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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A converted Surry Hills warehouse has been listed.
The approximately 797 square metres property at 19 Foster Street comprises circa 3,154 square metres of NLA.
The property is 100 percent let, with a WALE of 2.4 years (as at 1 September 2018).
It has dual street frontage to Foster Street and Wentworth Avenue. 
The industrial-style space was refurbished in 2013 with high ceilings, polished concrete floors and exposed brickwork.
It has been listed for sale through Knight Frank’s Jonathan Vaughan and John Bowie Wilson, with Karbon Property’s James McCourt and Joshua Watts, on behalf of Security Capital Australia. 
Vaughan said commercial properties in the area are tightly held.
“Substantial office buildings in Surry Hills are highly sought after by investors as they don’t come to market very often and we are continuing to see an increase in interest in the city fringe, with a number of groups now undertaking active city fringe buying strategies,” Vaughan said.
“Further, the asset’s favourable lease expiry profile and low rental base will provide an incoming owner the opportunity to add significant value by leveraging one of the most sought after leasing markets in the country.
“With opportunities such as these hard to come by and the asset catering to a generational shift in the occupier market, we expect the industrial-style creative space will draw significant interest from local and offshore investors.”
McCourt said the Sydney city fringe area had the lowest vacancy rate of any commercial market in Australia.
“The vacancy rate in Surry Hills has been contracting for three consecutive years as it has become the number on destination for the growing TAMI sector.
“As a result vacancy in the city fringe area was sitting at around 3% relative to 4.6% in the Sydney CBD, as at January 2018. 
“The falling vacancy rate combined with growing demand and limited supply has led to substantial growth in prime rents in recent years.
“This provides the incoming owner with the opportunity to benefit from a substantial reversionary uplift in 19 Foster Street.”
The expression of interest campaign is set to close at 4pm on Wednesday 31 October.
 
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j.ballantyne1990-6AQqhLzZaK

Converted Surry Hills warehouse office building listed

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The launch of 32 strata commercial suites at Mirvac’s St Leonards Square mixed-use development on the weekend saw some 85% sold within hours of their release.
Strata suites ranged from 57 square metres to 210 square metres with an average $9,500 per square metre achieved on the day. 
The highest price paid among the 27 sales was in excess of $1.8 million.
Medical practitioners were most prominent amongst buyers with many citing a lack of strata office space available to purchase.
Oral and maxillo facial surgeon Dr Adit Bahl had been trying to find suitable commercial premises for some time before he finally purchased at St Leonards Square.
The commercial strata sales result follows the success of residential sales at St Leonards Square, where the two residential towers achieved more than 70% pre-sales at their 2016 launch and are currently 99% sold, ahead of completion in late 2019.
Several purchasers at the weekend acquired multiple lots.
Some intend to consolidate the space to form larger floorplates.
A decade long strata office scarcity reportedly fuelled demand for St Leonards Square, along with its proximity to the future Crows Nest Metro station and the Royal North Shore Hospital medical precinct.
Virgin Active earlier this year secured 1,150 square metres at St Leonards Square, taking the entire first floor in one of the two towers, plus a ground floor space to serve as a concierge and entry directly off the Pacific Highway, helping to integrate commercial and retail uses.
Mark Levy of marketing design and production marketing company What To Do canvassed his staff before he purchased.
“There needs to be amenity; you can’t have your business in the middle of nowhere when most of your staff are under 35,” he said.
Financial planner Jason Abrahams of Critique Private Clients ended his five-year search for new office space, acquiring a 192 square metres suite.
“There is plenty of space for lease but we haven’t been able to find anything decent for sale in St Leonards,” said Abrahams, who will relocate from his current office next door.
“We like the St Leonards location; it’seasier for clients to get to us on the north side than into the city.”
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/20/E07_Lobby_Exterior.jpg" alt="">
“We have the train already and the Metro going in across the road. I’ve been here 10 years and I would not want to go anywhere else. It is an area that is only going to get more exciting. With the public transport and retailgoing into St Leonards Square, that adds to the work experience for our staff.”
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/20/I01_Foyer.jpg" alt="">
One couple, George and Robyn Nori, will not only be moving their business, How Strategy Group, to St Leonards Square on completion next year but will also be living there.
With their three bedroom apartment which they purchased last year on Level 15 and their workplace on Level 3, they will enjoy a completely commute-free lifestyle.
St Leonards Square commercial is being sold by Mirvac in conjunction with Knight Frank North Sydney.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/20/I02_Office.jpg" alt="">
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Mirvac achieves 85% sales at St Leonards Square strata office launch

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Pump and water treatment systems manufacturer AKS Industries has leased a level one office space Melbourne CBD’s historic Scottish House.
Stephen Land of Fitzroys negotiated the three-year deal for the 290 square metre space within the 90 William Street building, at $124,700 per annum gross on behalf of a private owner.
Land said the property’s high ceilings, ample natural light and William Street aspect was a drawcard for prospective tenants, as well as its location in an evolving part of the CBD.
“The large number of developments through the CBD’s western corridor has seen a growing range of tenants enquire for spaces in this part of the city, beyond the law firms seeking a place close to the legal precinct,” he said.
Scottish House is just metres from the dual-tower, office, hotel and residential Collins Arch development at 447 Collins Street, on the corner of William Street, as well as Mirvac’s Olderfleet project at 477 Collins Street, which will bring more than 52,000 square metres of new office space.
“Tenants were looking for an opportunity to take up a character space in the CBD, while being able to enjoy the increasing number of lifestyle and food and beverage offerings being delivered nearby in response to the booming worker population,” Land said.
The six-storey Scottish House building was designed for prominent shipping agents McIlwraith McEacharn Ltd in 1907, by architect Charles D’Ebro, and was their head office for more than 70 years.
The Heritage Council Victoria has deemed Scottish House as architecturally significant “as an office building that expresses both in style and structure the commercial values and status of a leading Australian company”.
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New tenants for Melbourne CBD’s Scottish House pumped for move

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Following the introduction of new planning and density controls in Melbourne's Central City Zone last year, architeePlan Melbourne forecasts Melbourne's population to hit 10 million by 2051, carrying with it an additional 1.5 million jobs that need to be accommodated within an increasingly changing workforce. This has spurred the demand for both new commercial stock and the revitalisation of older commercial developments with Melbourne City Council’s data showing that 25 buildings are currently under construction within the Hoddle Grid.

Urban.com.au spoke to <a href="/architects/bates-smart">Bates Smart</a> Director Julian Anderson, who shared his insights into the impacts of Victorian planning controls on the future of the city’s commercial opportunities.

Despite the best of intentions, says Anderson the planning controls that were introduced last year relating to the permissible size of developments in the <a href="/new-apartments/melbourne-vic">CBD</a> and <a href="/new-apartments/southbank-vic-3006">Southbank</a> are having a significant impact on Melbourne’s skyline. The controls were brought in to arrest construction of a wave of residential towers on the north and western edges of the city — towers that "display little regard for liveability for their inhabitants or the public." 

The Victorian Government’s intention is to “provide improved public amenity and deliver consistency and certainty that will ensure our city grows in a way that enhances all that make it the world’s most liveable city”.

The aspirations are laudable, says Anderson particularly in light of recent developments completed in the CBD which have been up to four times larger than the new controls would allow under a 18:1 plot ratio. In basic terms, the new provisions allow a maximum of 18 square metres of floor area to be developed for every square metre of site area. For example, a 2,000 sqm site can deliver a maximum of 36,000 sqm of floor area. More floor area will be permissable if additional public or strategic benefit is provided such as public open space, affordable housing or commercial office space.

One unintended outcome however, notes Anderson, has been the impact on the viability of commercial office towers, not with respect to height but rather when applying the setbacks required under the controls. This lead to Bates Smart undertaking the assessment of sites within the Hoddle Grid which are feasible for commercial development with a 1,500sqm NLA floorplate which based on their experience is the minimum required by both developers and tenants.

The office initially undertook an assessment of the impact of the new controls on residential development for their existing clients but realised it would be new commercial office developments which would be most impacted. As a comparison, the current crop of office developments which are under construction (save for one or two) were all permitted under the previous planning regime but wouldn't meet the setback requirements of the new controls.

Based on benchmarking their own office developments, Bates Smart determined that to achieve a 1,500sqm floorplate, a site of 3,000sqm would be required to achieve the necessary setbacks. Then a process of subtraction was undertaken, sites with development permits, landmark civic buildings, existing high-rise towers, strata titles were excluded and the potential for site consolidation was also considered. "The result?" says Anderson, fewer than six potential sites that could accommodate a viable commercial office tower.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/180507_city_development_study_small-10.jpg" rel="gallery-all" title="Bates Smart's development study highlights sites capable of accommodating office development. Image: Bates Smart"><img alt="" class="image-article-full-width-580px" height="437" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/180507_city_development_study_small-10.jpg?itok=wgeGO_md" title="Bates Smart's development study highlights sites capable of accommodating office development. Image: Bates Smart" width="580"></a>

<figcaption>Bates Smart's development study highlights sites capable of accommodating office development. Image: Bates Smart</figcaption></figure>One possible solution is to introduce two distinguishable sets of planning controls for residential and commercial development in the central city. The requirements for office developments with respect to privacy, natural light and adjacencies to other buildings are not as onerous as they are for residential buildings.

Anderson believes if nothing is done landowners will  eventually realise many sites can’t be developed, which will trigger the amalgamation of adjoining sites to maximise development potential. This however leads to protracted negotiation periods, slower development times and fewer opportunities.

Similarly, we may see more developments relying on the purchase of “air rights” — the underutilised space above a building. An adjacent owner can purchase those air rights to enable construction of part of their building into that space. Another potential corollary is the delivery of more slender residential towers because the controls also dictate that the taller a building, the further it must be set back from its boundaries.

Anderson cites New York, where amalgamated sites or those subject to development resulting from the purchase of air rights brought about a raft of super-slim towers. These are very costly because of additional structural requirements and the effects of wind on their slender forms.

As well, the proportion of structure to floor area cuts the net saleable area. This drives developers to build higher in an attempt to claw back profit forgone from lost floor space. Matching the high construction costs are the sky-high prices of $US4 million for a two-bedroom apartment on the 10th floor of a midtown apartment block or $US20 million for a two-bedroom apartment on the 50th floor of a midtown tower, for example.

Melbourne has its own example of this new tower form, with the Bates Smart'-designed Collins House site at <a href="/buildings/collins-house-melbourne-460-466-collins-street-melbourne">466 Collins Street</a>. Approved under the previous planning scheme, the 57-storey apartment building is under construction and when complete, will be the world’s fourth slimmest tower.

Anderson says Melbourne’s future and title as a liveable city lies in our ability to plan for the careful expansion of the city and to find opportunities to relax our planning controls. This would allow for major urban regeneration projects to flourish and accommodate our future needs.

<h2>What they say</h2>

<blockquote>
Our research and recent experience has established that developers and tenants are looking for floorplates sized no less than 1,500sqm NLA in CBD zones. There are several factors driving this area requirement. 
Reasonably, developers require a level of pre-commitment from tenants prior to embarking on projects.

These tenants seeking floorplates that minimise distribution of staff across multiple floors. These floorplates can cater to over 100 people and offer open-plan floor space with good access to natural light and views to assure physical and mental wellbeing of the occupants.

The challenge with the planning controls is that rather than stimulating commercial development in the CBD, it stifles it. A floorplate of 1,500sqm under these controls requires a site area of around 3,000sqm. However, by the time you factor in the setbacks and other height controls, there are very few developable sites remaining.

In recent months, our team has conducted research establishing that there are fewer than six potential sites in the CBD that will support development over 80m in height, with floorplates not less than 1,500sqm in area. We concur with various industry sources on predictions that the commercial pipeline could be exhausted in the next decade.

- Julian Anderson, Director Bates Smart
</blockquote>

<blockquote>
It’s predicted that demand for commercial office space in the CBD will almost double over the next 30-35 years – this means Melbourne’s city will need an additional 4 million sqm of commercial space to match demand, largely driven by a booming population and forecast jobs growth.

This is a major challenge for Melbourne and we continue to work with the Victorian Government and the City of Melbourne to ensure that our planning processes not only reflect the needs of the market but can support the needs of our growing city into the future.

- Roger Teale, Property Council of Australia, Victorian President
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Laurence Dragomir

Bates Smart's Julian Anderson discusses commercial development feasibility in Melbourne's central city

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The Sydney CBD is facing a potential shortage of office supply at the end of the current development cycle, according to Colliers International.
“If white collar employment continues to grow at the forecast rates, we could realistically see longer term vacany rates fall back to historically low levels as the supply of new office space tapers off after the current pipline is delivered.
“New South Wales’ infrastructure boom has transformed the Sydney CBD into a vibrant and connected city. It’s now a vibrant and active city, almost unrecognisable from five years ago. 
“The NSW Government has initiated more than 40 infrastructure projects, with major developments such as the Sydney Light Rail and Sydney Metro train project set to catapult Sydney to a world class status.”
Colliers International research has found more than one million square metres of office space could be required in the Sydney CBD to satisfy white collar employment growth over the next 25 years. (See Graph 2).
“Counter-balancing the delivery of new office buildings between now and 2025, several existing office buildings will be withdrawn from the market and not returned as office towers in the next cycle, particularly in the precinct around Hyde Park where there will be a significant amount of conversion to hotel and residential use,” Mr Woodward said.
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Based upon this information, Colliers International forecasts the Sydney CBD vacancy rate may peak at only 6.7% in January 2025. (See Graph 3)
“There is limited new supply mooted for 2025 and beyond, and history has demonstrated that it can take 10-plus years to amalgamate significant land holdings, obtain the required planning consents and then tenant pre-commitment levels that feasibly allow a new development to commence,” Mr Woodward said. (See Graph 4).
“The developments at 200 George Street and 161 Castlereagh Street took over a decade to move from conception to delivery, and current projects such as Wynyard Place, Quay Quarter Tower and Circular Quay Tower are further examples of the long lead times to deliver new buildings.
“Our top tier institutional asset managers and developers are acutely aware of this longer term situation and are preparing now for the future.
“For example, Lendlease has amalgamated a ‘mega site’ on Spring and O’Connell Streets, adjoining 1 O’Connell Street. Many other developers and asset managers are seeking similar income-producing land banks to position themselves for the future.
“As a result of these conditions, and despite the fact the Sydney CBD has already reached record low yields and capital value peaks, purchasers are are still investing with a high conviction that the market will deliver strong returns moving forward. 
“We have never witnessed such a deep and diverse pool of global investors competing with our domestic fund managers and pension funds. Sydney is genuine global gateway city, and is the number one investment destination for international fund giants, sovereign wealth and pension funds and private investors alike, who all see long term value in the Sydney CBD office sector.”
Cameron Williams, Colliers International National Director of Office Leasing, said Sydney’s infrastructure boom had the potential to create a new future hot spot in the CBD office market as supply tightened in traditional precincts. 
“Currently, development is concentrated in the northern/core precinct but given the Sydney CBD commercial market is constrained along its eastern and western borders – and that vacancy is expected to remain low for the foreseeable future,” Mr Williams said. “The southern CBD corridor – south of Goulburn Street, to Central Station and beyond – is the likely next geographic location that can supply the CBD of Sydney with a significant amount of office space in the next 10 years. 
“With infrastructure projects such as Sydney Metro and Sydney Light Rail currently underway, those locations will become more connected and much more acceptable from a productivity perspective, not to mention easy to access for commuting staff.
“We see the potential for Central Station to become the next Barangaroo, to potentially to supply hundreds of thousands of square metres of office space to the market in 10 years or so.
“The southern precinct of the Sydney CBD is likely to be the next office hot spot from 2025 and beyond, with the potential to deliver more affordable space and provide an alternative location for organisations perhaps considering decentralisation to western Sydney.”
 
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Sydney's Central Station to be the city's next Barangaroo

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An Epping office block has sold for $36 million to a private buyer, a 118 percent increase on its $16.5 million purchase in 2014.
Centuria Metropolitan REIT (CMA) secured the sale of <a href="https://www.commercialrealestate.com.au/property/3-carlingford-road-epping-nsw-2121-2014378111" target="_blank">3 Carlingford Road</a>, which was sold fully-leased with a passing yield of 5.4 perecent.
The property gained a 27.2% premium between its last independent valuation in November 2017 and the sale.
CMA's Nicholas Blake said there were more than a dozen bidders competing for the block.
 “We are clearly continuing to see a strong demand for metropolitan property – and in particular for high quality properties with development potential," Blake said.
“We usually look for and manage properties with an eye to leaving their purpose and use open-ended. Such flexibility is the best strategy to future-proof assets for investors, as well as addressing the need for high quality suburban stock.”
The sale campaign was run by Guillaume Volz and Henry Burke of Colliers International and Tim Grosmann and Graeme Russell from Savills.
Grosmann said the excellent result on Epping is a direct result of prime property fundamentals; a corner block, close proximity to a train station and strong rental reversion in a market that is starved of commercial suburban stock.
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jrobinson-rf4aSBido9

Epping office block sells for double its 2014 price

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Office space in Melbourne’s iconic Tea House has become available for lease for the first time in four years as a growing number of businesses look for unconventional work environments.
Savills Australia’s Mathew Kent has been appointed to lease the prominent building at 28 Clarendon Street, Southbank.
It is anticipating interest from traditional corporate tenants, and the IT, insurance, interior design and fringe-based service sectors wanting to be close to the CBD.
“The Tea House has not been available since 2014 and since that time, there has been a surge in co-working business models, suite strategies, and employers wanting non-conventional office space for their employees,” Kent said.
“We have seen increased demand from tenants wanting to offer their employees an industrial-style office environment with exposed brick, creative break-out areas and a high standard of amenity – criteria that the Tea House meets, with the added charm of its heritage history.”
The building’s five floors are available for lease, with areas ranging from 567 square metres to 2,875 square metres, with the top floor offering a vaulted exposed ceiling and amazing natural light,” Kent said.
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Built in the late 1880s, the Tea House is best known for its stunning red brick facade and historic features.
“The landlord is now undertaking a major refurbishment to ensure the building meets today’s contemporary standards,” Kent said.
The new design will incorporate new lifts, a new ceiling grid, new lighting and new floor coverings.
Kent said the prime Southbank location, opposite the Crown entertainment complex and adjacent the Melbourne Convention and Exhibition Centre, would be a key drawcard for prospective tenants.
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Tea time for new tenants at the Tea House

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Lendlease have received approval for a second engineered timber office building in Barangaroo South.
The building, which will be known as Daramu House, translated to tree house in the aboriginal Sydney language.
Its construction will follow the completion of International House Sydney at Barangaroo in 2017.
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Daramu House will be Lendlease’s sixth engineered timber building in Australia.
The new building, which will be completed in late 2019, will front Hickson Road and will consist of more than 10,000 sqm of commercial floor space and around 680 sqm of new retail.
Daramu House will include the use of sustainable timbers, as well as roof-top planting to capture rain, and solar photo-voltaic cells to enable power to the building and the precinct.
Barangaroo South managing director Rob Deck said Daramu House will provide tenants with health and wellbeing benefits combined with a warm, clean and natural environment.
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“This building will be Lendlease’s sixth engineered timber building in Australia, joining its neighbour, International House Sydney as well as 25 King St in Brisbane, the Forte Apartments and Library at The Dock in Melbourne, and the Jordan Springs Community Hub in Western Sydney," Deck said.
“With engineering by Lendlease’s DesignMake business, Daramu House will offer ground level retail tenancies, six floors of office space constructed from cross laminated timber and glulam (glue laminated timber), a building material with a structural strength akin to concrete and steel. 
“Lendlease is committed to achieving innovative and sustainable solutions. Barangaroo South has already achieved Australia’s first 6 star Green Star Communities rating and WELL Certification for Core &amp; Shell at the Platinum level, the highest certification available. 
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Barangaroo South set for second timber office tower dubbed Daramu House

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Investa Office Fund has secured Mills Oakley Lawyers as tenants at Barrack Place.
The firm will take 5,673sqm at 151 Clarence Street, Sydney across levels 7 to 12.
It is for an 11 year term commencing 1 January 2019.
Mills Oakley is a top 10 national law firm with offices in Melbourne, Sydney, Brisbane, Canberra and Perth.
The AFL to Mills Oakley represents 26% of the building’s Net Lettable Area on completion.
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The pre-commitment at Barrack Place now stands at 83% of total NLA with a weighted average lease term of 9.8 years.
Mills Oakley will join multinational professional services firm ARUP (35% of NLA) and leading biopharmaceutical company Pfizer (21% of NLA) in this prime grade building.
Penny Ransom, IOF Fund Manager said securing a third major tenant, the calibre of Mills Oakley, was an "outstanding outcome" for the fund 
Practical completion remains on target for October this year.
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Investa secure Mills Oakley Lawyers at Barrack Place

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A contemporary inner-city Preston office suite has been leased  within one day of it becoming available.
The 525 High Street space is located 500 metres from Preston Train Station, Preston Market and an array of cafes and restaurants.
The ground floor office was leased to CVGT Pty Ltd, an employment services company on a three year lease plus options for $40,000 per annum, equating to a building rate of $239.52 per square metre for the 167 square metre space.
The fully partitioned office further features staff amenities including shower, air-conditioning throughout and secure under cover parking.
John Star of CVA had the listing.
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