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

Joel Robinson

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

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

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

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

Bottega House secures landmark riverfront site in St Lucia 

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

SIERA kicks off construction at Northcliffe tower Exhale

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

Eastern Suburbs buyers snap up ESTE Little Bay apartments

Melbourne

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Cbus Property has now leased more than 40% of its $1.25 billion Collins Arch development at 447 Collins Street.
Its latest deal for almost 20,000 square metres including a third tenant for the mixed-use precinct.
Top 10 Australian law firm Gadens has secured 5,000 square metres of NLA commercial space over levels 11-13, equating to just over 10% of the 49,000 square metres available.
More than 40% of the leasing space is now committed, with Gadens joining King &amp; Wood Mallesons (KWM) and HWL Ebsworth.
KWM secured 8300 square metres across levels 23 to 27 in June, with HWL Ebsworth securing 6500 square metres across levels eight to 10 in October.
The commercial space lies in the western tower of Collins Arch.
The development will also house a five-star hotel in the eastern tower with a luxury residential component above crowned by two luxury penthouses and resident amenity linking the dual towers across Melbourne’s first sky bridge.
Taking up the entire city block between Collins Street, Williams Street, it has been designed by Woods Bagot and SHoP Architects.
<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/2016/12/20/Cbus%20Property_Collins%20Arch_view2.jpg" alt="">
Colliers national director of office leasing Andrew Beasley said the 447 Collins St address resonated internationally.
”The view south across Melbourne’s Yarra River and Port Phillip Bay and Collins Street-facing northern vista are just part of what makes Collins Arch a major drawcard,” Beasley said.
Construction has commenced on <a href="https://www.collinsarch.com" target="_blank">Collins Arch</a>, with completion due in 2019.
Expressions of interest are currently being accepted for both commercial leasing and the luxury residential apartments, including two sky bridge penthouses.
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j.ballantyne1990-6AQqhLzZaK

Collins Arch, Melbourne signs up third law firm office tenants

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One Melbourne property developer is offering a generous 25-year rental guarantee in a bid to lure Chinese buyers back to the market.
It was offered to clients of China's biggest online real estate agency, Fang.com, The Australian Financial Review has reported.
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<div><img src="/images/2016/12/15/703-2.jpg" alt=""></div>
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<div>Other developers like Volaire apartments, at <a href="https://www.realestate.com.au/property-apartment-vic-west+melbourne-123861814" target="_blank">9 Dryburgh Street, West Melbourne</a>, have discounted prices. </div>
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<div>The discounts in Volaire are via cash rebates equivalent to around 7 per cent of the apartment's value.</div>
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jchancellor-FAypfDUnLy

Chinese buyers being enticed to Melbourne with price discounts and 25 year rental guarantee

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The number of full floor leasing options in Melbourne has declined compared to last year, according to Savills’ latest report.
“In Savills’ Prime Full Floor Availability Report, the state of the leasing market is assessed in a different manner to standard vacancy surveys.
The report graphically shows each Premium and A grade building in the city on a floor-by-floor basis highlighting which floors are available for lease, now and in the near future, in each building including those under construction and refurbishment,” the report stated.
Results from the September 2016 Prime Full Floor Availability Report are detailed below.
<a href="/images/2016/11/15/Melbourne%20full%20floor.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/15/Melbourne%20full%20floor.jpg" alt="">
Savills recorded 135 full floors totalling 192,618 square metres available for lease in A Grade buildings, or 12.7 percent of the market analysed, down from 149 full floors recorded from a year ago.
The number of full floor leasing options available sits at 177 prime grade floors in September 2016, down from 197 full floors 12 months ago.
Full floor vacancy in both Premium and A Grade declined in the 12 months to September 2016.
Vacancy in full floors peaked at 220 in December 2015 with a previous peak of 233 prime grade floors in August 2013.
In recent months, there has been a downward trend of available options.
<a href="/images/2016/11/15/Melbourne%20CBD%20office%20quarterly%20full%20floor.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/15/Melbourne%20CBD%20office%20quarterly%20full%20floor.jpg" alt="">
Melbourne CBD grid (excluding Docklands) total office vacancy rate sits at 7.9 percent as at June 2016.
Whilst vacancy levels had been considerably lower for much of the time, an environment of increased supply levels and rising tenant migration either for upgrade or expansion is contributing to the following vacancy rates:
<a href="/images/2016/11/15/Melbourne%20vacancy.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/15/Melbourne%20vacancy.jpg" alt="">
Melbourne’s vacant office space in the CBD is generally shared by quality grades, with Prime space vacancy at 7 percent and accounting for 14 percent of the total vacancy (59 percent of the total stock) as at June 2016.
Prime vacancy in the Melbourne’s CBD office has declined from 7.9 percent recorded a year ago.
During the past 12 months, Prime quality stock remained steady with the vacancy rates declining with lift in the net absorption levels.
<a href="/images/2016/11/15/Melbourne%20vacancy%20graph.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/15/Melbourne%20vacancy%20graph.jpg" alt="">
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Full floor leasing options in Melbourne declines compared to last year: Savills

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Art Deco apartments retain an aura of charm in our streetscape, according to Secret Agent’s latest bulletin.
This continues to get stronger as time goes by and as more modern apartments are built.
As one of the most scarce and precious of apartment types, what is their true value?
Out of the 1,276 apartments in our latest index, only 91 resales were Art Deco.
These are the most expensive type of apartments at $9,651 per square metre.
It is well ahead of brick apartments from the 60s to 80s ($8,672/sqm), post-90s developments ($8,599/ sqm) and even warehouse conversions ($8,517/sqm).
It is clear that buyers place a high value on Art Deco apartments.
If you’re looking to buy an Art Deco apartment in a specific region of inner Melbourne, you’ll find most resales tend to occur in Melbourne CBD.
It also occurs in the inner East (East Melbourne, Hawthorn, Prahran, South Yarra).
Table 1 summarises the price per square metre rates for Art Deco apartments in Melbourne according to the number of bedrooms, compared to the average of apartments across inner Melbourne.
<a href="https://www.propertyobserver.com.au/images/2016/11/24/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/2016/11/24/Table%201.jpg" alt="">
Table 2 shows the differences in size (sqm) between Art Deco and general apartments in inner Melbourne.
<a href="https://www.propertyobserver.com.au/images/2016/11/24/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/2016/11/24/Table%202.jpg" alt="">
"East Melbourne is home to some of the most expensive apartments (second to Albert Park, though the former has more frequent sales), as we've established from our overall price per square metre index," the bulletin stated.
There is no exception with Art Deco apartments in East Melbourne and they are far more costly on average at $12,878 per square metre.
A significant number of period apartment resales occur within Melbourne CBD, making up a third of the total Art Deco units recorded.
These are much more affordable than their neighbouring East Melbourne equivalents, with differences
in price ranging from $2,600 per square metre less for the common 2 bedroom units to almost $7,000 per square metre less for rare 4 bedroom apartments.
The lower cost of property in the CBD is partly due to the significant number of new developments taking place, blocking out views and sunlight in many older, smaller buildings.
While older style apartments are known to be more spacious than new developments, they aren’t too far ahead of the average.
In fact, warehouse conversions are the biggest apartment type, having 30% more floor space on average.
1 bedroom Art Deco apartments (56sqm) are about 20% bigger than average (47sqm), while 2 bedroom units are only marginally more spacious, with a 5sqm advantage.
Older style 3 bedroom apartments (119sqm) are comparable to the average (121sqm). The rare 4 bedroom unit (214sqm) is slightly larger than average (203sqm).
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Art deco apartments are the most expensive in Melbourne

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Melbourne apartments remain at the peak of the market for Herron Todd White's December Property Clock for units. 
Apartments were at peak in November.
According to HTW the Melbourne apartment market continues to be viewed with caution, with the median unit price falling from $460,000 in December last year to $435,000 by the end of October 2016 (Source: REA Group Ltd, 2016).
<a href="/images/2016/12/05/Screen%20Shot%202016-12-05%20at%201.57.12%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/05/Screen%20Shot%202016-12-05%20at%201.57.12%20PM.png" alt="">
"One main contributor to the falling demand for apartments is the decreasing rate of lending to foreign investors, as the major banks have tightened lending to international purchasers," HTW said.
"Another factor is the continuing increase in supply of apartment stock in the city, with complexes such as Melbourne One, EQ Tower, 888 Collins Street and Platinum complete or beginning the settlement process at the time of writing. This ts with what we predicted at the start of the year, with concerns about oversupply and building regulations still casting a shadow over the apartment market.
"While the Melbourne CBD and Docklands might appear to grab the apartment oversupply headlines, many suburbs in the inner north west of Melbourne have also seen large volumes of completions during 2016. We referenced concerns of excessive supply in suburbs such as North Melbourne, West Melbourne, Moonee Ponds, Ascot Vale and Essendon in our February 2016 predictions and it would appear that this caution was warranted.
"The September 2016 quarter has seen falls in unit median prices across multiple suburbs. In North Melbourne, the median unit price fell 10.7 percent to $518,000 while in West Melbourne, the median fell by an even greater 17.6 percent to $482,000.
"In Moonee Ponds, the median unit price fell 13.8 percent to $535,500, while in Ascot Vale the median fell further by 26.6 percent to $455,000.
"Of the suburbs we referenced, only Essendon has seen a rise in the median unit price of 18.8 percent to $547,000 over the same period (Source: REIV, November 2016).
"Vacancy rates appear to be impacted by the increased volume of apartments. In North Melbourne, the rental vacancy rate is 5.02 percent and is 5.24 percent in West Melbourne (Source: Real Estate Investor, 2016) compared to an average of 3 percent for inner suburbs up to four kilometres from the CBD (Source: REIV, September 2016).
"These higher vacancy rates – over twice the market equilibrium of 2.5 percent - underpin the relative weakness of the unit market in these suburbs."
 
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jonathanchancellor-7SQnKwU6yx

Melbourne apartments at price peak: December 2016 HTW Property Clock

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The Inner South and North East regions of Melbourne had the highest auction clearance rate, according to CoreLogic’s latest weekly report.
The property advisory firm says that both regions had an auction clearance rate of 81 percent as spring turned to summer.
This is followed by the Outer East with 80 percent and the Mornington Peninsula with 78 percent.
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The region with the lowest auction clearance rate was the Inner region where only 70 percent of the known 288 auctions were sold.
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Melbourne's Inner region had lowest auction clearance rate: CoreLogic

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The newly approved Architectus and Ateliers Jean Nouvel tower at 383 La Trobe Street is being developed by Sterling Global.
The $700 million mixed-use tower is a design collaboration between French design architect Ateliers Jean Nouvel and local Australian executive architect Architectus.
The 70-storey tower will have 488 one, two and three bedroom residences and a 196-room hotel.
Now that planning approval has been granted, Sterling Global will engage with international hotel operators.
Matthew Smith, the managing principal, Architectus said the striking new mixed-use tower promises to be become a Melbourne landmark, contributing to the city’s artistic nature and cementing its place in the skyline as a centre of design and culture.
Brandon Yeoh, the development director, Sterling Global said 383 La Trobe Street offered one third of its land back to the public, creating a new laneway dotted with a gallery space, cafes, bars, art spaces and a huge digital art installation.
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French and Australian design collaboration on 383 La Trobe Street, Melbourne landmark

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Melbourne's property market is predicted to fall between 2018 and 2020 due to the recent prices rises and a high level of incoming supply, according to the CoreLogic-Moody’s Analytics Australian Home Value Index Forecast.
The forecast said dwelling values nationwide are forecast to rise 7.9 percent this year and 6.6 percent in 2017, mostly driven by continued gains in Sydney. 
Perth and Darwin remain troublesome during 2017, but then Melbourne's property market is set for mild falls across houses rather than its apartment market. 
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"In Melbourne, property market observers are bracing for a coming wave of apartments. Yet the segment to watch in the city’s real estate market is arguably detached housing, not apartments. House values in Melbourne have increased 47 percent over the past four years, while apartment values have risen a relatively muted 23 percent," the report said.
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"That difference in value growth was not driven by yields: Over the same period, rents from housing rose 14.3 percent, while rents for apartments rose a not-too-dissimilar 10 percent. And rents for apartments across Melbourne are still rising modestly—up 1.3 percent since January—while rents for detached housing have fallen 2.5 percent.
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"With Melbourne, it is possible that wide- spread expectations of the coming supply of apartments have dampened value growth, and so the increased supply may, in a sense, be already ‘priced in’. For this reason, the oncoming supply of new apartments is likely to result in a period of at prices, forecast to be little changed through to 2019.
"However, detached housing values are expected to grow a steady 11 percent for all of 2016 before slowing and eventually declining 1.8 percent in 2018."
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Melbourne house prices set for nation's most severe fall: CoreLogic-Moody's Home Value Index Forecast

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Two inner suburban properties offered at recent auction by agents Gray Johnson have been purchased by developers proposing either townhouses or a mix of commercial and residential projects.
They are reflective of the strong current market demand for townhouse development sites in particular.
They were offered as surplus to the needs of a major corporate, with architectural conceptual plans prepared for potential developments.
The property at 570 Neerim Road, Hughesdale was auctioned as a vacant site with a developable area of approximately 590 square metres and a street frontage to Neerim Road of 15 metres.
Holding a general residential zoning, it sold at auction for $1,119,000 to a developer who will consider a townhouse project for the site.
Another property, known as part 101 Cape Street in Heidelberg, has a developable area of approximately 309 square metres with a frontage of some 17 metres to Sheffield Lane and holds a commercial 1 zoning.
It sold at auction for $1 million to a developer believed to propose a mixed use multi-level commercial and residential project.
Gray Johnson director Matt Hoath says that this property is in close proximity to Heidelberg’s primary retail and services strip along Burgundy Street.
This includes the Warringah Shopping Centre, with easy access to the Mercy Women’s and Austin Hospitals and the Heidelberg Station.
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Two Hughesdale potential townhouse development site sold

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Parallel to the buoyant leasing activity, strong investment appetite from all purchaser categories resulted in high levels of transactional activity in the Melbourne CBD office market, according to Savills' latest report.
Melbourne CBD’s commercial office sales (&gt;$2 million) reached $2.15 billion in the 12 months to September 2016, with significant levels of capital chasing office sector assets.
The total sales achieved in the past year were 15 percent higher than the $1.87 billion that was transacted in the preceding 12 months.
According to IPD, Melbourne CBD office property returned a steady total return of 15.7 percent, at similar levels from a year ago.
However, Melbourne office property returns are trending above the five-year average total returns of 12.2 percent.
Historically low interest rates coupled with volatile global financial markets, led investors to select core office property as a solid investment asset class.
Investment yields firmed across Melbourne CBD’s prime and secondary assets over the past year.
"Savills expects this cycle to continue its momentum; albeit at a lower rate, with investment capital beginning to chase expectations of future NOI growth," the report stated.
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Market yields in the Melbourne CBD as at September 2016 are estimated to range between 5.25% and 6.25% for A grade buildings, and between 6.25% and 7.00% for secondary buildings.
Yield compression has been evident over the last twelve months, with yields for A grade assets having firmed by 83 basis points on average, whilst secondary yields tightened by 75 basis points.
Capital values in the Melbourne CBD as at September 2016 are estimated to range from $7,200 to $11,500 per square metre for A grade buildings, and between $5,000 and $6,550 per square metre for secondary grade buildings.
Average capital values for A grade properties have delivered an increase of 22 percent over the year.
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The Australian dollar has depreciated by 27 percent against the US dollar from its peak in March 2013, boosting property investment, especially from foreign investors over the past three years.
Foreign investors were the most active purchaser class for the period accounting for 65 percent of the total sales by value, well ahead of domestic institutions at 26 percent.
Private investors were the third largest purchaser category amounting to 7 percent of the sales by value.
The buoyant investment environment has continued to offer investors opportunities to rebalance their portfolios.
Currently there are three assets offered for sale in Melbourne’s central office market; ANZ world headquarters at 100 Queen Street.
RMIT Building by Selected Growth Properties and 50 Franklin Street owned by a group of strata owners, who have jointly put the building on sale.
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Joint sale by multiple property owners seeking to benefit from strong underpinning investor demand has been the latest trend in Melbourne’s property market.
The Melbourne CBD achieved 22 office sales, for the value of $2.15 billion in the 12 months to September 2016, up from $1.87 billion in the prior year.
In the most notable recent sales reported, Philip Lim purchased 380 La Trobe Street for $157 million from Invesco Asset Management, while Straits Real Estate sold 114 William Street for c.$175 million.
Other major sales for the last twelve months include; part shares in Southern Cross, a 43 percent share in Bourke Place, 161 Collins Street, 1 Collins Street and 120 Spencer Street.
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Rental rates reflect a net effective rent on a single, whole floor in the mid-rise of a building unless specifically otherwise stated.
Discounts and premiums exist for low and high rise space and for significant occupiers.
Victoria’s economy is expected to grow at 2.8 percent in 2016-17, highest amongst all Australian states and above the national average of 2.7 percent economic growth.
It is also forecasted to grow at a higher rate than the advanced economies (1.7 percent).
Tenant demand over the next year is expected to be driven by the sectors of Healthcare, Finance &amp; Insurance and Government, with the sectors forecast to grow at 6.0 percent, 5.4 percent and 4.1 percent respectively nationwide.
Melbourne CBD’s white collar employment grew by 11,600 workers from 2011 to 2016, and it is forecast to rise by another 36,000 workers over the next five years.
Growth in CBD white collar employment is expected to increase absorption of CBD office space.
“As tenant demand continues to improve, Savills expects pre-commitment led construction to drive new development activity over the course of the next two years,” the report stated.
Tenant migration to pre-committed stock is likely to affect backfill vacancy levels. As a result, rental growth is expected to remain below economic rents, with incentives still at play; albeit at lower levels.
“Whilst, leasing activity has been muted over most period (three quarters) of the past year in the central Melbourne market, largely attributed to low business confidence, Savills has recorded a recent uptick in the take-up,” the report stated.
Latest rebound in tenant demand led to the highest level of take-up recorded since September 2011 which is also above the five year average.
“Dun &amp; Bradstreet’s Business Expectations Index (the average of the survey’s measures of Sales, Profits, Employment and Capital Investment), increased to 17.8 for the fourth quarter of 2016, up from 12.3 in the previous quarter, and is 9.9 above the 10-year average of 7.9. Savills’ anticipates optimism in Business expectations to boost growth in tenant demand, resulting into higher level of leasing activity in the near term,” the report stated.
The RBA’s follow-up rate cut in August provided some support to Business confidence, lifting it from July 2016 (+4) to Aug 2016 (+6) and further sustaining it in September (+6). Current levels of confidence are consistent with the long-run average, as reported by NAB.
“Now with the conclusion of the federal election combined with Australia’s ‘safe haven’ status, Savills expects foreign capital flow to maintain its momentum, as market fundamentals continue to improve in domestic markets compared to overseas markets which are grappling from financial markets turmoil, Brexit and uncertainty led by upcoming US elections,” the report stated.
The amount of capital seeking investment opportunities is likely to further cause yield compression, though at a much slower pace.
Although, the limited availability of stock offered for sale is likely to impede record levels of investment activity from the recent past.
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