/30/pressley%20jan%2030%20three.jpg" alt="">
Even with the higher population growth rates, the rates of property supply are enough to be concerned about. Things could become quite ‘ugly’ if intervention doesn’t create the extra jobs needed to support population growth. We might see interstate migration trends do an about face over the next couple of years.
Simon Pressley is managing director of Propertyology, a property market analyst, accredited property investment adviser, and buyer’s agent. 
<a href="https://www.propertyology.com.au/more-than-a-buyers-agent/" target="_blank">Propertyology </a>works exclusively with property investors to purchase properties in strategically chosen locations all over Australia.
<h2>How to purchase high-performing investment properties: a free Propertyology eBook</h2>
 
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spressley-sBoeMhannA

Melbourne oversupply is an increasing concern: Simon Pressley

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The latest CoreLogic RP Data Pain and Gain Report  compares the sale price with purchase price for all homes sold in the most recent quarter and for which there is comprehensive data available.
Note: The report does not cover developer sales.
The central message of the <a href="https://www.corelogic.com.au/news/pain-gain-report-released-for-the-september-2014-quarter" target="_blank" title="Read the Pain and Gain report">Pain &amp; Gain Report</a> is  that owners are more likely to make a profit if they hold the property for a reasonable length of time, especially when the upfront impost of stamp duty and other transaction costs are taken into account.
For example, nationally, 3.3% of sellers made a 100% profit selling within one year of buying and almost passed this mark by half after 10 years of ownership.
In the September quarter last year, 6.5% of sellers in Melbourne made a loss in nominal terms. This was a slight improvement on the 6.6% in the June quarter and a substantial improvement on the 7.4% a year ago.
On a more local basis there are two ways of looking at the data; the proportion of sellers that made a profit and the gross profit made. Obviously the total profit made was higher in the more expensive municipalities. For example the highest profit was recorded in Boroondara at $232 million. By comparison the total profit in Brimbank was $66 million.
The other way of assessing the data looks at the proportion of owners who made a profit. Of municipalities wholly within the metropolitan area Knox topped the list with 98.6%. It was followed by Monash on 97.4%, Casey with 96.6% and both Glen Eira and Whitehorse with 96.4%.
Interestingly this demonstrates that through medium to long-term ownership a profit can be found in more than just the most expensive parts of Melbourne.
Key facts
<ul>
<li>35.7% of sellers made a 100% or higher profit 
</li>
<li>Sellers in Boroondara made the highest total profit of $232 million 
</li>
<li>98.6% of sellers in Knox made a profit</li>
</ul>
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Profits can be found in more than just the expensive parts of Melbourne: Robert Larocca

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Historically speaking, the performance of last year’s rental market in Melbourne was relatively moderate.
In the last three months of 2014 the median advertised rent for a house in Melbourne increased by a minor 0.3% to $448 per week, the opposite to the -0.3% drop in the unit market.
September’s result is reflective of the broader performance of the rental market over 2014 where low rental growth and low yields persisted.
Over the course of 2014 house rents increased by 2.5% and units increased by 1.9%.
For houses, 2014 was not dissimilar to the past five years. On a annualised basis, rents rose by 2.5% in 2013, 1.3% in 2012, 2.7% in 2011. The only year that recorded a substantially different result was 2010 when rents grew 5.5%.
The unit market recorded similar results.
In many respects the rental market is following the changes in value seen in the ownership market. With the exception of the unit market, the last two years were similar and 2010 saw boom-like conditions.
Similar to the ownership market, the biggest question for 2015 is whether the growth in supply in the unit segment will further moderate advertised rents.
Yields remained low. For both units (4.2%) and houses (3.3%) the yield in Melbourne is the lowest of all capital cities. This does not seem to concern investors who are clearly focused on the longer term prospects for capital gains.
Key facts
<ul>
<li>Median advertised rent for a house in Melbourne $448</li>
<li>Median rent for house rise 2.5% in 2014, units 1.9%</li>
<li>Melbourne yields lowest of all capital cities</li>
</ul>
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Yields remain low in Melbourne rental market

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An inner-city development site, at 70-88 Greville Street and 42 Charles Street in Prahran, has been sold.
The buyer, reportedly a local private developer, paid more than $20 million.
It is a <a href="https://www.realcommercial.com.au/property-land+development-vic-prahran-501340459" target="_blank">2,662 square metre site</a> suitable for a mixed-use residential and retail project. It was the first time offered in 25 years.
For a time The Voluntary Euthanasia Society of Victoria had its office at 70 Greville Street.
The site was listed by Mark Wizel and Jamus Campbell of CBRE City Sales.
More than $23 million has been paid for a full city block in Collingwood too.
The 2010 square metre island site, bounded by Wellington, Langridge, Cambridge and Derby streets, sits within Collingwood’s so-called golden pocket.
“Rewind several years and few people would have expected that land in Collingwood and Prahran would be achieving in excess of $10,000 per square metre,” Wizel said.
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