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.
</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>
Leased space to the education sector in Melbourne's CBD in 2016 rose 200 percent on the previous year with increases in land taxes hitting stock levels, putting upward pressure on rents, according to real estate firm Savills.
The trend is likely to continue in 2017, according to education sector specialist and Savills director Mathew Kent. 
Savills is currently dealing with more than 15 leasing requirements for in excess of 60,000 sqm.
Some of the educators in the market include Monash University (40,000sqm), Think Education (2000sqm), Baxter (3000sqm), and RMIT (10,000sqm).
The total 39,840 square metres leased (deals over 500sqm) in 2016 included 14,222 square metres of prime space as institutions, including the top universities, were forced, in some cases, to take higher grade accommodation in a market limited by the availability of education specific space.
Kent said withdrawal of secondary buildings for residential conversion, a lack of 9B accredited buildings, fit-out costs, and competitors in the same building, were all issues which worked to limit the amount of space available to educators.
"For these reasons the availability of suitable accommodation to meet the demand from education users in Melbourne is now at levels where landlords have been able to demand higher rental and more attractive terms for suitable accommodation,’’ Kent said.
He said the increasing demand for limited space had seen rents rise from a range of $300 sqm to $350 sqm, to $550 sqm plus over the last five years with a corresponding fall in incentives.
Kent said the significant hike in land tax had also had been important in reducing available space.
"The doubling of land tax in low rise buildings may render the current use of a building, in terms of its tenancy profile and rental returns, unviable for some landlords and that has forced them, in some cases, to sell to residential developers,’’ Kent said.
 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td colspan="4" valign="top" width="475">
Select Central Melbourne Education Leases to December 2016
</td>
</tr>
<tr>
<td valign="top" width="50">
Date
</td>
<td valign="top" width="160">
Property
</td>
<td valign="top" width="79">
NLA (sq m)
</td>
<td valign="top" width="185">
Tenant
</td>
</tr>
<tr>
<td valign="top" width="50">
Mar-16
</td>
<td valign="top" width="160">
277 William St
</td>
<td valign="top" width="79">
960
</td>
<td valign="top" width="185">
Danford College
</td>
</tr>
<tr>
<td valign="top" width="50">
Jul-16
</td>
<td valign="top" width="160">
553 St Kilda Rd
</td>
<td valign="top" width="79">
8,052
</td>
<td valign="top" width="185">
Monash University
</td>
</tr>
<tr>
<td valign="top" width="50">
Aug-16
</td>
<td valign="top" width="160">
399 Lonsdale St
</td>
<td valign="top" width="79">
892
</td>
<td valign="top" width="185">
Chisholm Institute
</td>
</tr>
<tr>
<td valign="top" width="50">
Aug-16
</td>
<td valign="top" width="160">
700 Collins St
</td>
<td valign="top" width="79">
2,682
</td>
<td valign="top" width="185">
Open Universities
</td>
</tr>
<tr>
<td valign="top" width="50">
Aug-16
</td>
<td valign="top" width="160">
168 Exhibition St
</td>
<td valign="top" width="79">
3,772
</td>
<td valign="top" width="185">
Acknowledge Education
</td>
</tr>
<tr>
<td valign="top" width="50">
Sep-16
</td>
<td valign="top" width="160">
727 Collins St
</td>
<td valign="top" width="79">
4,500
</td>
<td valign="top" width="185">
Deakin University
</td>
</tr>
<tr>
<td valign="top" width="50">
Sep-16
</td>
<td valign="top" width="160">
360 Collins St
</td>
<td valign="top" width="79">
4,000*
</td>
<td valign="top" width="185">
La Trobe University
</td>
</tr>
<tr>
<td valign="top" width="50">
Sep-16
</td>
<td valign="top" width="160">
247 Collins St
</td>
<td valign="top" width="79">
1,664
</td>
<td valign="top" width="185">
Discover English
</td>
</tr>
<tr>
<td valign="top" width="50">
Nov-16
</td>
<td valign="top" width="160">
376 Bourke St
</td>
<td valign="top" width="79">
943
</td>
<td valign="top" width="185">
Brighton Institute of Technology
</td>
</tr>
<tr>
<td colspan="4" valign="top" width="475">
Source: Savills Research                                                   *Expansion on multiple floors
</td>
</tr>
</tbody></table>
In the most recent deals Melbourne University has taken 6500sqm at 333 Exhibition St, Cambridge (7200sqm at 108 Lonsdale Street), and Charles Sturt University (3000sqm at 601 Bourke Street).
Survey author, Savills’ Associate Director Research &amp; Consultancy, Monica Mondkar, said the education sector accounted for nearly 21 per cent of the 191,484 square metres of office space leased by the Government &amp; Community sector in 2016.
Ms Mondkar said the latest Department of Education figures revealed there were 554,179 full-fee paying international students in Australia on a student visa in 2016 representing a 10.9 per cent increase on 2015 with new enrolments in Victoria up by 12 per cent.
The average annual enrolments growth rate has been 6.5 per cent per year over the last ten years.
She said the Victorian Governments’ $31.9 million investment over four years in the international education sector announced in the 2016/2017 budget would likely underpin further rises in student numbers.
"Student numbers have been increasing year on year and, as Australia’s third biggest export at circa $20 billion, there is little doubt the Melbourne CBD education market will continue to grow and that is reflected in student choice with Melbourne’s international student population at more than 30,000*,’’ Ms Mondkar said.
According to the QS Best Student Cities 2016 index – a ranking of the world’s leading urban destinations for international students by university ranking, affordability, student mix, desirability, and employer activity – Melbourne ranked second behind Paris with Tokyo third followed by Sydney in fourth place.
QS Best Student Cities 2016 
<table style="width: 214px; height: 192px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="170">
Ranking
</td>
<td valign="top" width="163">
City
</td>
</tr>
<tr>
<td valign="top" width="170">
1
</td>
<td valign="top" width="163">
Paris
</td>
</tr>
<tr>
<td valign="top" width="170">
2
</td>
<td valign="top" width="163">
Melbourne
</td>
</tr>
<tr>
<td valign="top" width="170">
3
</td>
<td valign="top" width="163">
Tokyo
</td>
</tr>
<tr>
<td valign="top" width="170">
4
</td>
<td valign="top" width="163">
Sydney
</td>
</tr>
<tr>
<td valign="top" width="170">
5
</td>
<td valign="top" width="163">
London
</td>
</tr>
<tr>
<td valign="top" width="170">
6
</td>
<td valign="top" width="163">
Singapore
</td>
</tr>
<tr>
<td valign="top" width="170">
7
</td>
<td valign="top" width="163">
Montreal
</td>
</tr>
<tr>
<td valign="top" width="170">
8
</td>
<td valign="top" width="163">
Hong Kong
</td>
</tr>
<tr>
<td valign="top" width="170">
9
</td>
<td valign="top" width="163">
Berlin
</td>
</tr>
<tr>
<td valign="top" width="170">
10
</td>
<td valign="top" width="163">
Seoul
</td>
</tr>
</tbody></table>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Education leasing up 200 percent on previous 12 months: Savills

<html><body>
GUEST OBSERVER
You may have heard that Victoria announced a new tax this month that will cost landlords $20 million a year, and that's just in the beginning.
Many observers believe that investors will be squeezed over time by increasing tax rates that raise the state government's take.
How does this new tax affect you as a property investor? Let's look at it closely.
First, here are the details of the tax:
• It will be charged every calendar year from January 1, 2018, together with your land tax.
• It will be imposed on houses and apartments in the inner and middle suburbs of Melbourne that lie vacant for more than six months per year.
• It will cost you 1 percent of your property’s capital improved value. For example, if the capital improved value is $500,000, you will have to pay $5,000 in tax every year.
• There are exemptions: holiday homes (if your principal place of residence is in Australia), a city unit for work purposes, properties in deceased estates and homes subject to legitimate temporary absences (e.g. medical care, overseas appointments).
• You can avoid this tax by selling, moving into or renting out your vacant Melbourne property.
Is Victoria a safe place to invest?
The biggest question raised by this new tax, which is just the latest strand of red tape strewn across Melbourne’s CBD in recent years, is whether the state is any longer a safe place for property investors to put their money.
Property investment is almost always a years-long commitment to a location. Time can expose you to many unforeseen risks, so the smart investor tries to avoid at least those that seem obvious.
And it does seem obvious that Victoria's leaders will impose more taxes on property investors in the years to come. The Australian Financial Review reckons that the latest move is "just the start of a push by the state to collect more revenue from property owners."
True, most of these fees and taxes have targeted foreign investors, but this latest levy makes no distinction between offshore and local absentee owners. 
Who’s Next?
Pickpockets operating on a crowded street never limit themselves to just one wallet, but pick as many as they can. Just so, governments pursuing new revenue never limit themselves to taxing —as in the case of foreign buyers— just the smallest share of those within their reach. Not when there is a far richer wallet to be picked. Australian property investors: that wallet belongs to you.
What's most puzzling about this behaviour is that property investors have contributed much to Victoria. You have added hundreds of millions of dollars and tens of thousands of jobs to the local economy. By purchasing units off the plan, you have made possible the construction of development projects that otherwise would have remained nothing more than architectural drawings. All this building has provided tens of thousands of new homes for Victorian residents.
Worst of all is the government's shallow claim that housing affordability is its real goal. Victoria’s recent development boom was made possible, in large part, by property investors. The most powerful thing the state government could do for first home buyers would be to encourage the very property investors who make new construction possible.
The new residences that investors create give homes to renters and provide opportunities for new buyers to grasp the property ladder and climb onto the first rung. 
Unfortunately, the state is taking exactly the opposite tack.
Real estate agents can profit
While investors may be dismayed, real estate agents can profit from the new vacant property tax. It represents a golden ticket for real estate agents who, due to their deep local knowledge, may be aware of which residences are vacant. I'm sure smart agents are already calling and emailing owners of vacant property to help them to sell or lease up the homes for them.
Perhaps most puzzling of all is that Victorian Treasurer Tim Pallas says the State plans to use utility usage to determine which homes are left empty. At Bunnings right now you can buy timers that give you precise control of both water and electrical usage in your property. Is the State so naive as to impose a tax that anyone can foil by installing a couple of $20 electronics? Installing a timer on one faucet and another on a single outlet seems likely to ensure an owner’s utility usage falls within the minimum range.
Gavin Norris is head of Australia for Juwai.com, the No. 1 Chinese international property portal and can be contacted <a href="https://list.juwai.com" target="_blank">here</a>.
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What Victoria’s new vacant property tax means to you: Juwai's Gavin Norris 

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GUEST OBSERVER
If a heatwave hit Melbourne and the power blacked out, most apartment buildings would bake, with indoor temperatures exceeding international health standards, according to a new <a href="https://www.thrive-research.com.au/wp-content/uploads/2017/02/Living-Well-Report-Final-for-issue-080317.pdf">a</a>nalysis that calls for Australia to adopt standards to protect occupants against heat stress.
Researchers at the University of Melbourne modelled six common apartment designs in the city and all six failed standards for new buildings set in France, the UK, Germany and the US. There are no health standards to ensure against heat stress in the Building Code of Australia.
Lead researcher and construction scientist Mr Chris Jensen, from the Melbourne School of Design, said the results are a wake-up call given the risk of heatwaves. He says it’s time Australia catches up with other countries to adopt similar standards for new buildings, and he says action is needed to encourage the retrofitting of existing buildings.
He suggests that just as all buildings have energy ratings, the government could introduce “summer comfort” ratings on apartments to reduce heat stress for occupants and incentivise owners to upgrade their buildings.
“The research highlights to the public that heat stress inside apartments is a real issue and that we need to do more to control for this, not only in new buildings, but also for existing buildings,” said Mr Jensen. 
“It isn’t a new problem, but climate change science expects more frequent and possibly longer heatwaves, so the health risk is only going to increase.
“What we need to be concerned about are existing apartment buildings that lack air conditioning and are susceptible to overheating, but we also need to be concerned about most buildings should a heat wave coincide with a power black out which would eliminate all air-conditioning.”
Such an “event” is far from fanciful given the blackouts that hit South Australia in February 2017 and warnings of possible load shedding in Sydney during the recent NSW heatwave.
France introduced “summer comfort” standards after the 2003 heatwave there estimated to have caused over 14,800 deaths, with the elderly particularly vulnerable. The French standards require that without the use of air conditioning, building design should ensure that temperatures inside rooms don’t exceed 28 degrees for more than 3 per cent of the year - equivalent to 260 hours.
The researchers modelled how six common Melbourne apartment designs could cope with excessively high temperatures by testing them against the heatwave conditions that hit Melbourne in January and February 2009, which included the Black Saturday bushfire disaster of 7 February. That heatwave included three straight days when the temperature topped 43 degrees, while nighttime lows exceeded 25 degrees. 
They also chose a worst-case scenario by modelling west-facing apartments that are most exposed to the sun. All six sample apartments failed the four international standards they were tested against.
“We modelled both old and new apartment designs, including an example of a recent and best practice design, so it is fair to say that most other west-facing apartments in Melbourne would fail these international standards under these conditions, and quite possibly those in other orientations,” Mr Jensen says.
Some common reasons why the apartment designs failed included:
<ul class="ul1">
<li class="li9">Single glazed windows with poorly insulated frames</li>
<li class="li9">Lack of insulation generally</li>
<li class="li9">Poor natural ventilation</li>
<li class="li9">Aged weather stripping that provided only moderate draft protection</li>
</ul>
Mr Jensen says it is possible that under a standard tailored to the Australian climate more buildings would pass, since it could reflect the fact that locals are more accustomed to hotter conditions. But he warns it is still likely many existing apartments wouldn’t meet a new standard. He says current building standards governing energy use only indirectly address “summer comfort” since they aim to reduce cooling energy requirements. He says more explicit heat stress standards, which measure a building differently, are needed to ensure designs directly took account of the health risks.
“As a priority we need to introduce into the building code our own ‘summer comfort’ standards that are tailored to our own climate, and simultaneously efforts to retrofit buildings to reduce over heating need to be prioritised on high risk cases.” He said such high risk cases include west facing apartments with lots of glass and buildings where vulnerable people such as the elderly may be housed.
He says introducing standards for new buildings would be relatively easy and wouldn’t impose significantly higher costs on building design and construction. The big problem, he says, will be in funding the retrofitting of existing buildings. He says owners and governments would likely be reluctant to meet the cost of widespread retrofitting.
A more effective short-term solution might include an apartment heat stress rating system, to alert potential buyers and occupants about the comfort of the apartment.
“This would strategically drive the market to improve performance,” says Mr Jensen.
“It is unlikely many building owners will be prepared to invest perhaps millions of dollars in retrofitting unless they feel they have to. But a comfort rating would change the equation because occupants will be able to compare the rating on buildings, giving owners an incentive to ensure their buildings are attractive.”
Beyond standards and designs, Mr Jensen says there needs to be greater awareness among occupants of what they can do in heatwave conditions to keep themselves comfortable. He says educating occupants to open windows and balcony doors is an effective way of allowing buildings to cool naturally, at no cost. He also suggests that people close off a room during a heatwave to keep it relatively cooler as a place to retreat to. People can also make decisions to leave their apartments and spend time at air-conditioned locations such as shopping centres and cinemas.
“Just as the government has a bushfire advisory program, it would also be a simple strategy to provide advice for what to do during heat waves,” he says.
To improve existing buildings, the study found the easiest and most effective strategies for apartments include:
<ul class="ul1">
<li class="li9">improving ventilation, both in the fabric of the apartment and operated by occupants (like opening a window)</li>
<li class="li9">using external heat-reflective coating and paint</li>
<li class="li9">installing appropriate shading.</li>
</ul>
Andrew Trounson, is senior journalist, Pursuit, University of Melbourne and can be contacted <a href="https://pursuit.unimelb.edu.au/articles/contact-the-pursuit-team" target="_blank">here</a>.
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Why Melbourne apartments are failing the heat stress test

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The Inner South region of Melbourne had the highest auction clearance rate over the weekend, according to CoreLogic’s latest report.
The property data firm says that out of the 14 auctions known in the Inner South 92.9% were cleared.
This is followed by the Inner East with 92.5% and the Mornington Peninsula with 89.5%.
<a href="https://www.propertyobserver.com.au/images/2017/03/13/Screen%20Shot%202017-03-13%20at%2011.08.13%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/2017/03/13/Screen%20Shot%202017-03-13%20at%2011.08.13%20am.jpg" alt="">
The Inner region had the lowest auction clearance rate with only 73.1% of auctions cleared.
A two bedroom apartment at <a href="https://www.realestate.com.au/sold/property-apartment-vic-port+melbourne-124734366" target="_blank">14/120 Princes Street</a>, Port Melbourne (above) was recently sold.
Similarly a three bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-newport-124740438" target="_blank">1/19 Percy Street</a>, Newport (below) was sold for $1.05 million.
<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/2017/03/13/1_19%20Percy%20Street.jpg" alt="">
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Melbourne's Inner South region scores highest auction clearance rate: CoreLogic

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A warehouse and office has just been pre-sold by Frasers Property Australia to property fund manager Primewest in Melbourne’s Derrimut for $24 million.
The $23,000 sqm warehouse is on Foxley Court in the West Park Industrial Estate and is on a three-year lease.
The development will comprise a new warehouse spread across 22,500 sqm, a 500 sqm office and 67 car spaces. It is expected to be completed in the fourth quarter of 2017. 
The deal flow in Melbourne’s west had been strong within the last 12 - 18 months, said Anthony Maugeri, general manager Southern Region C&amp;I for Frasers Property.
“Frasers Property will provide a three-year rent support deed to Primewest with construction and marketing of the building commencing shortly,” he said.
 “This is a great opportunity for the businesses to partner in a growing area that lacks quality warehouse investment opportunities. New business partners are also seeking flexible ownership structures and product creation which is what we are delivering.”
Primewest director David Schwartz said the industrial property market was currently one of the most buoyant and sought after in Australia and Primewest was investing heavily in the industrial sector across several states. 
Primewest manages a portfolio in excess of $2.1 billion.
“The West Park Industrial Estate was particularly appealing as there was significant latent demand from prospective tenants,” he said.
The deal was negotiated by Colliers International’s Tony Iuliano.
The West Park Industrial Estate is well connected - the Deer Park Bypass is within one kilometre, providing access to the Western Ring Road, Tullamarine Freeway and Calder Freeway while the Port of Melbourne is within 17 km. 
Major occupiers in the 310 hectare estate include CEVA Logistics, Schenker, Toll, Goodyear, Mitre 10 and Australia Post.
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jonathanchancellor-7SQnKwU6yx

Industrial property in Melbourne's Derrimut presold for $24 million

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A studio apartment at Melbourne has been sold for $187,700, the most affordable sale in Melbourne over the weekend.
Located at <a href="https://www.realestate.com.au/property-apartment-vic-melbourne-124745378" target="_blank">7/9-13 Anthony Street</a>, the property is near the Queen Victoria Markets.
The 25 sqm offering has been fully renovated.
Set on a quiet leafy city street, it was marketed as suitable for investors or someone looking for a private and edgy city base.
It has stained floor boards and white walls throughout the area with a New York loft style bed.
Kitchen features brand new appliances including modern cabinetry, ample storage and French doors that separate the kitchen from living quarters.
<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/2017/03/12/7_9-13%20Anthony%20Street-2.jpg" alt="">
The updated bathroom in the 1995 complex has modern tiles with neutral tones throughout.
Trams, Melbourne central shopping precinct, Queen Victoria Markets and other amenities are all within close proximity.
It last sold in 2007 for $120,000 and $95,000 in 2002.
The property was offered through Purplebricks agent Andrew Leung who had a price guide of $175,000 to $185,000.
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Purplebricks sell Melbourne studio apartment for $187,700

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Melbourne will hold just over 250 auctions this weekend, down from last Saturday’s 1182 listings and down from the 342 auctions for the same weekend last year according to Domain's Andrew Wilson.
He said the west suburban region of Melbourne will again host the most number of auctions on Saturday with 62.
"This is followed by the outer east 41, the north 29, the north east and the inner east each with 28, the inner city and the south east each with 22 and the inner south with 19 auctions listed on the weekend," he said.
"The most popular suburb for auctions this weekend in Melbourne is Craigieburn with 8 followed by Hopper Crossing 6, Glen Waverley, St Albans and Burwood each with 5 and Reservoir, Glenroy and Brunswick East, Melbourne and Altona North each with 4 auctions each on Saturday.
"Melbourne recorded a clearance rate of 80.6 percent last Saturday which was slightly lower than the 82.4 per cent recorded the previous weekend but remained well ahead of the 75.4 percent recorded over the same weekend last year.
"Despite the lower result, Melbourne has now recorded consecutive weekend rates above 80 per cent for the first time since June 2015 – a clear indication of the underlying strength of the local market."
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Melbourne weekend auctions nudge over 250: Andrew Wilson

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Pacific Epping Shopping Centre in Melbourne’s northern suburb of Epping has announced expansion plans, as work is set to start on a new Costco and Quest Apartment Hotel, both set to open in early 2018. 
Both organisations will help to service demand of the growing population of the outer Northern suburbs, as population projections are set to double that of Melbourne (3.9% vs 1.8%) from 2014 - 2019. 
Construction for both Costco and Quest will commence in mid-2017 and complete in mid-2018. 
Pacific Epping is the fourth Victorian site chosen by Costco (in nine years), with a 13,788 sqm store set to facilitate a catchment of 1 million people. 
The new Quest Apartment Hotel will comprise 96 apartments and be adjacent to a 1,300 sqm precinct, mostly restaurants. 
The expansion of the restaurant precinct will build on the buzz of Pacific Epping’s busy Urban Diner. The apartment hotel will float above the restaurants which will enjoy double height spaces. 
Steve O’Brien, director-Planning and Major Projects at the City of Whittlesea, says the development will create jobs and help the growth of Whittlesea.
Graham Terry of Pacific Centres said the introduction of both entities will bring an enhanced retail offer and increased activity to the site. “With Costco, we are proud to be able to offer an international retailer offering for the growing numbers in our trade area and with Quest Apartment Hotels, the nearest hotels are Tullamarine, Preston and Bundoora, so the demand is evident.” 
Costco Australia managing director Patrick Noone said it would be the fourth Costco warehouse in Victoria. 
Zed Sanjana, chief executive officer from Quest Apartment Hotels added, “Quest’s commitment to a new apartment hotel in Epping continues to demonstrate our enduring focus on providing premium accommodation for business travellers.”
 
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Pacific Epping reveals plans for Costco warehouse and Quest apartment hotel

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Not too long ago, land size and location were considered to be two major factors in choosing a home, according to Secret Agent’s latest report.
People wanted big yards to play and entertain in.
The more land the better, because the focus was on the value of land rather than the property itself.
For many people these priorities have changed.
Inner city living allows us to access parks and gardens easily when we want to, without the hassle of keeping a yard in pristine condition.
Kitchens have also become a popular place for entertainment, replacing the role traditionally held by the backyard.
Today, it seems the more land a property is on, the more of a burden it is.
Maintaining a garden 365 days a year is hard work.
At the same time, Secret Agent has noticed a shift in the desires of our clients over the past few years.
They are becoming more specific in the amount of internal space they need for the rooms they use regularly.
The number and sizes of bedrooms, number of bathrooms and size of kitchens and living areas tend to be known from the outset.
Land size and backyard space are less important, particularly if they are not looking to renovate.
As long as there is some kind of outdoor area, there isn’t much of a preference for how big it should be.
Market value of property in particular suburbs is often reported and analysed on a cost per square metre rate.
This is a good metric if land is important.
However, now that some people are caring more about internal usable space, not land size, this metric can be misleading.
Secret Agent created the index to reflect the shifting values of inner city buyers, by revealing the price per square metre of indoor space.
Purchasers and local experts can use it to understand the true value of any property in the inner city suburbs.
This can be achieved by comparing the indoor area of a property to our benchmarks of average price per square metre by suburb.
“Our report will provide an overall price per square metre summary of terraces and townhouses by suburb; highlight the most and least affordable suburbs; and take a closer look at the cost of each room in a house. Finally, an update to our apartment index will be presented,” the report stated.
To create the index, 705 terrace, 232 townhouse and 1303 apartment sales across 31 suburbs in inner Melbourne were analysed.
All sales took place between January and December 2016. Each floor plan was manually measured to ensure accuracy, and floor areas in marketing copy were disregarded.
A terrace was defined as a house (freestanding, attached or semi-detached) of Victorian, Edwardian or Federation style.
These are mostly single storey, but several Boom-style two storey terraces or single fronted homes with rear extensions were also considered terraces.
A townhouse is any other attached or semi-detached house with a footprint over multiple floors, usually built in the last 20 years.
For all area measurements, only the internal habitable space was included. Balconies, courtyards, backyards, front yards, garages, sheds and additional storage rooms were excluded.
Tables 1 and 2 show the price per square metre of internal habitable space in terraces and townhouses respectively.
<a href="https://www.propertyobserver.com.au/images/2017/06/Table%201.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/2017/06/Table%201.jpg" alt="">
Terraces are often valued much higher than townhouses and it seems that this assumption is true.
Across the sample of 2016 sales, terraces attracted an average price premium of 52.43% over townhouses.
In terms of price per square metre, this difference is even larger at 56.98% on average.
This means that not only are terraces much more expensive than townhouses on average, they are often smaller than townhouses in total internal area.
<a href="https://www.propertyobserver.com.au/images/2017/06/Table%202.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/2017/06/Table%202.jpg" alt="">
For more information from Secret Agent, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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What is the price paid in inner Melbourne homes per square metre?

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Melbourne is the top ranked ‘tech city’ in Australia and 14th in the world offering the infrastructure, business environment, talent pool and lifestyle to make it a strong base for tech companies, according to new research from London based international real estate advisor Savills.
And according to Victoria’s Minister for Small Business, Innovation and Trade, Philip Dalidakis, that is no surprise given the Government’s policy of taking "brand Victoria to the world’’.
While US cities dominated the top of the Tech Cities rankings – Austin (Texas) came in at number one followed by San Francisco, New York, and London, according to the Tech Cities 2017 report - the liveability of cities including Melbourne, Amsterdam, Copenhagen and Toronto, placed them above more established global tech rivals.
Savills National Head of Research in Australia, Tony Crabb, said the elevation of `liveable’ cities in the rankings centred on their strong performance in terms of ‘buzz and wellness’, factors that were likely to prove increasingly important to the tech industry in decisions on where to locate and on attracting future talent. Melbourne was ranked 8th on this index.
"Everybody here knows Melbourne’s reputation as the world’s most liveable city, a title it has taken for six consecutive years, and so it is not surprising to see how well Melbourne ranked on this metric.
That single factor may well prove, more than any other, the most critical factor in further establishing and maintaining Melbourne‘s pre-eminence in what is increasingly one of the most important employment and growth industries in the country,’’ Mr Crabb said.
Savills Tech Cities 2017 Buzz and Wellness Index 
<a href="https://www.propertyobserver.com.au/images/2017/03/07/Chart-1.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/2017/03/07/Chart-1.jpg" alt="">
The UK report quantified ‘buzz’ (nightlife, entertainment, culture) and ‘wellness’ (pollution levels, quality of parks, healthcare, commuting times) and the cost of living in each location to create a specific ‘city buzz and wellness index’.
It noted that given the increased focus on physical and mental wellbeing among the latest generation of workers, it could come to dominate their decision-making.
According to Nicky Wightman, Director Savills Worldwide Occupier Services, providing an environment which enables tech companies and start-ups to plug straight into the infrastructure and funding they need to be a success is an important part of any tech city.
"However this alone won’t necessarily make them attractive destinations. Young tech talent increasingly want to live in dynamic, healthy neighbourhoods within walking or cycling distance of the office.
Cities that deliver those environments are therefore likely to consolidate their positions as destinations for tech talent and occupiers who want to attract the best staff,’’ Ms Wightman said.
The report’s release follows the Victorian Government’s recent announcement that Texas-based software firm, AgileCraft, would open its Asia-Pacific headquarters in Melbourne.
Savills Tech Cities 2017 overall rankings:
<a href="https://www.propertyobserver.com.au/images/2017/03/07/Chart%202.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/2017/03/07/Chart%202.jpg" alt="">
Mr Dalidakis, said AgileCraft was yet another example of a leading global tech company choosing Victoria as an entry point for the Asia-Pacific market.
"Over the past two years we have taken brand Victoria to the world, attracting more and more leading global companies to invest in the state’s booming tech sector,’’ Mr Dalidakis said.
AgileCraft Chief Executive Officer Steve Elliott said Melbourne’s emerging tech sector and close proximity to Asia made it a perfect location to set up its regional headquarters and expand throughout the Asia Pacific region.
“We consider ourselves to be an innovative company at AgileCraft and the Victorian Government made it clear to us that it is trying to attract innovative businesses to the state, so we look forward to being a part of the Victorian technology ecosystem,” Mr Elliot said.
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