<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.</p>

<p>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.</p>

<p>“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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.</p>

<p>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.</p>

<p><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" /></p>

<p>“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.</p>

<p>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.</p>

<p>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.</p>

<p>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>.</p>

<p><em>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></em></p>


Joel Robinson

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

<p><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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.”</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>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.</p>


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

<p>Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;</p>

<p>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;</p>

<p>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;</p>

<p>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;</p>

<p>Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;</p>

<p>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;</p>

<p>“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;</p>

<p>“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."</p>

<p>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;</p>

<p>"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;</p>


Bottega House secures landmark riverfront site in St Lucia 

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<p data-end="157" data-start="0">The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.</p>

<p data-end="459" data-start="159"><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.</p>

<p data-end="459" data-start="159">[smartcode_project:default project_id=112661 project_image_fid=359603]</p>

<p data-end="651" data-start="461"><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.</p>

<p data-end="950" data-start="653">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.</p>

<p data-end="1081" data-start="952">“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.</p>

<p data-end="1081" data-start="952">[smartcode_project:default project_id=112661 project_image_fid=355935]</p>

<p data-end="1307" data-start="1083">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.</p>

<p data-end="1522" data-start="1309">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.</p>

<p data-end="1522" data-start="1309">[smartcode_project:default project_id=112661 project_image_fid=361052]</p>

<p data-end="1714" data-start="1524">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.</p>

<p data-end="1945" data-start="1716">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.</p>

<p data-end="1945" data-start="1716">[smartcode_project:default project_id=112661 project_image_fid=359607]</p>

<p data-end="2220" data-is-last-node="" data-is-only-node="" data-start="1947">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.</p>
</section>
</section>

<p>[smartcode_project_cta:default project_id=112661]</p>


SIERA kicks off construction at Northcliffe tower Exhale

<p data-end="320" data-start="79">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>.</p>

<p data-end="638" data-start="322">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.</p>

<p data-end="864" data-start="640">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.</p>

<p>[smartcode_project:default project_id=112343 project_image_fid=352689]</p>

<p>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.</p>

<p><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."</p>

<p>“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.</p>

<p>[smartcode_project:default project_id=112343 project_image_fid=352687]</p>

<p><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.</p>

<p>“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.”</p>

<p>[smartcode_project:default project_id=112343 project_image_fid=352690]</p>

<p>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.</p>

<p>“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.</p>

<p><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.</p>

<p>[smartcode_project_cta:default project_id=112343]</p>


Eastern Suburbs buyers snap up ESTE Little Bay apartments

Office

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<p>The retail and office space at 3/146-152 Cleveland St, Chippendale was the cheapest sale of the weekend.</p>
<p>It fetched $160,000 through Richardson &amp; Wrench Surry Hills having been listed with $150,000 plus hopes.</p>
<p>Its size was 21 square metres.</p>
<p>The retail/office benefited from main street exposure but also had internal landscaped courtyard entrance.</p>
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jchancellor-FAypfDUnLy

Chippendale office cheapie sells for $160,000

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<p>There was a record $533 million of metropolitan Brisbane office transactions in the first half of this year, according to Colliers International.</p>
<p>Colliers’ <em>Competitive Rivalry: Office Versus Residential in Metro Markets</em> report found foreign investors re-emerging over the first half of the year and acquiring $254 million worth of assets.</p>
<p>For instance, Southpoint was purchased for $200.6 million by Union Investment Real Estate.</p>
<p>There were a total of 11 sales during the period, with two foreign companies acquiring the biggest assets, explained director of capital markets for Colliers, Jason Lynch.</p>
<p>“Domestic buyer groups comprised REITS and unlisted institutions which bought up $205 million worth of metro office assets, with the remainder being private investors and property groups,” Lynch said.</p>
<p>“In the last three months there has been an increased amount of Asian investor interest looking to reweight their capital into our CBD and metro markets. A Grade assets, particularly those with long lease terms and good quality tenants are highly sought after.”</p>
<p>But he notes that the issue facing investors at present is a lack of supply.</p>
<p>“The feasibility of developing new large office developments is diminishing due to increasing land values driven primarily by the improved residential apartment market and the CBD’s competitive position with respect to rents and incentives,” he said.</p>
<p>Despite this, forecasts are steady for the Brisbane market.</p>
<p><img src="/images/2014/11/05/chart%20nov%205%20one.jpg" alt=""></p>
<p><em>Source: Colliers International</em></p>
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jduke-EHk3XBmHkn

Brisbane metro office market heating up: Colliers International

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<p>The Adelaide CBD office vacancy rate will hit 15% next year with prices and and effective rents in decline until the end of the decade, according to research firm BIS Shrapnel.</p>
<p><span style="line-height: 1.3em;">The oversupply of office space meant </span><span style="line-height: 1.3em;">Adelaide office buildings are overvalued, said BIS Shrapnel in its </span><em style="line-height: 1.3em;">Adelaide Commercial Property 2014 to 2024</em><span style="line-height: 1.3em;"> report.</span></p>
<p>“Prospective internal rates of return over a five-year investment horizon are less than 3%.</p>
<p>“Against this backdrop, the current weight of investment funds pushing down yields doesn’t make sense,” the r<span style="line-height: 1.3em;">eport author Maria Lee said.</span></p>
<p><span style="line-height: 1.3em;">The most recent sale by German fund SachsenFonds sale of Adelaide office </span>complex<span style="line-height: 1.3em;"> to the Lend Lease-managed Australian Prime Property Fund’s for $175 million last month, came despite the negative forecast backdrop, the <em>Australian Financial Review</em> reported</span></p>
<p><span style="line-height: 1.3em;">It also noted 100 Waymouth Street was fully leased, 108 North Terrace (75% leased) and 169 Pirie Street (60% leased) with</span><span style="line-height: 1.3em;"> 70 Franklin Street which was speculatively built by the Kyren Group being 75% committed</span><span style="line-height: 1.3em;">.</span></p>
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Falling yields in Adelaide office market "doesn't make sense": BIS Shrapnel

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<p><span style="line-height: 1.3em;">Savills, in the 12 months to September 2014, identified 29,989 square metres of leases in the Parramatta market. </span></p>
<p><span style="line-height: 1.3em;">This was up 55% on the 12 months prior, and up on the five year average (22,860 square metres).</span></p>
<p><span><strong>Parramatta office leases to September 2014</strong> </span></p>
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<p><span>Date </span></p>
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<p><span>Property </span></p>
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<p><span>NLA (sq m) </span></p>
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<div class="column">
<p><span>Rent ($/sq m) </span></p>
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<div class="layoutArea">
<div class="column">
<p><span>Tenant </span></p>
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<p><span>Feb-14 </span></p>
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<div class="column">
<p><span>25 George St, Parramatta </span></p>
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<p><span>1,300 </span></p>
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</div>
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<div class="layoutArea">
<div class="column">
<p><span>400 G </span></p>
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</div>
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<div class="layoutArea">
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<p><span>Careers Australia </span></p>
</div>
</div>
</td>
</tr>
<tr>
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<div class="layoutArea">
<div class="column">
<p><span>Feb-14 </span></p>
</div>
</div>
</td>
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<div class="layoutArea">
<div class="column">
<p><span>91 Phillip St, Parramatta </span></p>
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<div class="column">
<p><span>426 </span></p>
</div>
</div>
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<td>
<div class="layoutArea">
<div class="column">
<p><span>350 N </span></p>
</div>
</div>
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<div class="layoutArea">
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<p><span>Knight Frank </span></p>
</div>
</div>
</td>
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<div class="layoutArea">
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<p><span>May-14 </span></p>
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<p><span>426 Church St, Parramatta </span></p>
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<p><span>815 </span></p>
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<div class="layoutArea">
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<p><span>305 N </span></p>
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<p><span>Community Connections </span></p>
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</div>
</td>
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<div class="layoutArea">
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<p><span>May-14 </span></p>
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<p><span>110 George St, Parramatta </span></p>
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<div class="layoutArea">
<div class="column">
<p><span>528 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>335 N </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Government Property NSW </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Aug-14 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>169 Macquarie St, Parramatta </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>26,000 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>na </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>University of Western Sydney </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Sep-14 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>91 Phillip St, Parramatta </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>940 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>na </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>KPMG </span></p>
</div>
</div>
</td>
</tr>
</tbody>
</table>
<div class="layoutArea">
<div class="column">
<p><span style="line-height: 1.3em;">Net absorption of 1,737 square metres was recorded in the Parramatta market in the 12 months to June 2014.</span></p>
<p><span>With only 675 square metres of A Grade available space according to the latest Property Council of Australia (PCA) <em>Office Market Report</em>, Savills says any future demand for prime buildings will likely be soaked up by well positioned secondary grade assets in the short-term, as there are no new major developments under construction. </span></p>
<p><span>This is forecast to continue placing downward pressure on the overall vacancy rate in the Parramatta office market and further reinforcing the need for development of new space in the market. </span></p>
<p><span>Net face rents in Parramatta as at September 2014 typically range between $350 and $450 per square metre per annum for A Grade buildings, and between $265 and $340 per square metre per annum for secondary grade buildings. </span></p>
<p><span>The average A Grade face rent in Parramatta is $400 per square metre per annum, a 7% increase over the last 12 months.</span></p>
</div>
</div>
</div>
<div class="page" title="Page 5">
<div class="layoutArea">
<div class="column">
<p><span>As a result of the University of Western Sydney committing to 1PSQ, Government and Community was the dominant sector <span><span> in the Parramatta office market in the last 12 months</span></span>, accounting for 95% of the stock, or 28,623 square metres o<span>f the 29,989 square metres leased</span>. Similarly, the largest number of transactions was through the Government and Community sector (four transactions).</span></p>
<p><span>The latest PCA <em>Office Market Report</em> shows that the overall vacancy rate in Parramatta decreased by 0.8 percentage points over the 12 months to June 2014 and currently sits at 6.7%. Parramatta vacancy has experienced a downward trend since July 2010, where vacancy was as high as 10.8%. </span></p>
<p><span>Over the last 12 months, A Grade vacancy in Parramatta fell by 2.2 percentage points to an all time low of just 0.2% (675 square metres). This reflects a decline of approximately 5,539 square metres of available space over the period. However, the PCA recorded an increase of 18,600 square metres in total A Grade stock due to a regrade of buildings over the same period. B Grade vacancy in Parramatta recorded an increase from 5.3 % to 9.5% over the last 12 months. </span></p>
<p><span>With no new office supply expected in Parramatta until 2016, coupled with limited A Grade offerings in the market, strong demand in the precommitment market is expected, as well as a tangible benefit to the secondary market in the short-term. </span></p>
</div>
</div>
<br><table>
<colgroup>
<col>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Grade </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Stock (sq m) </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Vacancy (sq m) </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Vac % Jun-14 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Vac % Jun-13 </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>A Grade </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>273,617 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>675 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>0.2 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>2.4 </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>B Grade </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>212,026 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>20,182 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>9.5 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>5.3 </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>C Grade </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>104,972 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>19,234 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>18.3 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>17.2 </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>D Grade </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>97,413 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>6,096 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>6.3 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>9.0 </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Total </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>688,028 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>46,187 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>6.7 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>7.5 </span></p>
</div>
</div>
</td>
</tr>
</tbody>
</table>
<br><div class="layoutArea">
<div class="column">
<p><span> </span></p>
</div>
</div>
</div>
</body></html>

Parramatta has downward pressure on office vacancy rate: Savills

<html><body>
<p>With all the attention on Chinese Melbourne CBD development site acquisitions, one of the low-key Melbourne CBD sales this year has been the office block, 50 Queen Street.</p>
<p>Last sold in 2007 at $31 million, it has been sold at $40.7 million by Centuria Property Funds Limited.</p>
<p>Coweley Queen Pty Ltd, a subsidiary of the foreign based company Coweley Limited, purchased the property.</p>
<p>Coweley Limited is directed by Sydney locals, Klaus Knoblauch and Craig Stuckey, in conjunction with the Roquebrune Cap Martin, France based, but Paddington, Sydney born director Peter Ranger and the Switzerland based Massimo Pedrazzini.</p>
<p>The property was part of the Becton Office Fund No. 2 which Centuria took over in September 2010, at which time the property valuation was $26.5 million.</p>
<p>The off market sale price was 25% in excess of the latest 31 December 2013 independent valuation.</p>
<p>Its 2007 sale was marketed as a 16-level, 34 year old B-grade building.</p>
<p>The building, at the corner of Flinders Lane, is about 9650 square metres and is occupied by several small tenancies.</p>
<p>Set at the corner of Flinders Lane, it was offloaded in 2007 by Singaporean investor George Chow, who paid $13.4 million in October 1991.</p>
<p>Back in the late 1980s when on the books of the Capita Prime Property Fund (formerly the City Mutual Property Trust), the office block had a $22 million valuation.</p>
<p>Centuria Property Funds latest sale was an office tower in St Kilda Road to the ­property arm of the Dymocks group for $82.1 million.</p>
<p>Centuria acquired 441 St Kilda Road in 2012 for $58 million on a single investor mandate.</p>
</body></html>

50 Queen Street, Melbourne office tower sold

<html><body>
<p class="Normal">Demand for residential property is leading to an increasing number of secondary office buildings being converted into apartments despite the challenges posed by repurposing commercial buildings.</p>
<p class="Normal">Converting some commercial properties to residential uses was like “trying to squeeze a square peg into a round hole”, Colliers International director of project marketing residential Curtis Field told <span class="Normal__Char" style="font-style: italic;">Property Observer</span>.</p>
<p class="Normal">“What works for commercial office buildings, like having lift wells in the centre of the building, may not work for residential,” said Field, who spoke on the topic at the Retrofit and Refurb conference in Sydney last week.</p>
<p class="Normal">Compromises may have to be made in turning a commercial floor plan into residential apartments, as contestants in reality TV show <em>The Block Glasshouse</em> have discovered.</p>
<p class="Normal">Ceiling heights can be a problem because commercial buildings are designed as offices, not residences. It might also be difficult to obtain adequate light and ventilation for each apartment.</p>
<p class="Normal">“It’s sometimes really hard to meet those planning requirements,” Field said, adding that it was becoming less of an issue to overcome the problems and the benefits usually outweighed the challenges.</p>
<p class="Normal"><span class="Normal__Char" style="font-weight: bold;">Benefits worth the challenges</span></p>
<p class="Normal">Converting an existing office building to residential uses meant developers could often achieve larger apartment buildings than if they were seeking approval for a new structure, Field said.</p>
<p class="Normal">“That happens in the CBD where an office was allowed to be 10 to 12 storeys tall but if you knocked that building down you might not be able to get planning approval to construct a new building to that height,” he said. “You’re getting something that could not be constructed now.”</p>
<p class="Normal">Another plus for developers was that there was less impact on the local community and neighbours could not complain about issues such as loss of views if the building was already in place.</p>
<p class="Normal">“If you talk to builders about converting a building that’s already there they say it doesn’t save on construction costs but from a time table point of view you don’t have six months of demolition and then 12 to 18 months of heavy construction. It’s really a fit out job,” Field said.</p>
<p class="Normal">“From a sales point of view you can see the building and what views you are going to get where off-the-plan is hard to visualise,” Field said.</p>
<p class="Normal"><span class="Normal__Char" style="font-weight: bold;">Factors facilitating conversions</span></p>
<p class="Normal">Changes to zoning and heritage restrictions have been allowing developers to convert commercial buildings to residential uses, which previously would not have been permitted.</p>
<p class="Normal">“We are seeing that in industrial zoning like in South Sydney which used to be industrial,” Field said.</p>
<p class="Normal">Secondary commercial properties in the CBD and elsewhere could deliver higher returns on investment if converted to apartments when zoning permitted, Field said.</p>
<p class="Normal">“Milsons Point in Sydney is a classic example where commercial tenants were attracted back to the city, North Sydney and North Ryde which made those buildings almost obsolete because the costs to upgrade outweighed the return you would get from commercial tenants whereas they have become highly desirable as residential,” he said.</p>
<p class="Normal">Superannuation fund CBUS is working on the conversion of Vibe Hotel at 88 Alfred Street, Milsons Point, which it bought earlier this year for about $80 million, to between 130 and 140 residential apartments.</p>
<p class="Normal">The superannuation fund also owns a commercial building at 130 Elizabeth Street opposite Hyde Park in central Sydney, which recently received stage 1 development approval to be converted to apartments.</p>
<p class="Normal">Foreign investors have bought buildings on the Hyde Park fringe and while many are commercial investments now, Field said they were being repositioned as residential development opportunities because of their views.</p>
<p class="Normal">Singaporean investors have development applications before council on 227 Elizabeth Street with plans to develop 140 apartments in the building, which overlooks the Hyde Park.</p>
<p class="Normal">Elsewhere in Sydney, Chinese investors bought 286 Sussex Street in late 2013 with plans to convert the vacant office building to residences. The Goldfields House commercial building at 1 Alfred Street was bought by US and Dutch investors for residential conversion.</p>
<p class="Normal">Field estimates there is between 110,000 and 180,000 square metres of commercial floor space in Sydney earmarked for conversion to residences over the next five years.</p>
<p class="Normal">A separate report by JLL Research estimated that nationally, 46,940sqm of office property was withdrawn for residential development in 2013 – up from 25,794 the year before.</p>
</body></html>

zfielding-GvX3Uq9KTa

Office conversions to residences on the rise

<html><body>
<p>The underlying demand for office markets fell in August 2014 to just 125,000 square metres nationally, according to BIS Shrapnel’s latest statistics.</p>
<p>The decline that had been expected by BIS Shrapnel has seen underlying demand remain modest in recent quarters and far below the long-term average.</p>
<p>The 10-year average demand is 660,000 square metres.</p>
<p><img src="/images/2014/10/1/Picture%2018.png" alt=""><br><br><em>Source: BIS Shrapnel</em></p>
<p>Net absorption may, however, improve, according to senior project manager Maria Lee.</p>
<p>“Underlying demand is usually a lead indicator of net absorption (the change in occupied floorspace from one period to the next). We haven’t yet seen the improvement in underlying demand after the slump in 2013 fully feed through to net absorption. As such, we should see net absorption move back into positive territory by the end of 2014,” said Lee.</p>
<p>She noted that underlying demand is expected to pick up in the November 2014 quarter as the November 2013 data drops out of the calculation.</p>
<p>Employment, obviously a key data set for individual industry areas, has seen property and business services rebounding, a decline in public administration and safety, and stability in the financial and investment services sector.</p>
</body></html>

Demand for office space falls across August: BIS Shrapnel

<html><body>
<p>Those expecting an uptick in the office market across 2014 and 2015, particularly in terms of tenant demand, will not be disappointed, according to DTZ’s forecast.</p>
<p class="Default">DTZ’s latest Sydney CBD Offices research alert notes that even in their most severe downturn scenario, the net absorption rate remains positive, though well below baseline.</p>
<p class="Default">However, this will be a slow and steady situation with out-performance not expected. Risks are also expected to continue, with a prospective financial crisis in China as a result of unsustainable credit growth in their property sector.</p>
<p class="Default">When the supply cycle closes in 2017/2018, tenant demand is forecast to push rents up from 2% to 5% depending on the forecast scenario. Late 2016 will start to see the situation become neutral for tenants, while the present environment offers them the choice of the market.</p>
<p class="Default">Property Council of Australia figures are already pointing to a shift. For instance, over the two and a half years to the first half of 2013, net absorption was 37,000 square metres. However, in the 12 months to the first half of 2014, net absorption totaled 57,000 square metres due to a resurgence in the IT sector.</p>
<p class="Default">Office supply, however, is one of the biggest aspects of the Sydney market analysis provided by DTZ. With large scale additions and withdrawals from the market, the timing is crucial in determining the performance of the market. Supply is expected to strongly increase, with more than 700,000 square metres planned for between 2015 and 2018, which exceeds the long-term 140,000 square metre per annum average. This is due to large projects, such as International Towers Sydney and George Street-located projects.</p>
<p class="Default">The number of offices set to be permanently removed from the market is also noted, as they undergo redevelopment into residential and even hotel offerings – often by offshore purchasers.</p>
<p class="Default">They record almost 275,000 square metres of secondary-grade office space which is expected to be removed from the office market over the medium term, all for alternate uses. You can see their locations on the map below. Much of this appears to be in mid-town.</p>
<p class="Default"> <img src="/images/2014/09/24/chart-sept-24-one.jpg" alt=""></p>
<p class="Default">In Sydney, developers are looking to get a foothold in the profitable residential market, snapping up lower grade stock for this purpose.</p>
<p class="Default">Just last week, <em>Property Observe</em>r reported that <a href="/expert-insights/investing/cities-facing-imminent-shortage-of-office-development-sites-colliers">Colliers International’s latest reports forecast cities Australia-wide facing an imminent shortage of office supply due to these redevelopments</a>.</p>
<p>Despite this, 303,000 square metres of additional stock is expected between the second half of 2014 and the end of 2018, while the outlook remains stronger than in recent past years.</p>
<p>“In line with the baseline forecasts, tenant demand is expected to increase and diversify beyond its current limits of the IT and Telecommunications sector, as economic recovery gathers momentum,” the DTZ report explains.</p>
<p>Vacancies are expected to remain at a range between 8% and 11.3%, even as rents grow. The resurgence, it appears, is in its infancy.</p>
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Sydney's office market can withstand even worst scenario: DTZ

<html><body>
<p>The Make-A-Wish Foundation children's charity has listed its Richmond office for 16 October auction.</p>
<p>It is a double-storey office at <a href="https://www.realcommercial.com.au/property-offices-vic-richmond-501298851" target="_blank">383 Swan Street in Richmond</a>, with 565 square metre office space on a 405 square metre block opposite Burnley train station.</p>
<p>The inner east holding is tipped to sell for about $3 million through <span style="line-height: 1.3em;">Colliers International.</span></p>
<p><span style="line-height: 1.3em;">It includes six car parks.</span></p>
<p>Make-A-Wish is moving to a larger Richmond rented premises.</p>
<p>They bought the property in 2004 for $1.35 million.</p>
<p>In July, another inner city charity, the Smith Family, sold its Collingwood offices to property developers to also become a tenant. </p>
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Make-A-Wish list Richmond offices

<html><body>
<p>Australia is about to face a shortage of office development sites, according to a new report.</p>
<p>Colliers International’s <em>Competitive Rivalry: Office Versus Residential in Metro Markets</em> report suggests that increased appetite for residential development is now driving the metropolitan office markets.</p>
<p>In most metropolitan markets the demand is heating up, said John Marasco, Colliers International managing director of capital markets and investment services. He noted that developers are increasingly building residential properties on land previously earmarked for office developments.</p>
<p>“This is increasing competitive pressure on land values across metropolitan office markets, at the same time as demand from investors for office investments continues,” Marasco said.</p>
<p>“Zoned sites and existing commercial buildings are being converted to residential at an increasing rate, and in metropolitan markets this had led to minimal new development of office buildings. This increased competition has resulted in a tightening in yields for most eastern seaboard markets, following the similar trend witnessed in CBD office markets on the east coast.”</p>
<p>Nationally, new development supply of office space to the metropolitan market is recorded by Colliers to be at 124,996 square metres in 2014. In 2015, this figure is 100,963 square metres, with Victoria and Queensland driving the supply through 2014 – adding up to 37.6% and 33.6% respectively.</p>
<p>Marasco says that investors are increasingly demanding A Grade metropolitan office assets, particularly noting that institutional investors are expressing interest.</p>
<p>The graph below describes the type of buyers purchasing metro office stock:</p>
<p><img src="/images/2014/09/17/chart%20sept%2017.jpg" alt=""></p>
<p>“Institutional investors remain highly active in the metropolitan office markets, accounting for 69% of total sales volume during the year,” he said.</p>
<p>“Compared to last year, there is a significant shift towards domestic investment in metro markets, in particular domestic institutional investment. Last year, offshore investment in metro markets was driving the lion’s share of investment.”</p>
<p>Attractive yields and occasional development upsides are behind the demand. Marasco said that the hotspots of New South Wales’ Parramatta, Queensland’s Fortitude Valley and Victoria’s Chadstone are on investors’ radars.</p>
</body></html>

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