Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

Melbourne

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EXPERT OBSERVER
Despite the lift, the Leading Index growth rate remains below zero, indicating momentum tracking well below trend.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/1/29/10_NEWS_BILL%20EVANS.jpg" alt="" width="536" height="359">
In fact the December print represents the thirteenth straight month where the Index growth rate has been negative.
This has been consistent with the persistent below trend growth we have seen for the Australian economy.
The latest update points to weak economic momentum continuing in the first half of 2020 and is consistent with Westpac’s view that growth will remain around a two per cent pace in the first half of 2020.
The Leading Index growth rate deteriorated over the second half of 2019, moving from –0.03 per cent in July to –0.32 per cent in December.
The main components driving the 0.28ppt shift have been a sell-off in commodity prices (–0.61ppts) and a more mixed performance on the Australian share market (–0.42ppts).
This has been partially offset by a stabilisation in the Westpac-MI Unemployment Expectations Index (+0.25ppts) a reduced drag from declining US industrial production (+0.21ppts), a modest lift in aggregate hours worked (+0.13ppts) and a widening yield spread as the RBA’s cuts in the cash rate have lowered short term rates (+0.10ppts).
The Reserve Bank Board next meets on February 4. Westpac expects that the Board will decide to hold the cash rate steady at its February meeting. That decision will be in response to the surprise fall in the unemployment rate from 5.3 per cent to 5.1 per cent since the last Board meeting in December.
However, we expect that decision to be a temporary pause in the rate cut cycle. The recent falls in the unemployment rate are expected to be unsustainable with this becoming apparent by the April meeting when we expect the next cut.
It is clear that the Board is confident that lower rates will boost the economy through a more competitive exchange rate; improved cash flows to households; and rising asset prices. However, the policy debate should not be around ‘either monetary policy or fiscal policy’.
The policies are not mutually exclusive and while Westpac expects a second rate cut in August we also support the use of fiscal policy to boost demand.
Our preference is to lift household incomes through bringing forward the stage two tax cuts phased over two years. A rise in expected demand should be more effective in boosting business investment than tax incentives.
BILL EVANS is the Chief Economist at Westpac
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Westpac leading index remains negative for over a year: Bill Evans 

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Throughout 2019, Melbourne's house price have almost recovered what was lost during the slump, according to the latest quarterly report from Domain.
Houses have seen a 5% increase in value with median prices reaching $901,951. Units have seen even stronger growth of 5.6% with median values hovering around $549,701.
Though the year sprung off with deteriorating prices, the rest of 2019 saw growth, with the the final quarter providing the strongest quarterly gain in three years and the largest annual jump in two years.
With just under $6,800 left to regain, it appears that house prices are set for a new record high next quarter. 
However, this recovery remains uneven across the Melbourne as there are substantial price rises concentrated at the upper-end, led by the city, the inner east and inner south. 
Units in Melbourne continue to outperform houses as unit prices produced the strongest quarterly growth since mid-2009, and the biggest annual surge since mid-2010.
Unit prices are currently at a new record high that is 7.5 per cent higher than the previous peak in early 2018. 
Melbourne and Hobart units were the only cities to record a new high. Meanwhile, other cities remain below previous peaks in unit prices. 
Melbourne is the second most unaffordable city for units, with its price being higher than the median house prices in Adelaide, Perth, Darwin and Hobart. 
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j.ballantyne1990-6AQqhLzZaK

Melbourne's property prices look set for a new record high: Domain

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Cbus Property has received approval from the Department of Environment, Land, Water and Planning (DELWP) for a $1 billion office tower in Melbourne’s CBD.
The permit-approved Bates Smart-designed development, to be known as 435 Bourke Street, will comprise 59,000 square metres of office space across 49 storeys, encompassing four addresses on the corner of Bourke and Queen streets.
The commercial precinct will amalgamate the existing 140 and 150 Queen Street and 27 McKillop Street sites and is anticipated to serve as a vertical village for more than 5,500 city workers.
Cbus Property’s Chief Executive Officer, Adrian Pozzo said, “office vacancy rates in Melbourne’s CBD are at decade lows and there is little to no office space in the pipeline beyond 2023 so we are looking forward to sating some of this appetite with 435 Bourke Street.”
"The approved tower will form part of a new centre point in the Hoddle Grid and will feature multiple landscaped terraces providing an outlook across the Yarra River and iconic CBD landmarks, such as the MCG and Port Phillip Bay," he added
The diverse space will include a retail offering, double-height multi-function space for active wellness, flexible studio spaces and consulting rooms for passive wellness, as well as a rooftop garden retail offering. There will also be premium end-of-trip facilities, with accommodation for 600 bikes and associated amenities.
435 Bourke Street is targeting a 6-star Green Star rating, 5.5-star NABERS Energy rating and a Platinum WELL rating.
Demolition of the site’s existing infrastructure has commenced, with construction completion slated for 2023.
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CBUS receives planning approval for $1 billion Melbourne office tower

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Nine markets, the most recent being Sydney, Lismore and the Gold Coast have all reached the peak of the office market, according to valuation firm Herron Todd White latest report.
In their December National Property Clock for the office market, Herron Todd White found Ballina/Byron Bay, Coffs Harbour, Dubbo, South East NSW and the Sunshine Coast have been at the peak of the office market at least a month now.
The Illawarra office market has begun approaching it's peak as well.
Brisbane is now classified as a rising market, joining Ballarat.
Office markets that are just beginning their recovery this month Geelong and Newcastle who have joined that likes of Adelaide and Canberra, markets where a recovery as already begun.
Three capital cities remained in a bottom of the market position, Darwin, Perth and Hobart.
They are joined by Cairns, Launceston, Mackay, and Townsville, among others.
<a href="https://www.propertyobserver.com.au/images/2019/12/9/HTW%20Office%20Clock%20Decembe%202019.JPG" target="_blank">Click here</a> to enlarge:
<img src="https://www.urban.com.au/images/2019/12/9/HTW%20Office%20Clock%20Decembe%202019.JPG" alt="">
Alice Springs and Ecucha have continued to decline while the Mid North Coast is still at the beginning of its fall.
Rockhampton has joined Gladstone and South West WA as they approach the bottom of the market.
"It should come as no surprise that there was a mixed bag of results for the office market in 2019," the HTW report noted.
"Many big-city investors were looking to shore up cash flow by concentrating on commercial stock, which led to incredibly strong prices, but in less-populated areas, the outcomes were a bit more subdued."
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Sydney joins Melbourne as a peak office property market: HTW December Office Clock

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A ground-level café investment at the entrance of Melbourne's Botanicca Corporate Park has been sold for for $1,701,000.
Fitzroys agents Chris Kombi and Jordan Ceppi sold the property at Shop 1, 572 Swan Street at a 6.4% net yield.
The property encompasses a generous 500 square metres, comprising a modern fully-fitted café of 310 square metres, with a further 190 square metres of outdoor seating.
Leased to experienced café operator trading as The Shed on a 5+5+5 year lease, the property is currently returning a net rental of $110,000 per annum plus GST, with fixed annual increases of 4%.
Positioned on the corner of Swan Street and Central Drive at the entrance of Botanicca Corporate Park, the property provides highly exposed corner frontage of 34 metres.
Kombi said the Deadline Private Sale campaign saw a competitive process that attracted a range of investors, with a SMSF investor winning out.
"Investors are seeking strong income-producing, securely-leased assets in locations with healthy growth prospects," Kombi said. 
"Following further recent interest cuts, SMSF investors are looking in greater numbers for solid returns and are playing a more prominent role in the Melbourne retail investment market."
Major companies occupying neighbouring buildings include David Jones, Country Road, Harris Scarfe, GE, Fulton Hogan and Wells Fargo plus the 4.5-star Marriott Business Class Hotel and The University of Melbourne.
The property also benefits from its close proximity to the Swan Street tram network and the Heyington and Burnley train stations, as well as easy linkages to the CBD and broader Melbourne via the Citylink and Monash M1 Freeway.
Ceppi said Fitzroys has now sold three Melbourne retail investment properties to SMSF investors in the past two weeks.
"Investors are seeking retail assets across Melbourne with strong fundamentals in large numbers. This will likely continue in line with the low interest rate that is expected to remain long-term," said Ceppi. 
Fitzroys recently sold Shops 19-20, 190 Jells Road in Wheelers Hill for $2.4 million to a SMSF investor at a 5.2% yield, with a 10+5+5-year lease to renowned hair salon Rokk Ebony Properties.
That followed the sale of 2-6 Copernicus Crescent, Bundoora, also a high exposure quality café investment, which was bought by a SMSF investor for $2.6 million at a 5.5% yield and with a 5+5-year lease.
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Café investment at Melbourne's Botanicca Corporate Park sold for $1.7 million

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EXPERT OBSERVER
Melbourne has negotiated the difficult post-boom correction phase and is now clearly in recovery mode.
The turn-around in overall fortunes in the Melbourne metropolitan area since the middle of 2019 has been characterised by a noticeable improvement in auction clearance rates and recent evidence of a revival in price growth.
Many Melbourne suburbs still have median house prices below the levels of 12 months ago, but in the most recent quarter their medians have risen.
And the latest generalised data for Melbourne suggests the city overall now has pricing levels higher than a year ago. SQM Research has Melbourne houses up 2% in annual terms, while CoreLogic reports a rise of about 1%. Both those sources report solid rises in latest month, both for houses and for apartments.
A standout feature has been the resilience of suburban unit markets in 2019: many Melbourne suburbs have recorded substantial decreases in their median house prices but rises in their median apartment prices.
The official statistics show that first-home buyers overall are more active now than at any time in the past eight years - and many young adults opt for the apartment lifestyle, rather than a house on land - and not just because it’s cheaper.
So demand for affordable apartments stayed relatively strong in 2019 at a time when demand for houses was weak. 
The price differential - in many Melbourne suburbs the median price for apartments is roughly half that for houses - has been a factor.
But demographic factors have also been influential. Not only do many young adults prefer apartments, but downsizing retirees are buying units and townhouses, while migrants flooding into Melbourne are often coming from cultures where attached dwellings are the norm.
For all these reasons, many apartments markets in suburban Melbourne have remained solid during the post-boom correction - and look poised for further growth.
At the same time, there has been strong demand for houses in good suburbs, but listings have been low.  Despite the onset of Spring and the increasingly positive market news in mainstream media, vendors have been strangely reluctant to come to the party. The downturn in the construction of new dwellings has been an additional factor.
The imbalance between supply and demand has been a factor in lifting clearance rates and median prices - and many forecasters are tipping strong performance in 2020.
SQM Research’s Louis Christopher in his Boom and Bust report, is forecasting price growth of up to 15% for Melbourne in 2020. SQM’s growth predictions for 2020 are modelled on different scenarios of what might occur over the next 12 months, based on changing market fundamentals and controls.
The base scenario – which would keep the cash rate unchanged at current lows of 0.75%, no intervention from banking regulator APRA, a recovering economy and a healthy Australian dollar – sees property prices rise 7% to 11% nationally through 2020.
But Melbourne is expected to exceed this with price growth of 14-15%, taking property values to new highs.
Other forecasters, including Commonwealth Bank and HSBC, are also tipping significant growth in major Australian cities in 2020, with Melbourne at the high end of the growth list.
In making selections for Hotspotting’s new edition of Top 5 Melbourne Hotspots, I have highlighted areas that have shown resilience during the downturn, have offerings that are affordable to mainstream buyers and have solid credentials for long-term, sustainable price growth.
The Darebin LGA precinct provides a good example: it has suburbs that continue to evolve through gentrification in good locations, with attractive proximity to the CBD and other big employment nodes.
Houses are relatively affordable and apartments particularly so. Vacancies are very low, as rental demand is consistently strong, and long-term capital growth rates are good. Yields are above average for Melbourne.
Similar arguments could be made for the Moreland and Moonee Valley municipalities which also feature in the new edition of our Melbourne report.
Brimbank and Wyndham make up the top five.
Overall, it’s a good time to be considering real estate investment in Melbourne and we expect 2020 to be a vibrant year for markets in the Victorian capital.
Terry Ryder is the founder of hotspotting.com.au
<a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a>
twitter.com/hotspotting
 
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Melbourne's Darebin in hotspot recovery mode: Hotspotting's Terry Ryder

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One of the most highly-anticipated skyscrapers of our decade, <a href="/buildings/australia-108-southbank-70-southbank-boulevard-southbank">Australia 108</a>, has just achieved yet another construction milestone, reaching its peak core lift height of <a href="/buildings/australia-108-southbank-70-southbank-boulevard-southbank">100 levels</a>.

The <a href="/architects/fk-australia">Fender Katsalidis</a>-designed building is the sister tower to its neighbouring Eureka Tower, which Australia 108's building slab height surpassed earlier this year.  

This remarkable construction feat undertaken by <a href="/builders/multiplex">Multiplex</a> required a series of new building techniques to be developed explicitly for the project due to the unique nature of its design. An example of this is the purpose-build platforms which were installed for builders to install the 12-tonne golden trusses on to create the striking Starburst feature.

<a href="/developers/world-class-global">World Class Global</a> CEO David Ng explains that the unique golden feature will become an iconic hallmark of the Melbourne city skyline. 

<blockquote>
"The arrival of Australia 108's golden Starburst is a distinctive moment in the transformation of Melbourne's skyline for decades to come. I think many Melburnians will look back one day and struggle to remember a time when this golden star wasn't twinkling on our cityscape.”
</blockquote>

<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/screen_shot_2019-11-28_at_3.30.47_pm.png" rel="gallery-all" title="Australia 108. Credit: Aspial - World Class Land"><img alt="" class="image-article-full-width-580px" height="876" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2019-11-28_at_3.30.47_pm.png?itok=TinNkvy-" title="Australia 108. Credit: Aspial - World Class Land" width="580"></a>

<figcaption>Australia 108. Credit: Aspial - World Class Land</figcaption></figure><h2>Construction facts at a glance:</h2>

<ul>
<li>The Starburst is made up of 24 trusses (15 metres by 3.3 metres)</li>
	<li>Extensive groundworks took ten months to complete</li>
	<li>Bored piles reach 47 metres underground</li>
	<li>Interiors are slated for completion early next year</li>
	<li>The entire tower is likely to be completed mid-2020</li>
</ul>
<blockquote>
"The installation of the Starburst is a key milestone in the delivery of this iconic tower, and we're delighted to have completed it safely and to an exceptional standard of quality. "It's a very proud moment for the entire Multiplex team to see Australia 108 and its Starburst now standing tall on the Melbourne skyline."
</blockquote>

Graham Cottam, Multiplex Regional Managing Director 

Currently, residents on lower levels of the tower have moved into their new homes, and have access to Level 11 facilities. These <a href="/project-updates/australia-108-amenities">amenities</a> include a fully-equipped gymnasium and pool, a golf simulator, movie theatre and dining room. 

<h2>Other updates:</h2>

<ul>
<li>Over the next few months, owners of the premium Cloud Residences (Levels 72 to 83) will be allowed to move into their homes. </li>
	<li>A new release of 3-bedroom Cloud Residences is now available for sale.</li>
</ul>
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Olivia Round

Australia 108 reaches 100th floor and achieves new construction milestone 

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The Melbourne CBD commercial property market has performed strongly over 2019, continuing its momentum from the preceding year and setting record capital value rates and sharp yields, said Colliers International. 
According to its data, the Melbourne CBD market has performed exceptionally well year-to-date with a total of 12 middle market assets having transacted between $10 million - $100 million as at October 2019. 
Total transaction volume of sales is approximately $475 million averaging a capital value rate of over $15,000 and a sharp yield of 2.67%.
Daniel Wolman, Colliers International National Director of Melbourne City Sales, said the office investment market had been fuelled by the record low vacancy rate of 3.3%, one of the lowest vacancy rates we have experienced since 2008. 
“This has translated into the continued rise in rents and capital values, leading to further compressions of yields,” Wolman said. 
“We are seeing more and more local add-value players competing for high quality middle market assets within the Melbourne CBD. 
“The shortage of stock has also led to institutional players entering the $10 million - $100 million price bracket which is not traditionally explored by institutions.” 
Whilst the number of transactions decreased from 2018 and then remained steady throughout 2019, initial yields have demonstrated a strong downward trend with capital value rates creeping upwards, averaging $15,000 per square metre. 
The most recent sale of Swann House, 22 William Street, Melbourne demonstrates a sharp yield of 2.55%, in which sub 3% yields are becoming increasingly common place. 45 Exhibition Street, Melbourne which transacted in April 2019 showed a record high capital value rate of $17,562 and a yield of 1.33%. 
“The Reserve Bank of Australia cash rate cut to the current 0.75% has arguably fuelled the confidence of the commercial investment market, providing for a lower cost of borrowing coupled with an increase in appetite for quality commercial property offerings from investors and add-value players,” Colliers’ Oliver Hay said. 
“We anticipate this trend to continue throughout the rest of 2019. The extremely tight nature of middle market assets within the Melbourne CBD, coupled with the record low cash rate and positive investment sentiment will continue to fuel and provide a strong foundation for 2020.”
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Melbourne CBD office investment set to end year on a high

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EXPERT OBSERVER
With the property markets in Sydney and Melbourne projected to reach new peaks by the end of 2020, it’s back to ‘square one’ for housing affordability. There is also likely to be a new tipping point as well as potential for the reintroduction of macroprudential measures by APRA.
According to RiskWise’s latest Risks &amp; Opportunities Report, Sydney and Melbourne were highly likely to be the top performing markets in Australia next year, well ahead of any others.
It also means both Sydney and Melbourne would be back to ‘square one’ when it came to housing affordability and undersupply of family-suitable properties relative to demand driven by population increases, the biggest (recurrent) issue in the Australian property market since mid-last decade.
And it could spark the reintroduction of macroprudential measures by APRA if ‘speculation’ by investors rises and increases the risk to the financial stability.
New peaks are expected in Sydney and Melbourne with additional peaks reached thereafter more frequently until the market reaches a new tipping point.
This is the point where consumer confidence in relation to house price materially decreases, houses are severely unaffordable for owner-occupiers and investors’ out-of-pocket expenses will mean they are beyond their tolerance point especially with low rental returns.
Obviously the key question is when the new tipping point will be. We’re not expecting one in 2020 but without regulatory intervention there will be one.
He said RiskWise projected strong price increases across a large number of areas in Sydney and Melbourne in the short term, and particularly the long term, thanks to a good (while a somewhat deteriorating) employment market and strong population growth, particularly in Melbourne.
The RBA’s interest rate cuts (the most recent one in October 2019 with the possibility of a further one in the first half of 2020), some loosening of credit restrictions, significant improvement in buyer confidence and increased auction clearance rates provide very strong indications regarding these markets, he said.
Buyer sentiment in relation to housing measures has noticeably improved and the Westpac-Melbourne Institute’s House Price Expectations and Time to Buy a Dwelling Indices show a consistent trend. Auction clearance rates have also recovered and are largely above 70 per cent in Sydney and Melbourne.
As we predicted immediately after the election and in our previous Risks &amp; Opportunities Reports, the market has materially improved with affordable areas that have shown resilience recovering well. Other areas, including lucrative ones that experienced strong price reductions, are now leading the way to this recovery.
However, he said a significant reduction in dwelling commencements would continue to create a problem of undersupply of family-suitable properties in high-demand areas, while there was also a high level of supply of rental properties in some areas.
September ABS dwelling approvals showed a 32.6 per cent drop in Sydney and a 30.3 per cent in Melbourne.
These imbalances are a major issue with a very material impact on dwelling prices particularly those unsuitable for families, he said.
In addition, a sustained period of ultra-low interest rates and, consequently, a significant increase in housing finance, is highly likely to see a rise in investor activity. Sydney and Melbourne have the largest concentration of investors and an increase in their activity will have a major impact on dwelling prices.
However, he said it was possible APRA would consider the reintroduction of macroprudential measures if increased investor activity contributed to double digit growth.
A new tipping point is reached when properties become very unaffordable for owner-occupiers and the out-of-pocket costs for investors become so high, they cease investing. Banks will also become more risk aware and apply additional rules and requirements to ensure serviceability.
Obviously, if APRA reintroduces tighter lending restrictions, this is highly likely to have a negative impact on price increases, potentially not only in Sydney and Melbourne but also other areas of the country.
Interest rate reductions have significantly improved serviceability of both owner-occupiers and investors. However, with low economic growth and effective unemployment above the ‘full employment’ target, it is possible that without a material change to the fiscal policy, the RBA will cut interest rates again during 2020 to 0.5 per cent.
Since moving through a trough in May, the value of new owner-occupier home loan commitments has increased by 17.3 per cent through to the end of September and the value of investor loan commitments is up 8.4 per cent.
Population growth continues to be strong in Sydney at 1.8 per cent, and unemployment sits at 4.3 per cent. In Melbourne population growth is 2.5 per cent (the highest in the country), and unemployment 4.8 per cent.
The latest ABS data on new housing credit also shows a sharp rise in the value of home loan commitments, driven by a surge in owner-occupier lending as well as a smaller rise in investment lending.
APRA is watching the housing market closely, particularly given record-low interest rates, high household debt and signs of some revival in borrowing for speculative purposes.
It should be noted that strong investor activity is perceived by the RBA as ‘speculation’ that increases the risk to the financial stability. Consequently, a major increase in investor activity is likely to trigger the reintroduction of macroprudential measures by APRA.
RiskWise is now working on specific modelling to estimate the tipping point.
DORONG PELEG is the CEO of <a href="http://www.riskwiseproperty.com.au" target="_blank">RiskWise Property Research</a>
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When is the next tipping point for residential property in Sydney & Melbourne: RiskWise's Doron Peleg

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Urban's Display Suite Walkthrough series started with a look at the <a href="/news/urbans-tour-of-the-shelley-st-display-suite">Shelley Street display suite</a> in Richmond. Today, our second tour of the series features FOCUS by Central Equity in Melbourne’s Southbank. The Urban team were able to visit the display before it was deconstructed in time for construction to commence. 

<div class="rtecenter">Check out our video tour:</div>

<div class="rtecenter"> </div>

<div class="rtecenter"><iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/qDiYoOxsxoU" width="660"></iframe></div>

FOCUS AT A GLANCE

Developer: Central Equity

Architect: Doig Architecture

Location: 75 City Road, Southbank

Number of apartments: 592

Construction slated to begin: Nov 2019

<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/focus_kitchen_light_types_a_k.jpg" rel="gallery-all" title="FOCUS by Central Equity"><img alt="" class="image-article-full-width-580px" height="363" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/focus_kitchen_light_types_a_k.jpg?itok=ScX68IO_" title="FOCUS by Central Equity" width="580"></a>

<figcaption>FOCUS by Central Equity</figcaption></figure>After 30 years in the industry, and 75 residential projects delivered, Central Equity has now embarked on the construction of their latest project, FOCUS Melbourne. 

Situated in the heart of Melbourne’s Southbank, the sought-after location is likely to be a drawcard for buyers who want to live in the epicentre of one of the world’s most liveable cities.

Just a stone's throw from Melbourne’s Arts Precinct, residents will be able to enjoy exploring the city by foot, with theatres, the National Gallery of Victoria (NGV), music venues, 5-star restaurants and Universities within walking distance.

FOCUS Melbourne boasts impressive amenities, including a 17-seat luxe movie theatre; an expansive barbecue and social dining area; as well as lifestyle facilities including a pool, gymnasium and sauna.

For added comfort and liveability, each apartment features openable windows, which facilitate natural airflow throughout the residence. This is complemented by the state-of-the-art reverse cycle air conditioning system in each home.

The design also considers the impact of city-noise on the residences by assessing the sound-proofing of all glazing, walls, and insulation. Acoustic engineers have been engaged from the beginning of the design process to ensure optimum resident comfort.

Central Equity General Manger Ian Carkeek explains that double glazing is important for environmental reasons, cost-effective thermal control and sound attenuation.

<blockquote>
“Our latest designs have 2.7m high ceilings and full-height windows, letting in natural light, and importantly all those windows are double glazed, which means better energy efficiency, lower energy bills and better acoustic properties – and acoustics are very important.”
</blockquote>

Ian Carkeek, General Manager – Product Design, Central Equity

The apartment kitchens feature composite stone benchtops, LED feature lighting, soft-close cabinetry, Miele stainless steel appliances, high-quality German tapware, externally ducted range-hoods and innovative storage solutions. Buyers will also be invited to customise their apartments with a wide range of floorplan layouts to choose from.

Special offer: For a limited time, qualifying buyers could save $20,000-$52,000 in government stamp duty.

While the display suite is no longer open for tours as construction has already commenced, you can <a href="/buildings/focus-melbourne-81-city-road-southbank">reach out to the Central Equity sales agent</a> via Urban at any time.
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