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

Office

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Private investors and institutional buyers drove an increase in office space sales in Adelaide over the last 24 months according to a new report by Savills Research.
A total of $544 million of office sales were made the year to June 2015, up 27%. The total sales mark an increase on the $415 million five year average.
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Savills reported 51,778 square metres of CBD office leasing in the 12 months to June 2015, down 18.3% when compared to the previous year and a stop on the five year average of 86,094 square metres. 
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jonathanchancellor-7SQnKwU6yx

Investors, institutions drive Adelaide office sales: Savills

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More than $28 billion worth of commercial property - office, industrial and retail - has been transacted in the 12 months to June nationally, up nearly $5 billion or 20% on last year’s figure, with foreign investors taking 24%, according to Savills Australia’s latest research.
Retail was the big mover with $7.4 billion worth of transactions, up 26% on the same period last year, according to Savills Australia’s national head of research, Tony Crabb.
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jchancellor-FAypfDUnLy

$28 billion commercial property sales up 20%: Savills Australia

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GUEST OBSERVATION
In a letter to Felice Bauer in 1912, philosopher Franz Kafka lamented, “time is short, my strength is limited, the office is a horror, the apartment is noisy, and if a pleasant, straightforward life is not possible then one must try to wriggle through by subtle manoeuvres.” Modern workers may well empathise with Kafka’s description of his workplace. Much attention has been focussed recently on the current state of office design.
The huge response to a recent <a href="https://www.newyorker.com/business/currency/the-open-office-trap">article</a> on the trap of open offices suggests increasing numbers of workers might be inclined to agree with Kafka’s sentiments. It seems that being productive at work is becoming harder.
According to a <a href="https://www.gensler.com/uploads/documents/2013_US_Workplace_Survey_07_15_2013.pdf">Gensler</a> report in 2013, just getting work done at all is difficult, with over half of employees noting they found it hard to concentrate at work. Being able to concentrate is a vital precursor to cognition in the workplace. <a href="https://jom.sagepub.com/content/early/2010/04/08/0149206310367948.abstract">Studies</a> have shown that if we can’t think clearly, our performance, strategic decision making and responses to both internal and external events are compromised.
We seem to be getting it back to front. In many modern workplaces, the trend to open-plan collaborative spaces is almost an epidemic. Not participating in the drive for collaboration is seen as almost anti-corporate behaviour.
Workplaces that are born out of design briefs full of corporate jargon such as space optimisation, utilisation efficiency or brand alignment tend to, unsurprisingly, leave us cold. As employees we need to be both physically and psychologically comfortable. Usually, physical comfort is a central part of the design of workplaces. Unfortunately, psychological comfort is often not. If people aren’t both psychologically, as well as physically comfortable at work, they have less cognitive resources available to them. They are less productive, less creative and more stressed.
The cost and time involved to make large scale change to offices can seem overwhelming. However, new research has shown that even small changes to the workspace can have dramatic effects on the way people work. It will come as no surprise to many to discover that control over our environments makes a difference to how we feel. Personal control makes us feel more confident. Research has shown that employees who can personalise their space are 32% more productive. Two areas showing promising results are stand-up desks and <a href="https://www.nytimes.com/2015/02/23/nyregion/as-office-space-shrinks-so-does-privacy-for-workers?_r=0">retreat spaces</a> within the workplace.
The idea of retreating to spaces that restore us is not new. The sixteenth century philosopher Montaigne famously worked in a tower replete with vaulted ceilings, a library and even a bedroom. Seinfeld’s George Costanza stored a blanket, pillow and alarm clock under his desk so that he could take naps. Indeed, research shows that our need for prospect (or a view) and refuge remains biologically hardwired. <a href="https://books.google.com.au/books?hl=en&amp;lr=&amp;id=hoRooqUJwVsC&amp;oi=fnd&amp;pg=PR9&amp;dq=sally+augustin&amp;ots=uDaGqQl1RF&amp;sig=ah1vogGgrH8B7DTYh2JOLs4j5-M#v=onepage&amp;q=sally%20augustin&amp;f=false">Environmental psychologist Sally Augustin</a> notes this need for refuge helps us to restore our attention and feel psychologically safe. Indeed, Augustin notes this as a reason why booths in a restaurant fill up faster, perhaps reinforcing Mafia folklore that it’s a good idea to sit with your back to a wall.
Susan Cain, author of the New York Times bestseller Quiet, writes that solitude is an essential ingredient in innovation. Cain has recently been involved in a project to create <a href="https://www.theatlantic.com/health/archive/2014/06/an-office-for-introverts/372130/#disqus_thread">retreat spaces</a> for introverts within the workplace. Refuge spaces allow employees to access a place where they can retreat from distraction to restore mentally and physically. These types of spaces, as well as different furniture configurations, are becoming increasingly important for employees to undertake focussed work.
Stand-up desks are now a more prevalent feature in offices following studies finding workers spend up to 80,000 seated during their working life, leading to numerous <a href="https://www.uq.edu.au/cprc/docs/Reducing_Sitting_Workplace_Full.pdf">health issues</a>. New research however by Andrew Knight and Markus Baer at Washington University, has shown the benefits of stand-up desks go far beyond health. In an empirical study of 54 teams engaged in a creative task, Knight and Baer found that the use of stand-up desks, rather than traditional, sedentary office furniture, increased excitement around creative processes, decreased the tendency for people to defend their turf, leading to better information sharing, ideas and ultimately improved team performance.
A <a href="https://www.propertyobserver.com.au/https://www.amazon.com/Daily-Rituals-How-Artists-Work/dp/0307273601">compilation</a> by Mason Currey on the workspaces and work habits of some of history’s most profilic thinkers highlights the vast (and often amusing) differences in how we work. There is no one size fits all, so whether we like to sit, stand, lie down, or decorate our desks with our gnome collection, the ability to alter our workspace and take refuge from it, are important to us all.
Libby Sander is a PhD Candidate at Griffith University.
Libby Sander advises organisations based on findings of her research. She has previously received research funding for a project from BeneAG.
This article first appeared on <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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po-LsXgBTHBmX

Why you should get up, stand up and even lie down at work: Libby Sander

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Illawarra Mutual Building Society (IMB) has sold its Wollongong office block for $6.25 million.
The 253 Crown Street premises were bought by the local burgeoning broadcasting company, WIN Properties Pty Ltd.
IMB has entered into a leaseback arrangement for its head office building.
It advised there were terms that provided IMB "both security of tenancy and the flexibility to upgrade to new premises after 35 years in the current location".
The profit on sale of the property was put in excess of $2 million.
IMB was founded in 1880 by a small group of Wollongong pioneers.
It has become one of Australia’s leading and largest mutual financial institutions, still calling Wollongong home, managing assets in excess of $4.6 billion, with 42 branches and more than 180,000 members throughout the Illawarra, NSW South Coast, Southern Highlands, Sydney, ACT and Melbourne.
WIN bought 243 Crown Street last year for $6 million from the Commonwealth Bank of Australia.
WIN bought 221 Crown Street in 1991 for $2.85 million.
Two of WIN's next purchases were in 1997 of 233 Crown Street for $1.2 million with 231 Crown Street costing $740,000.
WIN also owns several properties on Keira Street. 
Earlier this year the local Fairfax Media paper reported almost $1 million could be spent on sprucing up rundown buildings in Wollongong’s CBD under the council’s facade rejuvenation scheme.
Owners of 27 properties along Crown Street are in line to benefit from $300,000 of Wollongong City Council funding, to be handed out in grants of up to $20,000 and used to cover half the cost of a shopfront makeover.
In turn, business owners have committed to spend more than $650,000 of their own funds to improve the look of signage, paint work, awnings and security grills.
According to economic modelling, which considers direct and indirect flow-on effects including the use of local contractors, the council says the program could generate $2.1 million of economic activity in the city.
Of the applications set to receive funding, 11 are for heritage-listed sites and 14 are for properties in the notoriously scruffy western end of Crown Street.
Some of the businesses that could benefit from the scheme included the IMB building at 253 Crown Street with a proposed $20,000 grant.
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IMB sell Wollongong office to burgeoning WIN Properties

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Melbourne and Sydney office markets could benefit from potential further interest rate cuts, according to a new report from Savills. 
The <a href="https://publications.savills.com.au/WorldOfficeYieldSpectrum/" target="_blank">Savills/Deakin World Office Yield Spectrum Report</a> compares 43 cities across Asia, Europe, the US and Australia on market yields, accretion and risk, and offers buyer profile and price breakdowns.
<img src="/images/2015/04/22/sav-april-22-one.jpg" alt="">
<a href="https://publications.savills.com.au/WorldOfficeYieldSpectrum/" target="_blank">Tony Crabb, the national head of research in Australia</a>, said the world capital markets continue to see large amounts of capital inflows and commercial property markets remain a popular home.
"Despite variable economic fundamentals around the globe, capital continues to chase some generous returns. Local operators continually cite a lack of fundamental support for some pricing," said Crabb.
"Nevertheless, the competitive tension to place capital remains."
<img src="/images/2015/04/22/sav-april-22-two.jpg" alt="">
Crabb said that Australia's tow largest office markets could stand to gain from future interest rate cuts.
"If the Reserve Bank of Australia is successful in stimulating growth in the non-resources side of the economy, then the office markets in both Melbourne and Sydney should be the beneficiaries of stronger tenant demand," he wrote.
"Signs of this were seen in the last six months of 2014 and Savills Research expects this trend to strengthen in 2015.
"Incentives are currently prevalent in the Australian CBD office markets in order to attract tenants into vacant space.
"These large levels of incentives are reflected in the difference between market and effective yields and can be seen in the charts. Incentives account for between 150 basis points and 340 basis points gap between market and effective yields." 
<img src="/images/2015/04/22/sav-april-22-three.jpg" alt="">
Crabb concluded globally, commercial property yields in particular continue to look attractive. 
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Office markets could benefit from rate cuts: Savills

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Two heritage-listed office buildings at the Paris end of Collins Street, Melbourne have been listed for sale through Savills agent Clinton Baxter.
At 10-12 Collins Street, the five storey Victor Horsley Chambers, dates back to 1924.
The Georgian Revival building offers retail and office space.
Next door at 14-16 Collins Street is the five storey 1912 Chanonry office building.
Victor Horsley Chambers traded at $900,000 in 1971.
Chanonry last traded for $300,000 in 1971.
Both buildings, owned by private investors, are in the same block as the Melbourne Club.
They both have redevelopment potential.
"This is the ultimate location for property ownership within Melbourne, quite possibly Australia, with most properties being exceedingly tightly-held and often owned for generations," said Savills' Clinton Baxter, who is handling the properties with colleague Nick Peden.
The offering of two neighbouring office buildings at the prestigious Paris end of Collins Street in Melbourne’s CBD, could fetch a combined $35 million or more.
All leases are subject to six month termination clauses, providing the successful purchasers with a range of options which may include refurbishment, repositioning, owner-occupation or total redevelopment of the properties
Offers close with Savills 28 May.
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Two Paris end of Collins Street office offerings

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Sydney's Burgess Rawson portfolio auction secured $43 million worth of property sales yesterday with yields as low as 4.5%.
Of the 19 NSW properties, auctioneer David Scholes knocked down 11.
<a href="https://www.burgessrawson.com.au/2P0932#.VS3Zy3pMLu0" target="_blank">The Double Bay offering</a> sold to an offshore Chinese buyer for $13.1 million reflecting a yield of 4.8%. There are long standing anchor tenant, ANZ – with options to 2033 on one of the largest blocks of land on 7-9 Knox Street.
The 478 square metre property, still known as Kennedy House, given the retail outlet of the luxury jewellery retailers the Kennedy family.
It has a 778 square metre net lettable area with a value add FSR 2.5:1 potential.
Most of the tenants were on annual 4% rent increases with a current net income of $628,576 per annum plus GST.
Burgess Rawson agent Michael Gilbert marketed the property in conjunction with Allan Levy of Metro Commercial.
Gilbert told the Australian Financial Review a third of contract requests had come from Chinese buyers. 
The ANZ Banking Group initially leased a 372 square metre space from the then landlords Louis Kennedy and Andrew Curtis at $420,000 a year in rent in the late 1980s, in a deal that equated to about $1,130 a square metre.
Mark Foys was previously paying $132,000 a year for the building which had been bought by the Kennedy family in the late 1970s when the rent was $87,000.
Louis Kennedy, the man who brought glomesh handbags to Australia, died in 2008 aged 83.
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Chinese buyer secures Double Bay retail jewel on 4.8% yield

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Melbourne’s World Trade Centre, Tower 4, is almost fully occupied following three new lease deals brokered by Savills Australia.
It has followed a $10 million refurbishment and re-launch.
Clement Lee's Asset1 Group secured leases worth about $650,000 per year in the complex on Melbourne's North Wharf.
Timber plantation company HVP has taken a 733 square metres whole floor.
The English-language training provider SACE has taken 1,000 square metres.
Firelight Technologies has taken 230 square metres.
The deals, negotiated by Savills director Phil Cullity, were struck at net rents of between $320 to $340 a square metre net on five to seven year terms.
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Melbourne World Trade Centre leases take building close to full occupancy

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The sale of 30 St Mary Axe, otherwise known as The Gherkin, was arguably the most iconic building sold in London, and perhaps the world, during 2014.
Selling agents Savills said it was unique because it was an extremely well-known building internationally, it was 100% leased, 100% income producing, and a triple-net lease which means that all of the costs were covered by the tenants.
"So you could say, as an investment, it was 100%," Savills' Stepehn Down said.
It was, however, quite a complicated asset sale. 
"We had to tailor our campaign carefully so that we could be sure we had reached all the stakeholders out there. 95% of our audience could be reached with a normal campaign but it was the remaining five% that required us to really prove our outstanding global reach," Down said.
"We wanted it to be a swift transaction; we wanted the investors to come in and make their bid on an educated basis so that there were no questions, no conditionality or limited conditionality to their bids.
"We received just over 10 bids. 
"The Gherkin had been valued a year or so previously at about £580 million and we thought that we could get closer to £650 million.
"Eventually The Gherkin was sold for £700 million, exceeding almost everyone’s expectation."
On November 10, 2014, contracts were exchanged on The Gherkin.
<a href="https://www.savills.co.uk/blog/article/185219/commercial-property/how-savills-sold-the-gherkin.aspx" target="_blank">A video produced by Savills </a>explaining the process is viewable on their website.
Photo: Creative Commons
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How Savills International sold The Gherkin

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GUEST OBSERVATION
In the 1970s, the renowned University of California architectural professor and author of A Pattern Language, Christopher Alexander lamented that ‘normal’ urban behaviour at the time had become almost schizophrenic, characterised by extreme withdrawal from stress and an unrealistic belief in self-sufficiency.
Over 30 years on, we are surrounded by planning and processes that are often so over-engineered that as humans we are increasingly all but removed from the experience. So pervasive is the effect of this trend, TEDx Melbourne founder Jon Yeo, notes that the selfie is a response by individuals to try to find place and to create a sense of identity.
Yet the rise of Monocle magazine, recently valued at $137.5 million, and Brainpickings, a blog that provides in-depth analysis of seemingly unrelated books and has over 7 million unique readers a month, would suggest a backlash against the trend to dumb things down. Research is showing aspects of the evolution of our urban lives and the design of our work spaces present a significant challenge to our well-being and performance.
<a href="https://www.ted.com/talks/julian_treasure_why_architects_need_to_use_their_ears?language=en#t-392730" target="_blank">Julian Treasure</a> suggests that we are designing environments that are making us crazy. Higher levels of density in urban environments have been shown to result in decreased generosity, increased anxiety and incidences of mental illness (<a href="https://adamalterauthor.com/book/" target="_blank">Alter, 2013</a>). Working and living in noisy environments may in fact be significantly reducing life expectancy. A <a href="https://multi-science.metapress.com/content/y7u5264178784312/" target="_blank">study</a> in Germany found the average noise levels in schools was 65 decibels, not only interfering with learning but causing increases in teacher heart rates that reached the threshold level for a heart attack.
Lefebvre wrote that space is a clue to the lives we lead, who we want to be and what we might be. Some exciting new research by <a href="https://www.theatlantic.com/health/archive/2014/11/the-brain-on-architecture/382090/">Julio Bermudez</a> has uncovered neuroscience insights that city planners, architects and workspace designers can intentionally build into design. Bermudez’s research has identified a scientific link between aspects of architecture and design, the correlation between beauty and experience and outcomes such as well being, mindfulness and discovery.
The Henry Ford West Bloomfield Hospital in Detroit has recently undertaken a <a href="https://workplaceinsight.net/wp-content/uploads/2014/06/Work+Place3.pdf" target="_blank">project</a> to rethink the nature of both patient care, employee experience and it’s role in the community. During the research, the extent of childhood obesity in the community where the hospital was located became evident. Today the environment in the hospital is so inviting and the food so good and affordable, that it’s restaurant is a destination. The facility also has a greenhouse and test kitchens used by local children and schools to learn about growing vegetables and preparing different types of food. As a result of this, the hospital has shifted the paradigm from ‘place to go when you are sick’ to ‘hospital as a community resource for staying well’. In addition, they have innovated in a way that has meant they are not only surviving but thriving, as well as playing a much larger role in the community.
A <a href="https://www.ted.com/talks/alejandro_aravena_my_architectural_philosophy_bring_the_com">project</a> in Chile where the intended residents were brought into the design process, is an encouraging example of a great solution to a problem where limited funds for social housing projects had previously only resulted in undesirable long-term outcomes. Such projects demonstrate ways we might move forward to create work spaces and urban environments that reverse the figure-ground. Such changes will result in important shifts in the way we design places. As Ilse Crawford Head of the Man and Wellbeing Institute notes, design that starts with human experience, prioritise well being and enhance our humanity.
Libby Sander is a PhD Candidate at Griffith University.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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