Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

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

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

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

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

Bottega House secures landmark riverfront site in St Lucia 

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

SIERA kicks off construction at Northcliffe tower Exhale

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

Eastern Suburbs buyers snap up ESTE Little Bay apartments

Melbourne

<html><body>
Melbourne developers Salvo Property Group has purchased a site with pre-existing permit for four residential towers in Melbourne's Fishermans Bendin a deal rumoured to be more than $40 million.
The 9,766sqm site, 60-82 Johnston Street, South Melbourne, was sold by vendor Bill McNee through Colliers International.
The property has plans and permits for more than 1,300 apartments in four towers designed by Rothelowman.
There will be two high-rise towers (46 and 43 storeys) and two medium-rise towers (27 and 21 storeys).
Agent Daniel Wolman said 60-82 Johnson Street in South Melbourne will be one of the largest mixed-used complexes within Fishermans Bend.
“Salvo’s success in Southbank will continue in Fishermans Bend, bringing not only residential apartments to the area, but also supermarkets, retail shops, offices and other amenities," he said.
“We were managing interest and offers from several Asian developers, particularly from China, Malaysia and Singapore.
“However, the local developers saw the potential in this premium inner-city location immediately and acted accordingly, which is testament to the strength of the Melbourne market.
“This project is situated within one of Australia’s most dynamic urban renewal development precincts and as such, it was an opportunity for someone to create a flagship project."
 
</body></html>

j.ballantyne1990-6AQqhLzZaK

Chinese developers surge into Melbourne again for apartment sites

<html><body>
The executive Chairman at WBP Property Group Greville Pabst says that Melbourne's median house price growth will rise by another 10 percent this year.
"Not unprecedented but watching stock being absorbed so quick in late spring and numbers at opens in 2017, I believe median house price growth should forge another 10 percent this year," he has advised.
"With two caveats," he added.
"Interest rates and unemployment."
Meanwhile Mr Pabst expects the property market to continue in the seller’s favour this year, particularly for houses.
“Given a lot of the stock has been mopped up, I think there will be pent-up demand when this market opens up again in mid-February.”
Mr Pabst says the market would be dependent on economic factors.
“A rise in unemployment or interest rates might take a bit of wind out of the sails,” he told the Herald Sun.
“There’s also the Trump factor, which could mean we have to put up interest rates faster, or it could mean a policy decision that has an impact on our economy.”
His tip was established apartments could grow up to 5 per cent because there was limited supply, with a similar outcome for single-level villas.
As for houses, he said established homes within 10km of the CBD and less than $2 million would “remain one of the safest bets” this year.
He predicts that prices could grow because homebuyers were fighting to buy within that range.
Similar growth could be expected for property less than $2 million up to 20km from the CBD, where listing shortages and affordability would drive prices in the area.
Mr Pabst forecast the value of resold modern apartments could fall about 6 per cent.
“Supply in certain postcodes including Melbourne, Docklands and Southbank and the in-built incentives will mean it might take up to six years for many of these investments to break even."
His WBP valuation group is known as one of the most bearish among the inner Melbourne valuers with their off the plan bank valuations.
</body></html>

10 percent price growth for Melbourne houses predicted by Greville Pabst

<html><body>
The median dwelling price in Melbourne is $566,000, up from $475,000 five years ago, according the December 2016 Housing Affordability Report from CoreLogic.
The median dwelling value across Melbourne now costs 7.1 times the median annual household income, according to CoreLogic. 
<a href="https://www.propertyobserver.com.au/images/2017/01/23/Screen%20Shot%202017-01-23%20at%201.45.41%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/23/Screen%20Shot%202017-01-23%20at%201.45.41%20PM.png" alt="">
Property Observer went searching around the median price in Melbourne and found this one bedroom apartment at <a href="https://www.realestate.com.au/property-apartment-vic-melbourne-120627881" target="_blank">168 Victoria Street, Melbourne</a> on the market with prices starting from $542,000.
</body></html>

mick.cee-iDmgDDAmu8

Median Melbourne dwelling price around $566,000: CoreLogic

<html><body>
A vacant warehouse offered in inner-city Melbourne has sold post-auction for $2.82 million, with the property coming with an architect’s concept development plan for a residential project.
The selling agent was Gray Johnson’s Rory White who said the sale price was equal to a strong land price of $5,351 per square metre and the developable land area at the ground level is estimated at 527 sqm.
The property sold after being on the market for 64 days, according to RP Data.
The property at 168 Chetwynd Street North Melbourne has combined frontages to Warwick Street and Browns Lane and close to the popular Queen Victoria Market and public transport on the northern edge of the Melbourne CBD.
The existing building comprises an older style warehouse of character with a red brick façade, lofty ceilings and concrete floors and was offered with vacant possession.
The property is included within a Mixed-Use zone with an architect’s concept development plan prepared on behalf of a major corporate as vendor.
The purchaser may build a multi-unit residential suite development for the site, according to the media release.
This sale reflects the strong demand for townhouse development sites currently especially capable of accommodating five to 20 units with solid interest from both local and offshore buyers.
</body></html>

jonathanchancellor-7SQnKwU6yx

North Melbourne property with plans for apartments sells for $2.82 million

<html><body>
While Sydney suburbs dominated CoreLogic’s top 10 list that looked at the biggest change in median values for units in the 12 months to September 2016, Melbourne too figured prominently with Carrum at number six.
Carrum (postcode 3197) had a median unit price of $552,017 with a change of 26.3 percent over the same period, according to CoreLogic’s Best of the Best 2016 report. There were a 80 deals during the period.
<a href="https://www.propertyobserver.com.au/images/2017/01/11/Screen%20Shot%202017-01-11%20at%209.40.46%20AM.png" target="_blank" style="font-size: 12.16px;">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/11/Screen%20Shot%202017-01-11%20at%209.40.46%20AM.png" alt="">
Property Observer looked up some sales around the median price.
A two-bedroom unit at <a href="https://www.realestate.com.au/sold/property-unit-vic-carrum-122706622" target="_blank">2/13 True Avenue, </a><a href="https://www.realestate.com.au/sold/property-unit-vic-carrum-122706622" target="_blank">Carrum, Vic 3197</a> sold for $550,000 in June 2016 through Harcourts. It previously sold in 2015 for $400,000, according to RP Data, reflecting a change in value of 37.5 percent in just over a year.
 <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/2017/01/16/Carrum2.jpg" alt="">
A three-bedroom unit at <a href="https://www.realestate.com.au/sold/property-apartment-vic-carrum-121649046" target="_blank" style="font-size: 12.16px;">7/36 Melaluca, Carrum, Vic 3197</a> sold for $540,000 in 2016 after being on the market for 603 days, according to RP Data. Its last listed price was $598,000, according to RP Data. 
<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/2017/01/16/Carrum.jpg" alt="">
Melbourne's only other entrant on the list was Keysborough. 
</body></html>

Carrum ranked second best price growth suburb for units in Melbourne in 2016

<html><body>
GUEST OBSERVER
Houses outshone units across Melbourne in 2016, but 2017 may well be the year of the apartment for the astute investor.
Period- or older-style apartment performance was sluggish in 2016 across Melbourne, with activity, rental and capital growth rates measured relative to houses. There was a dampening effect caused by an excessive boom in the high-rise or multi-unit sector over recent years.
But it is evident from ABS financing and building approval numbers that the much-needed correction in the multi-unit sector has begun, and prices and volumes of new supply in this category will continue to shrink over 2017.
Consequently, there is a strong case to be made that period style apartments are undervalued at the moment. Indeed, with investors looking for safer assets in 2017, we anticipate a rush-to-quality out of high rise and into older-style apartments and houses.
Growth continues in 2017. Around 5 to 10 percent in inner suburbs.
Although residential property has performed strongly in Melbourne over the last four years, don’t be surprised if 2017 sees further growth.
Underpinning this view is evidence of persistent buyer demand off the back of lower interest rates, and a shortage of stock on the market. This shortage of stock is essentially the result of four years of buoyant sales volumes exhausting the pool of discretionary vendors. Eventually, one would expect potential sellers to respond positively to the price growth signal out there, but it hasn’t happened yet, and it may not eventuate until sometime in mid-2017.
Furthermore, the broader fundamentals of the market remain benevolent:  a rising population, a relatively steady economy – with unemployment appearing to be stabilising around 6% – and, of course, low interest rates.
In-demand property types in the inner and middle ring suburbs should record solid capital growth of around 5 to 10 per cent in 2017. But lower-demand properties in the high rise CBD sector and outer suburban areas will see little growth.
Paul’s tips for those considering property in 2017.
Don’t procrastinate. The Melbourne auction market remained unusually active right up to the final weekend of the year. This augurs well for 2017, as our experience is that a late end-of-year run invariably heralds a good start to the following year. If you are a prospective buyer, don’t make the mistake of waiting to see what happens in February and March before jumping in. You may find that property prices are 5 per cent higher in April than they finished 2016.
Don’t place too much weight on overseas events. The commentariat spent much of November and December agonising over the implications of the coming Trump presidency. Just know that the Australian property market has been subject to numerous external shocks that were supposed to damage it  – the GFC, the tech wreck, wars and international terrorist events – and didn’t.
Focus on what you can control. Whilst you can’t control what happens to the world economy or who is in the White House, you can control the property assets that you invest in.  Make getting that right your priority. Focus on selecting high quality property with a track record and propensity for capital growth.
Paul Nugent is a director of Wakelin Property Advisory and can be contacted <a href="https://www.wakelin.com.au" target="_blank">here</a>. 
</body></html>

jchancellor-FAypfDUnLy

Investors will rediscover value in period-style Melbourne apartments: Paul Nugent

<html><body><div class="cq-article-content-paras section">
Economist Saul Eslake does not think the RBA will raise rates simply to dampen property price inflation if for some reason prices run along at a much higher-than-expected rate during 2017.
When it comes to the outlook for house prices in Australia in 2017, Eslake says its is unwise to talk about the Australian housing market as a single, homogeneous entity.
"There is a considerable divergence between supply and demand conditions across Australia, and among Australia's major cities," he noted.
In Perth and Darwin, in the aftermath of the mining investment boom and with population growth slowing sharply, property prices have begun to decline and Eslake says "will likely fall further this year.
By contrast, population growth in Victoria is accelerating (reaching a seven-year high in mid-2016) so Eslake says "even though there is a lot of new supply coming on-stream in Melbourne, prices could still keep rising during 2017, albeit at more moderate rates.
"There might conceivably be more risk in Sydney – where new housing supply is picking up more rapidly than in Melbourne while population growth has begun to slow – although at least partly offsetting those risks is that the new supply is less geographically concentrated in Sydney than it is in Melbourne (or Brisbane).
In the absence of any obvious trigger for prices to start falling, Eslake says he thinks that Sydney will see further property price increases in 2017.
"But at a more sedate pace than in 2015 or 2016.
"I should add, I don't think this is a good thing – I don't believe that Australia's long-term economic and social interest is well-served by ever-rising property prices, or by an entrenched belief that property prices only ever go one way.
"I don't think it's a good thing that lending to property investors has started to rise again, after slowing during 2015-16 in response to the tightening in lending standards dictated by APRA."
</div></body></html>

Melbourne property prices could rise during 2017: Saul Eslake

<html><body>
Much has been said about inner Melbourne’s apartment market supply, and the numbers prove it.
Melbourne was at the top spot for highest gross sales over the 12 months to September 2016, with total sales of $739,769,597, with the waterfront hub of Southbank at no. 4 on the top 10 list, according to CoreLogic’s latest report.
Surfer’s Paradise and Hope Island on the Gold Coast were second and third with Sydney suburb Mosman rounding up the top 5. 
“Approved housing supply reached unprecedented highs during 2016 with high rise apartment projects attracting a higher risk profile, particularly across key areas of inner Melbourne and Inner Brisbane,” according to CoreLogic’s Best of the Best 2016.
<a href="https://www.propertyobserver.com.au/images/2016/12/23/CoreLogicMedianSalesUnits.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2016/12/23/CoreLogicMedianSalesUnits.png" alt="">
The median value for unit sales in Melbourne was $470,055. 
Around the median price, we found a two-bedroom unit at <a href="https://www.realestate.com.au/sold/property-apartment-vic-melbourne-122289782" target="_blank">2107/250 Elizabeth Street </a>(below), that sold for $475,000 in April 2016.
The apartment was sold through Dingle Partners. The investment property is on the 21st floor of Somerset on Elizabeth complex. 
 <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/2016/12/23/MelbUnitMed.jpg" alt="">
A two-bedroom 160 sqm apartment at <a href="https://www.realestate.com.au/sold/property-apartment-vic-melbourne-121708842" target="_blank">192/299 Queen Street, </a>Melbourne, Vic 3000 (below and main picture) sold for $1,320,000 in May 2016.
The property was sold by Melbourne City Real Estate.
<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/2016/12/23/MelbUnitHigh.jpg" alt=""> 
Among the lowest was an investment property, a studio at <a href="https://www.realestate.com.au/sold/property-studio-vic-melbourne-121308294" target="_blank">408/62-68 Hayward Lane, Melbourne</a> (below) that fetched just $170,000 in the Melbourne CBD with the agents promising an annual return of more than 8 percent. It was sold through Elite Real Estate. It was sold in March 2016.
 <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/2016/12/23/MelbUnitCheap.jpg" alt="">
</body></html>

prateek24-ezbwHMbNAk

Melbourne tops gross value of sales for apartments: CoreLogic report

<html><body>
This year has been full of surprises, both very large in terms of impact (Brexit) as well as very small in probability (Leicester City winning the EPL with 5000:1 odds) and a combination of both (Trump Presidency), according to Secret Agent’s latest bulletin.
Additionally, 2016 saw two interest rate cuts by the RBA, bringing official rates to 1.50%.
Given all the tumult, Melbourne property prices have remained fairly stable.
The following capital growth analysis of inner Melbourne houses, townhouses and apartments provides a breakdown of results by region.
<a href="https://www.propertyobserver.com.au/images/2016/12/22/Table%201Figure%206.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/2016/12/22/Table%201Figure%206.jpg" alt="">
“It uses Secret Agent’s resales index, which tracks the sales of identical property (i.e. no renovations, demolitions, or other activities that add or remove value from the market) over time,” the bulletin stated.
Secret Agent claims this makes the figures more accurate than simple median or average growth price changes, which can often be skewed by large property sales or a general change in the underlying quality.
Houses and townhouses have been on an upward trend since 2011.
They have surged from annualised growth of around 7% earlier this year to over 8% (when converting the quarterly growth to an annual value) in Q4 of 2016.
On average, all regions experienced similar capital growth over the year, between 7.33% in the inner south and up to 7.59% in the inner east.
Overall, inner Melbourne house and townhouse investments grew by 7.54%, beating the five-year average (2011-2015) of 6.32% by 101 basis points.
This is also well above the 2015 average annual growth across inner Melbourne of 6.98%.
The five-year average growth represents the average of all annual median capital growth between 2011 and 2015.
The inner north had a mixed 2016, with half the suburbs beating 2015 growth rates and two thirds improving on the average five-year growth rate.
<a href="https://www.propertyobserver.com.au/images/2016/12/22/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/2016/12/22/Table%202.jpg" alt="">
The suburbs with the highest median growth in the inner north are Fitzroy and Fitzroy North, both at around 8% on an annual basis and well above the previous five-year trend of 6.47% and 7.16% respectively.
On the other hand, Collingwood (5.58%) and Carlton (5.43%) had the lowest capital growth over the year.
The inner south had an exceptional year in terms of capital growth, with suburbs growing at a faster pace than last year.
<a href="https://www.propertyobserver.com.au/images/2016/12/22/Table%203.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/2016/12/22/Table%203.jpg" alt="">
The exception was Albert Park, which remained at its 2015 annual growth rate of 6.17%.
Middle Park had the largest capital gains, growing at an annualised rate of 9.18%, over 2% higher than in 2015.
Port Melbourne and South Melbourne also had high capital growth rates of around 7% each.
The best performing region for houses and townhouses for 2016 was the inner east, where all suburbs except South Yarra had stronger annual growth than in 2015.
Only South Yarra and East Melbourne’s capital growth was slightly below the previous five-year average.
<a href="https://www.propertyobserver.com.au/images/2016/12/22/Table%204.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/2016/12/22/Table%204.jpg" alt="">
Cremorne topped the list with an impressive 10% capital growth.
There is often more variance in smaller suburbs so this may have pushed up capital growth slightly here.
Hawthorn, Prahran and Abbotsford follow at between 7-8% annualised growth each. Both Richmond and East Melbourne managed between 6-7% growth.
All four inner west suburbs increased on 2015 levels, although the results are less impressive when compared to the inner east and south.
<a href="https://www.propertyobserver.com.au/images/2016/12/22/Table%205.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/2016/12/22/Table%205.jpg" alt="">
While Travancore had the smallest annualised growth rate in 2016 (5.39%), it is above the 2015 rate by 170 basis points.
Overall, suburbs in the inner west managed to surpass 2015 growth rates by an average of 95.5 basis points.
<a href="https://www.propertyobserver.com.au/images/2016/12/22/Figure%207.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/2016/12/22/Figure%207.jpg" alt="">
On the other hand, capital growth for inner Melbourne apartments and units has been declining since Q2 2007, a trend that continued in 2016.
Apartments across inner Melbourne grew by 2.96% over the year, below the previous five-year average of 3.37% and the 2015 annual average of 3.03%.
For the first three quarters of 2016, capital growth remained at about the same level. All areas except the inner west experienced a downturn in the final quarter of the year.
Note that these final quarter results may change slightly as the year comes to an end.
Apartments in the inner city all experienced capital growth in 2016 that was below the previous five-year average.
<a href="https://www.propertyobserver.com.au/images/2016/12/22/Table%206.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/2016/12/22/Table%206.jpg" alt="">
However, Southbank and the CBD managed to improve on last year’s growth rates, showing a potential gain in momentum.
Docklands apartments were below their 2015 growth rate of 1.40% by 14 basis points.
In the inner north, only Clifton Hill (which also topped the list at 5.75% annualised growth), Fitzroy and Brunswick East managed to beat their 2015 capital growth, while Fitzroy North retained its previous annual growth of 4.53%.
<a href="https://www.propertyobserver.com.au/images/2016/12/22/Table%207.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/2016/12/22/Table%207.jpg" alt="">
Brunswick apartments had the greatest drop in capital growth rates since last year, falling by 80 basis points, followed by Parkville, where growth slowed by 70 basis points.
Inner South apartments had a mixed 2016, with half of the suburbs growing at a faster pace than last year and the other half slowing down.
<a href="https://www.propertyobserver.com.au/images/2016/12/22/Table%208.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/2016/12/22/Table%208.jpg" alt="">
In Albert Park, apartments and units actually outperformed houses and townhouses by about 30 basis points.
South Melbourne apartments grew in value only slightly above inflation at 2.69%, down from 3.03% last year and 3.89% on average between 2011 and 2015.
Compared to other regions, apartments and units in the inner east performed relatively well.
Cremorne has topped both the house/townhouse and apartment growth lists, growing at an annual rate just below 6% in the latter.
All other suburbs except South Yarra (3.85%) and Prahran (2.50%) managed capital gains between 4-5%.
<a href="https://www.propertyobserver.com.au/images/2016/12/22/Table%209.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/2016/12/22/Table%209.jpg" alt="">
The inner west had the smallest capital gains in 2016. Travancore, which in previous years had seen declining growth rates, was the only suburb which managed to surpass its five-year average growth.
No suburb had annual growth higher than 3%.
<a href="https://www.propertyobserver.com.au/images/2016/12/22/Table%2010.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/2016/12/22/Table%2010.jpg" alt="">
West Melbourne came closest at 2.86%.
Kensington was second on the list with 2.27%, a gain of 56 basis points over last year’s capital growth.
</body></html>

Melbourne

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Melbourne

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News