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 

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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.
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[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

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On average, Melbourne apartments increased in price by $260 per square metre, or three percent over the past year, according to Secret Agent’s latest bulletin.
The buyer's agency said that one bedroom apartments have remained about the same in nominal terms (which means they have fallen in value in real terms) and are now the cheapest apartments at $8,650 per square metre.
All other apartments increased in price, with four bedroom apartments now averaging $11,450 per square metre.
"Not many of these properties get sold each quarter, so prices tend to fluctuate a bit," the report said. 
Three bedroom apartments increased by about $1,000 to $9,400 per square metre in the first three months of 2017.
Two bedroom apartments are also up slightly ($8,900 per square metre), while studios were more expensive than one and two bedroom apartments over the past three months ($9,200 per square metre).
East Melbourne was the most expensive area for apartments so far in 2017 ($11,850 per square metre), selling for more on average than Fitzroy ($11,600 per square metre) and Middle Park ($11,450 per square metre), which was at the top of the table over the first three months of 2016,” the bulletin advised.
Inner West suburbs, including Travancore, Kensington and Flemington continue to be the most affordable regions, with average apartments in these suburbs costing buyers between $6,000 and $7,800 per square metre.
Average prices per square metre of indoor space increased the most in the inner North, with the suburbs Brunswick, Fitzroy, Carlton North and North Melbourne all increasing by over 10 percent since Q1 2016.
The only suburbs analysed which saw average prices decrease were Fitzroy North (11 percent), Carlton (5.5 percent) and Brunswick East (3 percent).
“As the year continues and many more apartment projects are completed in inner Melbourne, we expect apartment prices to continue flatlining or even decreasing," the report said.
"However, larger apartments are still a rarity, as shown by our recent reports on supply and apartment standards.
"This makes it likely that three and four bedroom apartments will remain the most expensive both in terms of average prices and on a square metre basis."
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j.ballantyne1990-6AQqhLzZaK

Melbourne apartment prices increase 3 percent year on year: Secret Agent

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A new property speculative game is emerging in the Melbourne apartment market with some 15,000 units due for settlement around June 30, according to Robert Gottliebsen.
These developments might also have long-term implications for Sydney.
Speculators are buying up multiple blocks of land in outer suburban Melbourne which threatens to be nearly "as deadly as the old apartment game" which led to the 15,000 problem settlements, writes Robert Gottliebsen in The Australian. This also has national implications because because inexperienced banks are in danger of being caught, he adds.
“At the Australian Leadership Retreat on the Gold Coast over the weekend I learned that of the 15,000 vulnerable apartments, in the vicinity of two thirds — mainly the big developments — are owned by major Asian institutions or funded by big Chinese banks,” he said.
Both these groups are taking a long view so developers are not under pressure and will receive their cash. 
But the problem could be triggered by the nearly 5,000 apartments of the 15,000, especially because Australian banks have lowered the amount they will lend to locals wanting to settle and the Chinese can’t get funding from either the local banks or extract money from China.
"We are looking at a $1 billion plus problem. Some of the money has been raised by the non-banking finance channel. But there will still be a substantial shortfall which will hit developers and their bankers," he said.
"One of the danger points in the apartment crisis is that many local and Chinese investors when buying off the plan, say, three years ago bought several units because all that was required on each unit was a 10 percent deposit.
"The idea was that when settlement was due they would sell the surplus apartments at a profit, so reducing the cost of the remaining apartment. But the apartments have not risen in price so all the off-the-plan purchased apartments require full funding, which can’t be arranged from banks."
While the Melbourne apartment market is struggling with a settlement crisis, albeit reduced, Gottliebsen said that outer suburban land developers have rarely seen such strong demand.
He noted some of it was coming from those leaving Sydney to take advantage of the fact that blocks of land can be bought for around $250,000. 
"Significant portions of the Indian community seem to be switching cities because they can enter the outer Melbourne market at a much lower price than Sydney," he said.
"These are genuine buyers who are changing cities. But there is another and even more significant sector of the market that is playing the same game as unit purchasers did three years ago — they are paying a deposit (usually 10 percent) on multiple blocks of land. And sometimes they duplicate the strategy as the developer moves from one stage to the next.
"Under the rules of outer suburban development, a developer gets funding from the bank to constructs roads, sewerage etc once they have sold, say, 60 per cent of the development. But unwary developers are discovering that much of their recent 60 per cent quota of applicants comes from related parties — and sometimes the same cluster of buyers are present at various stages.
"Everything will work well if the land rises in price but if, as happened with apartments, the land does not rise sufficiently in the short time frame then the buyers will not be able to settle on their multiple purchases.
“The developers I know are now vetting all those offering to pay deposits and sign up. And that detailed examination of prospective purchasers caused them to detect the Sydney exodus.
“It’s not big enough to worry the harbour city in the short term but in the US we are seeing many young people leave cities that have become too expensive."
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jonathanchancellor-7SQnKwU6yx

Melbourne unit settlement crisis could impact Sydney: Gottliebsen

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A number of indicators suggest that Melbourne’s strong run of price rises may be nearing an end.
There’s no doubt the Melbourne market overall is strong and currently one of the most buoyant in the nation. Some research sources have Melbourne house price growth ahead of Sydney now, although others in the land of dodgy data still have Sydney leading. 
An analysis by Performance Property Advisory finds that the key indicators, while slightly mixed, suggest that Melbourne is now coming to the end of its growth cycle.
Indicators which point to a moderation in price growth include the firm’s affordability index, the level of rental yields, the high price growth in the past three years relative to longer-term trends and a decline in the influence of foreign investors.
Director David McMillan says: “From an investment point of view, Melbourne is showing all the signs of a market running out of steam.”
He says the firm’s Affordability Index (AI) is currently sitting at 43 percent and historically the Melbourne market has struggled to grow past this point.
“Properties become unaffordable in Melbourne when the market’s AI rises to around 45 percent,” he says. “Melbourne’s AI is hovering around the 43 percent mark, indicating that properties are approaching a natural ceiling. The most likely outcome is a low-growth environment over the next 2-3 years.” 
McMillan says that from 2009 to 2016, incomes rose approximately 15 percent while house prices rose 79 percent.
“The out-performance of house prices against incomes is, in our view, unsustainable and this is a negative for future price growth in Melbourne,” he says.
“It is clear that the three-year price movement is well above trend at 12.96 percent per annum. On that basis it could be said that the Melbourne market is likely to slow down in the short term.” 
McMillan also notes that Melbourne has the second lowest yields among the major cities, with only Sydney lower. “Due to an out-performing median house price, we have seen yields progressively deteriorating, which is a negative for both investors and first-home buyers,” he says. 
The report says total foreign investment in Victoria has quadrupled in the last three years, from around $6.6 billion to $26.6 billion, but is expected to decline in the coming year.
“While we encourage foreign investment, the phenomenal rise has led to over-speculation and over-building in some pockets of Melbourne – the consequences of which are yet to be fully understood by the market.
“Given that the banks have now ceased lending to foreigners, we expect that this number will reduce as much as $10 billion in the 2017 financial year. The large swings in foreign investment have distorted normal market cycles and are expected to lead to increased supply.”
But price decline is not expected, as there are counter-balancing positives for the Melbourne market. They include a high level of proposed infrastructure spending by the federal and state governments, the low rate of unemployment, relatively low levels of stock for sale, a low “Days On Market” indicator, and strong levels of population growth (both existing and projected future rises). 
“Victoria has gone from being a loser from Net Interstate Migration in the 1990s, to a fairly neutral position during the 2000s, to being a winner since 2010, which has been a key factor of the price growth we have seen since 2009.”
Performance Property does note, however, that there has been a level of oversupply in B and C grade housing and apartment stock.
It recommends that investors avoid the off-the-plan apartment market and I wholeheartedly endorse that. “This market is showing no value and price falls in the short term are possible,” McMillan says. “There are no fundamentals that support price growth in the short term. 
But he does see some value opportunities in the Lifestyle and Middle Ring housing markets. 
“This is really a tale of two markets, with house-and-land packages on the metro fringe and inner-city off-the-plan property over-supplied, while the established school belt areas of Melbourne are in short supply,” he says.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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terryryder-YECXbqmri2

Melbourne’s strong run of property price rises may be ending

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The total number of new listings in Melbourne has increased, according to CoreLogic’s latest report.
The property data firm says new listings in Melbourne are up by 6.4 percent over the same time last year to 8,010.
However the number of total listings has declined slightly by 0.6 percent to sit at 28,788.
<a href="https://www.propertyobserver.com.au/images/2017/05/22/Screen%20Shot%202017-05-22%20at%2012.19.52%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/2017/05/22/Screen%20Shot%202017-05-22%20at%2012.19.52%20pm.jpg" alt="">
This is in contrast to Perth where the total number of new listings have declined by 5.1 percent compared to the same period last year.
A month ago there were 7400 new listings across Melbourne.
 
<a href="https://www.propertyobserver.com.au/images/2017/04/10/Screen%20Shot%202017-04-10%20at%2011.48.24%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/2017/04/10/Screen%20Shot%202017-04-10%20at%2011.48.24%20am.jpg" alt="">
A two bedroom apartment at <a href="https://www.realestate.com.au/property-apartment-vic-melbourne-125524614" target="_blank">G17/61 Mackenzie Street</a>, Melbourne (above) has recently been listed for between $760,000 to $830,000.
Similarly a three bedroom house at <a href="https://www.realestate.com.au/property-house-vic-attwood-125524294" target="_blank">56 Ardlie Street</a>, Attwood (below) has recently been listed for an estimated price reserve of between $700,000 to $750,000.
<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/2017/05/22/56%20Ardlie%20Street.jpg" alt="">
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Melbourne new listings spurt to 8,010: CoreLogic

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Melbourne’s industrial markets are likely to benefit from ongoing economic and population growth, strong retail trade and proposed infrastructure projects, according to Cushman &amp; Wakefield's latest report.
Given the strong fundamentals and limited available stock in general, competition to secure investment assets will remain strong over the near term which may prompt further, though modest, yield compression, the report advised.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%209.30.26%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/2017/04/18/Screen%20Shot%202017-04-18%20at%209.30.26%20am.jpg" alt="">
"Melbourne’s occupier market remains active, driven by manufacturing, logistics, and, postal and warehousing sectors.
Available space in the East/South East markets remains tight, as such most of the larger scale leasing activity has been in the Western market.
Anmar and Isuzu trucks have most recently committed to a purpose-built facility (37,000 sq m) in DEXUS’ Industrial Estate on Foundation Road, Laverton North," the report stated.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%209.30.37%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/2017/04/18/Screen%20Shot%202017-04-18%20at%209.30.37%20am.jpg" alt="">
"In reflection of limited vacant space, prime net face rents in the East and South East markets have shown strongest rental growth, increasing by 11% and 12% over the last six months to $90-$100 and $85-$95 per sq m respectively for assets &lt;4,000 sq m and &lt;6,000 sq m.
Melbourne industrial investment totalled $200m in Q1 2017, a considerably stronger result than the $95m recorded in Q1 2016," the report commented.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%209.30.53%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/2017/04/18/Screen%20Shot%202017-04-18%20at%209.30.53%20am.jpg" alt="">
Rolling annual investment volume increased 12% q-o-q, largely as a result of investment in the West being above the longer-run average over the past twelve months.
"The West recorded the largest investment volume for the second consecutive quarter, with much of the $115m in Q1 underpinned by Deutsche Asset Management’s acquisition of 45 Fulton Drive, Derrimut for $36.1m, coupled with Cache Logistics Trust’s purchase of 217-225 Boundary Road, Laverton North for $22.2m.
In light of strong investment into the West, prime yields in this market have tightened 25-50 bps over the past six months to 6.25%-6.75%," the report stated.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%209.31.02%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/2017/04/18/Screen%20Shot%202017-04-18%20at%209.31.02%20am.jpg" alt="">
However, yields remain tightest in the South East, reflecting strong competition for limited quality stock.
 
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Ongoing economic growth contributing to Melbourne's industrial market

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A standalone retail investment with redevelopment potential in Melbourne’s affluent south-east suburb of Mount Waverley has sold at auction for a yield of 2 percent yield.
The property at 6 Andrew Street fetched $616,000 at the on-site auction — well above the reserve price — and was snapped up by a local investor.
The selling agent was Paul Rizzo of Ray White Commercial Oakleigh.
Rizzo said the sale price was more than $160,000 above the vendor’s reserve.
“Boasting an exceptional tenant, this secure investment property trading as a laundromat is currently returning rent of $12,622 per annum on a long-term lease,” he said.
The building is on a land area of 188 sqm with potential for further development subject to council approval.
“Mount Waverley’s rising status as one of Melbourne’s fastest growing and prestigious south-eastern suburbs ensured this property appealed to a range of buyers.”
The five-year leased commenced in 2014 with two further five-year terms. The property was on the market for 39 days, RP Data showed.  
<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/2017/05/22/MountWaverley1.jpg" alt="">
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Mt Waverley retail property sells above reserve at 2 percent yield

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Weekend auction listings in Melbourne almost surpassed the May record set in 2014, according to Domain's Andrew Wilson.
He said on Saturday 1120 homes were listed to go under the hammer, just below the record May weekend auction listings of 1147 set in 2014.
"This was well ahead of the previous weekends 933 auctions and also well ahead of the 759 listed over the same weekend last year," he said.
"In a sign that demand is strong as ever, the clearance rate was 79.7 percent – higher than the 78.3 percent recorded the previous weekend and remaining well ahead of the 73.8 percent recorded over the same weekend last year.
Next weekend will provide another record-level May Saturday of auctions with again well over 1100 listings likely.
"This weekend’s auction result follows the ABS reporting that seasonally adjusted national retail sales fell again over March following the fall recorded over February. This was the first consecutive monthly decline in national retail turnover since November 2012 and reflects the impact on consumers of record low incomes growth, higher unemployment and significant under-employment.
"Melbourne’s northern suburbs produced another bullish result to again lead the regions with a clearance rate of 86.8 percent.
Next highest was the inner east with 82.6 percent followed by the south east 82.1 percent, the north east 82.0 percent, the west 81.4 percent and the highest reported sales at 127, the outer east 78.5 percent, the inner city 77.4 percent and the outer south with an auction clearance rate at the weekend of 77.3 percent."
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Melbourne weekend auctions nearly break listings record

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Over the last 5 years, yields have dropped by 0.42%, from 3.06% in 2012 to 2.64% in 2017, according to Secret Agent’s latest bulletin.
“During this period, median house prices have increased by 38% (9% p.a.), compared to only an 11.8% increase in weekly rents (2.88% p.a.).
“On average, median weekly rents are between $500 and $700 for most suburbs.
“Sale prices tend to fluctuate significantly according to suburb.
“Suburbs with lower median prices tend to have higher yields, as weekly rent is mostly consistent across all regions,” the bulletin stated.
Secret Agent stated that high and low yields are not concentrated in any particular region of inner Melbourne.
“Collingwood, Cremorne and West Melbourne had the highest median yields in 2016/17 at 3.69%, 3.32% and 3.26%, respectively.
“Median prices were well below the $1 million mark.
“Burnley, East Melbourne and Alphington had the lowest median yields at 1.35%, 2.07% and 2.31%, respectively.
“Median prices were all above $1.3million.
“Sale price is strongly, negatively correlated with yield (-47%),” the bulletin commented.
Yield is more dependent on purchase price rather than rental income according to Secret Agent.
“Yields are even lower for larger properties, as sale price increases faster than median rent.
“In 2017, 2, 3 and 4 bedroom homes can expect to yield 2.72%, 2.61% and 2.52%, respectively.
“All three types have had the lowest yields since 2012.
Investors paying high prices for properties are even more reliant on capital growth to increase their returns,” the bulletin stated.
A three bedroom house at <a href="https://www.realestate.com.au/property-house-vic-moonee+ponds-420648018" target="_blank">5A Wilson Street</a>, Moonee Ponds (above) is available for rent from $575 per week.
Similarly a two bedroom apartment at <a href="https://www.realestate.com.au/property-apartment-vic-melbourne-421145570" target="_blank">2502/285 La Trobe Street</a>, Melbourne is available for rent from $530 per week.
<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/2017/05/18/2502_285%20La%20Trobe%20Street.jpg" alt="">
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Melbourne rental yields drop while median prices rise

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The apartment market for Inner City Melbourne has started to soften in the first quarter of 2017, according to Herron Todd White’s latest report.
The property valuation firm says that most inner city suburb median unit prices have dropped in the last quarter.
“According to REIV reports, most inner city suburbs have seen drops in median unit prices since last quarter, with Docklands median unit prices falling by 2.3%, Southbank experiencing a 1.8% drop and South Yarra seeing a 0.7% decline.
“There is growing concern regarding the oversupply of inner city apartments which has been well documented by the media in addition to being recognised by the Reserve Bank of Australia who have issued warnings that current high levels of supply may constrain growth in prices and rents in some market segments.
“It is anticipated that the recent implementation of tighter lending policies on both foreign purchasers and investors will cause the apartment market to further soften in addition to increasing settlement risk for developers,” the report stated.
Herron Todd White says that the prestige market in Melbourne is still going strong.
“The current state of the prestige market is still strong.
“The demand for property is outweighing the supply of properties for sale.
“The most in-demand properties are those with large land holdings or properties that can be redeveloped or knocked down without any planning restrictions.
“Other key factors are the continuing low interest rate environment, proximity to the CBD and population growth,” the report advised.
Kew, Balwyn North and Malvern are among the top suburbs for prestige properties according to Herron Todd White.
“The strong prestige market is highlighted in suburbs such as Kew, Balwyn North and Malvern.
“As of March 2017, the median house prices for these suburbs were $2.165 million, $1.925 million and $3.01 million respectively, with a quarterly change of 11%, 11.2% and 24.6%.
<a href="https://www.propertyobserver.com.au/images/2017/05/19/Screen%20Shot%202017-05-19%20at%209.44.52%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/2017/05/19/Screen%20Shot%202017-05-19%20at%209.44.52%20am.jpg" alt="">
“Highlighting the current state of the market, on the 25 February 2017, <a href="https://www.realestate.com.au/sold/property-house-vic-malvern-124595406" target="_blank">17 Spring Road</a>, Malvern (above) sold for $5.075 million.
“The auction lasted 60 seconds with a total of 17 bids. The reserve was $4.3 million.
“The key factors that could result in the prestige market slowing down are an increase in interest rates, a bearish equities market and overall loss of confidence in the market,” the report stated.
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South Yarra joins inner city Melbourne apartment market softening: HTW

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An annual fundraising event held by The St Vincent de Paul Society (Vinnies), business leaders are invited to sign-up to lend their voices and their networks in support of raising $700,000 for the Vinnies Soup Vans and other volunteer services that help to alleviate poverty and prevent homelessness.
The Sleepout will be held overnight at 6:00pm Thursday 22nd June until 7:00am Friday 23rd June at the University of Melbourne’s Parkville Campus inside the South Lawn Underground Carpark.
Participants will sleep on a piece of cardboard for the night, given a modest dinner by the Vinnies Soup Van volunteers, and invited to speak face-to-face with people experiencing poverty and homelessness in a series of conversation corners.
Eight members of PhilipWebb’s Management Team including General Manager of Sales Anthony Webb will be participating in the event.
“We pride ourselves on the strong ties we have with our local community.
Our staff have recently volunteered for the Vinnies Soup Van initiative under the guidance of the generous volunteers at The St Vincent de Paul Society.
This experience was an extremely enriching one for all staff involved. We are proud and excited to continue this association by joining the 2017 CEO Sleepout,” he said.
“It is a sad reality that over 725,000 Victorians are living below the poverty line with many descending into crisis and sleeping rough on the streets.
Every little bit helps and we would love the public’s support to reach our goal”.
Contributions can be made towards PhilipWebb’s target at the following link: <a href="https://www.ceosleepout.org.au/team/philipwebb-real-estate/" target="_blank">https://www.ceosleepout.org.au/team/philipwebb-real-estate/</a>
Alternatively, those wishing to participate either individually or as part of a senior management team can register at <a href="https://www.ceosleepout.org.au" target="_blank">www.ceosleepout.org.au</a>
PhilipWebb Real Estate has been a market leader in Melbourne’s eastern suburbs for more than 45 years.
With Philip Webb still playing a hands-on role in his family-owned business, it is now one of Victoria’s largest non-franchise firms, specialising in residential and commercial sales, auctioneering, property management and investment.
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