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>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" dir="auto">
<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

Melbourne

<html><body>
Melbourne’s former Duke of York Hotel at Prahran, renamed The Smith after renovation by the owners including Lucy Liu, has been listed for auction with expectations of a $9.5 million plus price tag.
The Smith at <a href="https://www.realcommercial.com.au/property-retail-vic-prahran-502562654" target="_blank">213 to 219 High Street</a> recently reopened following a multi-million dollar renovation, expanding into the building next door and doubling the size of the venue to 1,045 sqm. 
The upgrade includes a retractable glass roof that creates a closed piazza style atrium, a 120-seat dining and bar area and a first floor function room.
The property current earns a net annual rental of $520,000 and will be sold subject to a new 10-year lease with two further ten-year options.
The asset is being marketed by Teska Carson’s Michael Taylor and Michael Ludski.
The auction is scheduled for October 20.
In occupation for the past seven years, the lessees are celebrated Melbourne restaurateurs Michael Lambie and Scott Borg of Lucy Liu, Taxi Dining Room, Lamaro’s and Circa fame, and business partner and current The Smith executive chef, Brad Simpson. 
The business operates a general 3 am liquor licence for 307 patrons.
<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/2017/09/26/Smith2.jpg" alt="">
Listing agent Taylor said the corner (Clifton Street) location would attract both investors and developers due to its commercial 1 zoning and with potential for a high rise residential development.
“The Smith ticks all the boxes for a solid investment with a secure lease to very successful tenants in an unrivalled location, but it also offers an exceptional landbank opportunity should the buyer wish to pursue future development options down the track,” said Taylor.
“Prahran has been and will continue to be a strong property performer as Melbourne’s population grows over the next 20 years and more, and the demand for apartments grows with it.’’ 
According to Ludski, it is the entertainment element that has been a key driver of property values in Prahran in recent times.
 “Put simply, ‘The Smith Prahran’ is an anchor hospitality destination situated within the epicentre of Melbourne’s hottest entertainment precinct,” he added.
 
</body></html>

jonathanchancellor-7SQnKwU6yx

Melbourne's former Duke of York Hotel on the block with $9.5 million price tag

<html><body>
ANZ economists have raised their expectations for dwelling price growth in 2017 to 5.8 percent from their previous forecast of 4.4 percent.
The housing market update, authored by authored by ANZ senior economists Daniel Gradwell and Joanne Masters, say Melbourne and Sydney will continue to be the main drivers of this growth in line with their expanding populations.
They point to Melbourne’s recent resilience as a reason they “have nudged our 2017 price forecasts higher, and now expect nationwide prices will finish the year 5.8 percent higher, followed by growth of 2.2 percent in 2018”.
They economists wrote that the “Melbourne market has recently been more resilient than the Sydney market, perhaps reflecting an element of ‘catch-up’ after Sydney outperformed in previous years”.
"Note that while we expect price growth will slow, there is no suggestion that prices will fall outright,” adds the report.
The report suggests that weaker auction results point toward a slower price growth through the remainder of 2017, while tighter borrowing conditions, and higher interest rates for investors are likely to weigh on growth through 2018.
However, the revised forecast for Melbourne of 5.8 percent, up from the 4.4 percent ANZ predicted,  reflects the continued population growth in the Victorian capital, the latest Australian Housing Update says.
On a national level, price growth has slowed across most capital cities and regional areas and across detached houses and the unit/apartment market over the three months, it said. Prices are now 9.7 percent higher than a year ago, down from the peak of 11.4 percent y/y growth recorded in May this year.
</body></html>

ANZ economists raise home price growth for 'resilient' Melbourne

<html><body>
Current pre-lease rentals on offer to lease new warehouses in Melbourne and Brisbane offer a good opportunity for tenants to upgrade, according to forecaster BIS Oxford Economics.
Leasing incentives in both markets have pushed effective rents to around their lowest levels in 10 years, with little change in stated rents over the 10-year period. Since 2007, average prime net effective rents in Melbourne’s South-East and Brisbane’s TradeCoast have fallen by 15 to 18%. 
Compounding the situation, stated rentals for a new lease are substantially below the rent being paid by tenants coming to the end of a long term lease, said BIS Oxford Economics.
For a tenant who signed a lease over a prime property in Melbourne’s South-East in 2007, with annual escalations of 3%, would be paying 25% above the current market rent for existing space. 
In Brisbane’s TradeCoast, the situation is even worse, with the tenant ending their lease paying an estimated 35% above market rents. It makes sense that companies would find the option to upgrade to newer, more efficient facilities at a much lower rent very appealing. 
The findings were carried in the BIS Oxford Economics’ latest reports on the sector, Melbourne and Brisbane Industrial Property, Market Forecasts and Strategies, 2017 to 2027.
<img src="https://www.urban.com.au/images/2017/09/11/ChartBIS.png" alt="">
However, the forecaster says the pre-lease deals on offer will not last indefinitely.
Over the last five years, major developers in Brisbane and Melbourne were able to use firming yields and rising capital values, underpinned by the strength of the investment market, to fund leasing incentives, whilst keeping a lid on pre-lease rents. The competition in the pre-lease market kept market rents subdued. 
But developers’ calculations will change when yields stop firming and start to soften, as forecast over the next five years. Without firming yields, developers will no longer be able to fund such generous leasing incentives and will need higher rents to underwrite project feasibility. Rising pre-lease rents will then filter through to the existing market. 
According to report authors, Lee Walker and Christian Schilling, the key trigger for the change in developer behaviour will come from rising Australian 10-year bond rates, which have a positive correlation to industrial yields. 
Even so, the forecast rise in bond rates will take time to change developer behaviour and the pre-lease deals they offer. 
Whilst BIS Oxford Economics consider it will be business as usual for the next 12 to 18 months, the generous leasing deals will gradually start to evaporate. With leases typically involving a long term commitment, tenants looking to upgrade would be advised to take advantage of the generous leasing incentives and rents whilst they are still around. 
</body></html>

Industrial tenants should capitalise on pre-lease offers in Melbourne, Brisbane: BIS Oxford Economics

<html><body>
The original Melbourne Savings Bank office in Carlton has been listed for auction with expectations of more than $2.5 million.
The building at <a href="https://www.realcommercial.com.au/property-offices-vic-carlton-502550550" target="_blank">208 Elgin Street</a> has come to market at a time office rates in Melbourne CBD are reaching record heights, in some instances pushing $12,000 per sqm, according to Colliers International, which is marketing the property.
It will be auctioned on October 6.
The 298 sqm property has triple frontage to the intersection of Lygon and Elgin streets.
The two-storey freehold includes the bank’s original safe and has a net lettable area of about 400 sqm, comprising nine offices or residential spaces with double-height ceilings and modern appliances. 
The listing agents are Oliver Hay, Daniel Wolman and David Sia.
“The short-term holding income provides flexibility for investors, owner-occupiers or value-add players, and the commercial use enhances the asset’s versatility,” Hay said.
Wolman added that its location, close to the University of Melbourne, was a key selling point.
“With Carlton office space starting at about $8,000 per square metre on building rates, buyers are seeing significant value for money in what is a highly convenient, lifestyle-driven suburb with extensive CBD synergies,” Hay added.
“At a more affordable rate, purchasers can make the move to Carlton, literally metres from the CBD, and invest in significant parcels of land among Melbourne’s best education institutions and amenity.”
</body></html>

Former bank building in Melbourne's Carlton listed with $2.5 million hopes

<html><body>
Investec Australia Property Fund (IAPF) has announced the acquisition of an industrial property in Hallam, Melbourne for $22 million on an initial yield of 6.3%. 
The property at <a href="https://www.realestate.com.au/property/11-siddons-way-hallam-vic-3803" target="_blank">6-8 and 11 Siddons Way</a> comprises two separate buildings with a gross lettable area of 15,504 sqm.
It is split into warehouse and distribution facilities along with office accommodation.
The site area is 32,701 sqm.
The property is 33 kilometres south east of the Melbourne CBD in one of the city’s most established industrial precincts. The property has easy access to major arterials and freeways including the South Gippsland Highway, Eastlink and the Monash Freeway. 
IAPF chief executive Graeme Katz said the acquisition would take the value of the fund’s total portfolio to $801 million.
“The property is located in one of Melbourne’s most tightly held industrial precincts which is home to other significant companies such as Ceva Logistics, Australia Post and TNT. In addition, Amazon has just announced it will locate its first Australian distribution facility in the adjoining suburb of Dandenong South. 
Settlement of the property is expected by mid-October, said IAPF.
The Johannesburg-listed IAPF, which helps South African investors access Australia’s commercial property market, said the acquisition is accretive for the fund and will be funded by utilising its existing debt facility.
The property is 100% occupied by Australian retailer Focus on Furniture, which uses the property as their national office and main distribution warehouse. 
Focus on Furniture has been operating for 15 years and specialises in lounges, dining and bedroom suites. 
It currently has 33 stores in Victoria, NSW, ACT, South Australia and Queensland with more than 150 staff. 
Focus on Furniture is on a long lease, expiring in 7.8 years with annual rent increases of 3%.
Following the acquisition, IAPF will be geared to 35% with a weighted average cost of debt of 3.67% and hedged to 87% for an average of 7.2 years, it said.
“The acquisition aligns well to the Fund’s strategy of investing in well-located, high quality assets that provide a sustainable income stream for investors,” Katz said.
He added that though the property had a strong tenant, it has flexible future uses and could potentially be split into two separate units to accommodate multiple users. It is also split over two titles which could be sold separately.
 
</body></html>

prateek24-ezbwHMbNAk

Investec Australia Property Fund acquires Melbourne industrial property for $22 million

<html><body>
The Melbourne apartment market is still at its peak, according to Herron Todd White’s latest report.
The property data firm says that it has not changed since last month’s report.
Melbourne is the only major capital city at its peak.
It is joined by Coffs Harbour, Gold Coast and Newcastle.
Sydney's market is beginning to decline.
Brisbane's unit market is in decline.
 
<a href="https://www.propertyobserver.com.au/images/2017/09/07/Screen%20Shot%202017-09-07%20at%202.15.09%20pm.jpg" target="_blank">Click to enlarge</a>
<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/2017/09/07/Screen%20Shot%202017-09-07%20at%202.15.09%20pm.jpg" alt="">
A two bedroom apartment at <a href="https://www.realestate.com.au/property-apartment-vic-flemington-126288362" target="_blank">7/106 Ascot Vale Road</a>, Flemington (above) has been listed for $259,000.
A one bedroom apartment at <a href="https://www.realestate.com.au/property-apartment-vic-clifton+hill-126413166" target="_blank">11/109 Heidelberg Road</a>, Clifton Hill (below) has been listed for $339,500.
It last sold in 2007 for $307,500.
<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/2017/09/14/11_109%20Heidelberg%20Road.jpg" alt="">
On the other hand Albury has now moved to a rising market.
Units in Bathurst, Orange and south west Western Australia are starting to recover.
Units in Alice Springs remains at the bottom of the market.
A one bedroom unit at <a href="https://www.realestate.com.au/property-unit-nt-alice+springs-109123501" target="_blank">5/26 Palm Place</a>, Alice Springs (below) has been listed for $159,000.
<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/2017/09/13/5_26%20Palm%20Place.jpg" alt="">
A two bedroom unit at <a href="https://www.realestate.com.au/property-unit-nt-desert+springs-126146306" target="_blank">3/4 Caterpillar Court</a>, Desert Springs (below) has been listed for $375,000.
Built in 1995 the 216 sqm property last sold for $185,000 in 2005.
<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/2017/09/13/3_4%20Caterpillar%20Court.jpg" alt="">
</body></html>

j.ballantyne1990-6AQqhLzZaK

Sydney unit prices declining, Melbourne apartments at peak, Alice Springs units at bottom of market: HTW property clock

<html><body>
Malaysian developer SP Setia has sold 80 per cent of the apartments in its luxury twin-tower Melbourne project on Exhibition Street, contrary to concerns of a slowing in the apartment market.
The developer paid a record $101 million for the former Telstra Exchange site at 308 Exhibition Street in 2016.
SP Setia’s mixed-use development project, which will also feature a five-star hotel, is estimated at $640 million.
The developer did not say how many of the roughly 280 apartments in Sapphire By The Gardens sold so far were to overseas buyers, but according to The Australian Financial Review, foreigners made up a high proportion of buyers.
Recent reports from Chinese-based real estate agents suggested a sharp fall in interest from offshore buyers for Australian apartments due to restrictions on capital outflows imposed by Beijing, new stamp duty surcharges and a tighter lending market in Australia.
Jon Ellis, who runs off-the-plan marketplace Investorist, recently said demand was down 40 per cent, but that developers of quality projects were still making sales in Asia.
Last year, the developer also bought an 850 sqm development site in Melbourne’s Prahran.
"Quality high-rise developments in Victoria, like Sapphire By The Gardens, will continue to attract a healthy mix of offshore, interstate and local interest" said Tim Storey of Colliers International Residential, the lead selling agent on the project.
The project has a residential tower with 345 apartments and a second tower that will be house a five-star hotel Shangri-La hotel with about 500 rooms. Overlooking Carlton Gardens, the project is expected to be complete by 2021.
The project includes a $29 million penthouse with the remaining apartments priced from $1.085 million, to just under $1.9 million.
The developer is holding events to launch the sale of the remaining 20 per cent apartments in the coming weeks in Sydney and Melbourne.
</body></html>

Malaysian developer SP Setia says 80 percent units sold in luxury Melbourne tower

<html><body>
BRW Rich Lister George Kepper has listed an outer Melbourne development site with expectations of more than $110 million.
The “Eastridge" at <a href="https://property.cbre.com.au/properties/266-268-maroondah-hwy-chirnside-park-vic-3116/" target="_blank">266-268 Maroondah Hwy</a> is a 21.4 hectare mixed-use site along the Maroondah Highway in Chirnside Park, was once due to be home to a new Masters store.
The site has a residential-zoned component spread over  9.55 hectares and a commercial  area on 11.86 hectare. 
The latter includes the headquarters of Kepper's property investment business KFT, in addition to ground floor restaurants, a cafe and bar.
In December 2015, KFT got a permit for a Masters home improvement store and a Dan Murphy's liquor store on the site, but the plan came undone when Woolworths decided to pull the plug on the struggling DIY chain in 2016, according to The Australian Financial Review.
Work on the the Dan Murphy's store is on and is expected to provide a 15-year income stream when completed alongside rental income from the existing commercial buildings. The site also comes with a permit for a 13,400-square-metre large format retail centre.
The properties generate a net passing income of $1.06 million p.a. 
Architects DKO have drawn up plans for a mix of office, retail, high-rise residential, retirement and aged care on the commercial-zoned portion of the site with a large townhouse and medium-density development in the residential portion.
The site is being sold through an an international expressions of interest campaign run by CBRE's Mark Wizel, Julian White, Lewis Tong and Nathan Mufale.
Its offering to the market comes following a number of major infill site sales in Melbourne with the likes of Stockland seeking townhouse development opportunities.
"Development of the site is perfectly timed to cater for strong demand for master planned product in established areas that have vast retail amenity, employment drivers, educational institutions and other infrastructure," said White.
Eastridge is opposite the Chirnside Park Shopping Centre, due to undergo a $52 million expansion and a 176-townhome development called The Enclave.
</body></html>

Rich lister George Kepper lists Melbourne mixed-use site with $110 million expectations

<html><body>
Melbourne’s North West region had the highest weekend auction clearance rate, according to CoreLogic’s latest report.
The property data firm says that 86.6% of its 82 auctions were cleared.
This is followed by Outer East with 77.8% and Inner South with 75.7%.
<a href="https://www.propertyobserver.com.au/images/2017/09/11/Screen%20Shot%202017-09-11%20at%2010.22.29%20am.jpg" target="_blank">Click to enlarge</a>
<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/2017/09/11/Screen%20Shot%202017-09-11%20at%2010.22.29%20am.jpg" alt="">
The South East region had the lowest auction clearance rate with only 67% cleared.
A four bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-keilor+east-126170170" target="_blank">20 College Parade</a>, Keilor East (above) was sold for $1.21 million.
It last sold for $212,000 in 1997.
Similarly a four bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-keilor+east-126140582" target="_blank">11 David Avenue</a>, Keilor East (below) was sold for $1.188 million.
Built in 1960 it last sold in 2012 for $648,000.
<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/2017/09/11/11%20David%20Avenue.jpg" alt="">
</body></html>

Melbourne's North West scores highest weekend auction clearance rate: CoreLogic

<html><body>
<div>There have been many predictions of a Melbourne property crash over the past decade.</div>
<div> </div>
<div>The crash was variously to be triggered by Baby Boomers retiring, China, falling iron ore prices, the mining cliff, spiralling bank funding costs, slowing population growth, apartment oversupply, budget deficits, the loss of the AAA-rating, rising unemployment, higher interest rates, the Ebola virus, and dozens of other things. </div>
<div> </div>
<div>I've been pretty bearish on a few of these points myself - in particular I worried about the overbuilding point a few years back. </div>
<div> </div>
<div>And yet, Melbourne's housing market is powering on harder than ever. </div>
<div> </div>
<div>One of the biggest hurdles in recent months has been how the housing market would respond to additional levies on foreign investors and a crackdown on interest-only loans domestically.</div>
<div> </div>
<div>July's housing finance figures delivered an emphatic answer: record homebuyer commitments of $6.12 billion in a single month, for a crunching +12 per cent year-on-year increase. </div>
<a href="https://www.propertyobserver.com.au/images/2017/09/11/A3.jpg" target="_blank">Click to enlarge</a>
<div class="separator"><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/2017/09/11/A3.jpg" alt=""></div>
<div> </div>
<div>Stock absorbed</div>
<div> </div>
<div>The iron ore price didn't crash in the end, and bank funding costs have remained very low - discounted home loans are now available from just 3.65 per cent, and lenders are busily dropping their rates to entice new business.</div>
<div> </div>
<div>Meanwhile, the Baby Boomer cohort became net buyers of property in search of return on their capital. </div>
<div> </div>
<div>One of the surprising outcomes through this cycle has been the sheer pace of population growth in Melbourne, which just got faster, and faster, and faster, at the expense of Perth, Adelaide, and any number of regional centres. 
</div>
<div>Until this rate of population growth turns down in Melbourne, even record building activity can barely keep pace, and vacancy rates have fallen to their lowest levels in about 7 years. </div>
<div> </div>
<div>Median asking rents for apartments in Melbourne are now about +12 per cent higher over the past 3 years, according to SQM Research, while asking rents for houses have increased by about +11 per cent. </div>
<div> </div>
<div>Unlike Sydney, Melbourne has affordable suburbs, and this is even helping to attract migrants internally from the harbour city. One of the most vociferous property bears of the past decade, Philip Soos of LF Economics, now predicts that the next property correction won't happen for another 9 year, in 2026 (not that I'd reach too much into that). </div>
<div> </div>
<div>Jobs outlook</div>
<div> </div>
<div>The global economy generally looks set for a stronger period ahead, with all regions now delivering growth. </div>
<div> </div>
<div>Australia's economy has added full time jobs at a tremendous pace in 2017. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/11/A1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><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/2017/09/11/A1.jpg" alt=""></div>
<div> </div>
<div>However, that dream run looks set to slow a little as we head in 2018, once residential building slows down, while the inflation figure will be re-weighted for the December 2017 quarter, probably reducing the inflation rate even lower than it already is. </div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>.
</div>
</body></html>

Melbourne

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Melbourne

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News