Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

Savills

<html><body>
A multifaceted Hotel Motel in Hay Point with beachfront views has hit the market.
Savills Hotels agents Leon Alaban, Brent McCarthy and Christian Tsailikis are marketing the property in an area where the market is bouncing back due to a resurgence in mining activity. 
The Hay Point Hotel Motel at <a href="https://www.commercialrealestate.com.au/property/1272-hay-point-road-hay-point-qld-4740-2014383310" target="_blank">1272 Hay Point Road</a> has a June 20 auction, with local and interstate investors expected to be interested.
Christian Tsalikis said it was an ideal time to purchase the asset.   
“The successful purchaser is presented with an opportunity to acquire the asset at a time where market conditions in the region are continuing to improve," he said.
“With the local economy primarily underpinned by tourism, agriculture and mining activity, the influx of visitors to the area throughout this period has set the local economy on a steady incline."
The two hectare ocean front site located around 40 kilometres south of Mackay is minutes from the Dalrymple Bay and the BMA Hay Point coal terminals. 
“The waterfront exposure is arguably the main attraction of the property, and a real investment highlight," Savills agent Leon Alaban said. 
“The beachfront location provides patrons, diners, and lodgers with a relaxed and picturesque view."
The complex features a public bar complete with nine electronic gaming machines (EGM's), a bistro bar and dining room plus alfresco dining space, a commercial kitchen, an additional gaming room with a further 26 EGMs, plus TAB and Keno. 
Hay Point Hotel Motel also has a drive through bottle shop on site.
The Hotel services the immediate catchment unopposed, being the only general licence venue for around 25 kilometres, according to Brent McCarthy.
 
</body></html>

jrobinson-rf4aSBido9

Hotel Motel at Mackay's Hay Point listed through Savills

<html><body>
A Primbee freehold property offered for sale last December is now under contract.
Savills Australia and WHK Commercial offered the prime freehold, vacant, single titled parcel of land on the highway in the coastal suburb of Primbee. 
Set within an established residential and commercial precinct, the 8,615 square metre site at <a href="https://www.realcommercial.com.au/property-land+development-nsw-primbee-502546514" target="_blank">Lot 1, Golf Place</a> adjoined the Port Kembla Golf Club.
It is 1.8 kilometres from Perkins Beach, Windang.
The site is relatively level, clear of any vegetation with town water services connected.
The surrounding area is predominately made up of residential, recreational and environmental use.
Under the Wollongong City Council, the property is zoned SP3 Tourist and is to be sold on a vacant possession basis.
Robert Lowe of Savills Australia and James Egan of WHK Commercial prevouslybindicated under the current zoning parameters, the property allows for and is not limited to, the construction of commercial shops, childcare centres, tourist and visitor accommodation (STCA)
There is a height limit of 9 metres and FSR of 1.5:1, subject to approval by Wollongong City Council.
Over recent years, the Illawarra region has witnessed significant growth across both the residential and commercial sectors with an increasing population expected to grow to 465,400 people approximately by 2031.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Freehold property in Primbee, Wollongong precinct sold

<html><body>
While technology continues to revolutionise supply chains outside the warehouse, it also has a huge potential to impact what happens inside the warehouse. According to Savills, we are already beginning to see robotics and connectivity changing processes and increasing efficiencies.
The International Federation of Robotics has stated that the supply of industrial robots will reach 400,000 units by the year end of 2018 and continue to grow by 15% per year. This means that the global supply of robots is increasing exponentially.
While the use of robotics in manufacturing processes is common across industry, mainstream use within the warehouse has not yet proliferated in Australia. Online retail giant Amazon has been identified as an operative leading the charge in this space, initially purchasing Kiva robotics in 2012. It has been estimated that there are now over 80,000 robots being used today in approximately 120 Amazon Fulfilment Centres across America.
Research from the DHL Innovation Centre foresees robots working in all aspects of the supply chain from national distribution facilities to mail sortation centres and local last mile delivery hubs. Key to their deployment will be decreases in investment as production efficiencies increase across the world.
The roll out of such technologies in Australia has been slow however Queensland can attest to a recent key example which is leading the way. 
In 2017, Pan Asian logistics specialist, LOGOS, developed an 18,762sq m purpose built high bay warehouse distribution and office facility for Asahi Beverages which included the provision of circa 9,000sq m of state of the art automated warehousing systems.
 <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/2018/5/8/robot2.jpg" alt="">
LOGOS’ Purpose Built Distribution Centre for Asahi Beverages
Asahi Beverages, one of the leading beverage companies in Australia and New Zealand, selected the LOGOS Heathwood Logistics Estate in Brisbane to locate their Queensland Warehousing Operations. The Estate is positioned directly along the Logan Motorway, being the main arterial and distribution precinct for Queensland, linking up with the Ipswich Motorway, Centenary Highway and the Gateway Motorway. 
The high bay area of the Asahi facility utilises an Automated Storage &amp; Retrieval System (ASRS) and Storage and Retrieval Machines (SRMs) operating within racking aisles to carry out, put-away and retrieval tasks of pallets from the racking. The low bay area facilitates forklift movements, selective pallet racking, case picking, drive-in pallet racking, pallet conveyors and automated stretch wrappers.
LOGOS Joint Managing Director, Trent Iliffe said that they were pleased to partner with Asahi Beverages to deliver the state-of-the-art facility. 
“We’re seeing a larger number of our customers across Australia and Asia moving to automated warehouse solutions and the Asahi Beverages facility has set the benchmark for the quality of facilities we can deliver,” he said.
Savills State Director of <a href="http://www.savills.com.au/services-and-sectors/industrial.aspx" target="_blank">Industrial and Business Services</a> for Queensland, Callum Stenson, said that with the beginning of these technology advancements hitting the market, 10 year old warehousing could see much higher redundancy in a shorter period of time.
Increased racking automation will create a need for taller warehouse units as occupiers utilise the volumetric cube more efficiently.
“With these new facilities now exceeding heights of 36 meters, buildings which were constructed in the early part of this century that are topping out at 7 meters will struggle to adapt to the supply chain requirements of modern warehousing,” Mr Stenson said.
All of this is made possible by the increased use of wireless data making the connectivity of a range of new devices possible. We will soon refer to this notion as The Internet of Things, which will see 50 billion previously idle devices all connected to the internet by 2020.
The extra connectivity to Internet of Things is likely to increase order picking and inventory density in a warehouse whilst reducing utility costs such as lighting and air-conditioning. 
“Warehouses will need to evolve to allow for data and artificial intelligence to integrate with stock supply demands,” Mr Stenson said.
The impacts of technology combined with changing consumer habits will in turn create a need to accelerate the roll out of robotic warehousing in Australia. Ever changing consumer habits and differing business models coupled with legacy supply chains, technology and penetration of online retail means that there is no ‘one size fits all’ model.  
The evolution of warehousing will continue to be based around design and location requirements, with innovation being the major driving force behind business productivity and profitability.
Savills is a leading global real estate service provider offering the full spectrum of services from strategic advice to managing assets and projects and transacting deals. Callum Stenson is Savills State Director - QLD, <a href="http://www.savills.com.au/services-and-sectors/industrial.aspx" target="_blank">Industrial &amp; Business Services</a>. To learn more about Savills, visit <a href="http://www.savills.com.au" target="_blank">savills.com.au</a>.
 
 
 
 
 
</body></html>

Robot warehousing, the warehouse evolution: Savills

<html><body>
The Singaporean developer and hospitality group Roxy-Pacific has sold an office building in Sydney’s CBD for $153 million.
In an aftermarket filing on Friday, Roxy-Pacific says the sale WAs subject to the findings of a due diligence exercise and the approval of both parties’ boards of directors.
Its 117 Clarence Street purchaser is an Australian-domiciled institutional investor whose name was not disclosed.
Roxy bought the 11-storey property at 117 Clarence Street from Altis Property Group in 2015 for US$81 million ($108.1 million) with the Tong Eng Group.
The building is 100% occupied with a net lettable area (NLA) of 12,517 sq m, and a weighted average leasehold expiry (WALE) by income of 2.6 years.
The impact of recent stock withdrawals for residential conversion had led to unprecedented demand for B Grade office space in the Sydney CBD, according to recent research from Savills Australia, who noted the subsequent spike in rents.
Savills noted Sydney’s Western Corridor was a precinct that is undergoing a "vast transformation" both commercially and culturally.
The precinct is fast becoming a regional centre for Asia Pacific’s financial services leaders as well as offering an array of small bars and fine dining options, it noted.
Positioned 120 metres from Wynyard Station and Bus Interchange, 117 Clarence occupies a large corner site of over approximately 1,231 sqm.
The building has undergone a series of capital upgrades including advancements in the lift rides and door mechanisms as well high quality end of trip facilities (bike racks, showers and change rooms).
The property was listed for sale through Simon Fenn, Ian Hetherington and Ben Azar of Savills Australia and Richard Butler, Josh Cullen and Steven Kearney of Inc RE.
About 60 per cent of leases within the building expire before 2020 and 41 per cent of income is underwritten by Government. The building has a 4.5-star NABERS Energy rating.
 
</body></html>

Roxy-Pacific sells Clarence Street, Sydney office block for $153 million

<html><body>
Two individual adjacent freestanding office buildings in South Brisbane have been sold as a package deal to a Brisbane-based organisation.  
The properties located on Peel Street were offered for sale through Gregory Woods and Robert Dunne of Savills.
Woods said the campaign attracted 81 enquiries from both developers and local businesses due to the near-city location and strong redevelopment prospects.
Buyers were being told more than $4 million would secure the acquisition.
Woods said the new owners beat four other bidders to secure the properties, and intend to refurbish and occupy one building, and lease out the adjoining property.
“The properties presented an attractive opportunity for owner occupiers, with the added opportunity to generate rental income from the second building," adding the new owner can do this while maintaining a medium term redevelopment play with the Principle Centre zoning providing a 10 storey height limit
The properties total a combined site area of 910sq m, with each property covering 455sq m and offering a net lettable area of 360sq m and 313sq m respectively.
 
 
</body></html>

Savills secure two-in-one South Brisbane deal

<html><body>
A Morningside freehold warehouse located in the southern TradeCoast has been picked up by an owner occupier for $3,500,000. 
Savills agent Shaw Harrison was initially appointed to lease the property located at <a href="https://www.realcommercial.com.au/property-industrial+warehouse-qld-morningside-502520610" target="_blank">345 Thynne Road</a> as the previous owner occupiers had decided it was surplus to their needs. 
“Market activity at the moment is particularly thick with buyer interest and whilst we were initially promoting the property for lease, we received multiple offers to purchase the property at the same time,” Harrison said.
The property last sold for $2,530,000 in 2014 representing a 40 percent growth on the recent sale
Harrison said that the buyer who was in the warehousing &amp; logistics industry was spilling over in their existing warehouse around the corner.
“We actually had five other registered buyers that were disappointed when they missed out, as it wasn’t on the market long,” he said.
“I think users were attracted to the low site cover and usually properties with cranes or heavy rated power are popular because they are hard to find."
The 4,991 sqm site includes a corporate freestanding building of 1,810sqm which includes a renovated office over two levels and a warehouse fitted with a 5 tonne gantry crane and 12 metre wide sliding doors. 
“Engineering &amp; Logistics companies generally search hard for premises such as this as they are looking for buildings that can do the heavy lifting and high power supply as retrofitting is often expensive.
In a flurry of industrial deals settling from the start of the year, this is the fifth sale concluded to owner occupiers and with all properties having received multiple offers. 
The area is set to transform with proposed future mixed use developments of the old Forgacs Facility and Bulimba Army Barracks.
“We are still witnessing an enormous amount of cash in the market and conditions for owner occupiers are at an all-time high, but with the limited stock at present, exceptional capital growth for sellers is becoming more easily achievable
 
</body></html>

jonathanchancellor-7SQnKwU6yx

Savills sell Morningside warehouse for $3.5 million

<html><body>
Office market sales recorded the second highest cumulative total in the last decade in the March quarter, according to <a href="http://pdf.savills.asia/asia-pacific-research/australian-research/australia-office-/savillsresearch-quarter-times-office-q1-18.pdf?utm_source=ExactTarget&amp;utm_medium=Email&amp;utm_term=4817549&amp;utm_content=6427608&amp;utm_campaign=A2MK+-+Savills+Research+Quarter+Time+Office+Q1-2018" target="_blank">Savills Quarter Time National Office Report.</a>
The total sales of over $17.5 billion was only bettered in 2016 when total sales hovered just below $19 billion.
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/18/sales2.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/18/sales2.jpg" alt="">
The majority of sales were conducted by foreign investors. 
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/18/investorpurch.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/18/investorpurch.jpg" alt="">
The highest sale came last month when Lendlease sold Two Melbourne Quarter for $550 million.
It toppled the previous high of $400 million which was set late last year when the yet to be completed 405 Bourke Street in Melbourne sold.
NAB secured its anchor tenancy.
Queensland secured the next two most expensive sales, while New South Wales could only muster one sale over $200 million. That was when 1 York Street in the Sydney CBD sold.
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/18/total%20sales.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/18/total%20sales.jpg" alt="">
</body></html>

Big money Melbourne deals push office sales to near 10 year March quarter high: Savills

<html><body>
The former home of Trans Australia Airlines, and more recently Qantas, has sold to an offshore buyer for $90.15million.
The property at at <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-502622354" target="_blank">50 Franklin Street in Melbourne</a> sold with a new long-term lease in place to the Victorian government.
The deal comes just more than a year after Singapore-based property developer Lian Beng picked up the 18-level office tower in the heart of the city’s education precinct for $51.5million, and six months after the state government signed a 10-year lease to occupy the entire building.
It was sold by a band of 12 private investors and was sold by vacant possession after the departure of Salmat.
Savills Australia’s Ben Parkinson, Paul Craig and Ben Azar managed the international expressions-of-interest campaign in conjunction with Colliers International’s Trent Hobart.
Parkinson said the buyer recognised the potential of the property’s solid passive income stream, which spiked 116 enquiries and ultimately 14 offers, six domestic and eight offshore, from a combination of private and listed groups.
“The Victorian state government has signed on for 10 years, with various departments to occupy the space and undertake a multi-million-dollar major building upgrade during the tenancy,” he said.
“There’s a focus on increasing the NABERS Energy rating from 1.5 stars to three-plus stars.”
Ben Azar said the property’s ultimate income security under the strong AAA-rated government lease covenant was the deciding factor in the deal.
“This is an extraordinarily rare opportunity to acquire a whole building occupied by a government tenant,” he said.
<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/2018/4/11/qantas.jpg" alt="">
“50 Franklin Street is one of only two buildings with a net lettable area under 20,000 sqm, 100 per cent occupied by a government tenant in the Melbourne CBD.”
Paul Craig said the Melbourne CBD continued to be a core Asia Pacific investment destination and Australia’s most diversified office market.
“The forecast office supply from 2017 to 2026 is indicating only half the stock of the previous decade will come to market against a backdrop of sustained high demand,” he said
“This is anticipated to translate to effective rent growth and the ongoing generation of Melbourne’s sought-after high-return profile.”
Mr Parkinson said the buyer planned to capitalise on the tower’s future development upside, with hotel, studentand residential accommodation among the possible opportunities.
“The flexible floorplate configuration allows for easy conversion,” he said.
“With the prominent total site area of 2,213 sqm, there is potential to increase the building area to 40,000 sqm, subject to council approval.”
50 Franklin Street is in one of the Melbourne CBD’s most rapidly evolving precincts, with major state government and City of Melbourne infrastructure works being undertaken in the immediate vicinity, including the $10.9billion Metro Rail Project and the revitalisation of the Queen Victoria Market.
“Anticipated to become one of the most densely populated precincts in the world, this will be the epicentre for office and education use,” Azar said.
“During this time of growing demand in the international education sector and falling yields for commercial offices, we expect significant domestic an off-shore enquiry for this asset.”
Extensively refurbished about eight years ago, the building includes four passenger lifts, 36 basement car parks, an entrance lobby and flexible ground-floor commercial space.
</body></html>

Former Trans Australia Airlines house flies for $90.15 million

<html><body>
According to Savills Director of <a href="http://www.savills.com.au/services-and-sectors/student-accommodation.aspx" target="_blank">Student Accommodation</a>, Conal Newland, the Australian student accommodation market is transitioning, on the back of a significant increase in the development of purpose-built student accommodation (PBSA) across Australia’s capital cities.  This wave of new accommodation is now reaching completion, with a significant increase in the supply of PBSA throughout the next two years.  In New Zealand, the demand for more institutional PBSA appears relatively strong, but the feasibility of delivering new accommodation is challenging given rental prices which are low but have been increasing and current build costs which are relatively high.
Private sector vs university
The sector is entering a new phase, where there will be more beds owned and operated by the private sector than universities.  The last Australia-wide survey of student accommodation carried out by University Colleges Australia (UCA), in association with (at the time) ACCUHO, as at November 2004, indicated that there were 74,482 beds provided across the country.  Of that, 44,260 places (representing 59 percent) were provided by universities and colleges or located on-campus.  The remaining 30,222 (41 percent) were provided by commercial entities, churches and charitable trusts. 
A number of the private sector consortia that have been active in the Australian student accommodation market must now move from primarily a development phase, into a focus on operations.  Initially, this will be to attract students and stabilise new properties’ occupancy levels.  This change in business mode, to deliver strong asset performance returns, has been coined by certain market participants as the challenge to “put the rubber on the road”.  Operational performance driven by good management is key area of interest for market observers moving into 2018.
Focusing on the main capital cities, Savills 2017 research indicates that 38,960 beds were provided by commercial operators.  In addition, Savills research indicates that 7,793 bedrooms will be delivered in 2018.  From the start of semester two 2018, commercial providers will be operating a total of 46,753 bedrooms across Australia.  This rapid increase in the supply of accommodation is undoubtedly going to cause some challenges and opportunities for operators.  New players entering the market looking to establish brands and stabilise assets, with existing operators protecting market share as new competition arrives. 
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/10/savills3.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/10/savills3.jpg" alt="">
A deeper look into each market
In Sydney, a total of 1,034 bedrooms are due for completion in 2018.  Overall, the PBSA development pipeline remains relatively restricted in Sydney, due to continuing buoyancy in the value of development sites – primarily driven by residential developers in the key locations for student accommodation.  The University of Sydney (and its associated colleges) is also active, with a number of new projects underway.  The uptake for off-campus accommodation in 2018 has been strong, with most high-quality assets now at or near capacity.  
The Melbourne market has also had a robust start to 2018, with strong demand for bed spaces.  Savills research indicates that 1,709 new beds of accommodation are due for completion in 2018.  We see continuing strong demand for this new accommodation, particularly at the lower rental price points.  
Brisbane has a significant amount of new accommodation due for completion in 2018.  Our research indicates that 3,922 bedrooms will be completed.  This represents a 44 percent increase on top of the existing provision of commercial accommodation (8,870 bedrooms).  There is also some indications of lower than expected demand for accommodation priced towards the top of the market, with rental discounts being offered to students, and self-contained studios being reprovisioned to twin rooms with the inclusion of bunk beds.  The new delivery of accommodation at Southbank is creating a student hub, with focused activity and vibrancy in that location.  Continuing opportunities to delivery new accommodation at lower end of the market price point.
Adelaide has also been active, with Savills research indicating that 1,128 bedrooms will be delivered in 2018.  This is off a relatively low base of commercial provision of 3,047 beds.  Demand has been steady for the new well located  accommodation that has recently been completed.
In Perth several new projects have been promoted in the last 12 months and construction is underway on Global Student Accommodation’s (GSA) first scheme in Northbridge which is anticipated to open in 2019.
In New Zealand there has been very limited delivery of new off-campus PBSA in the last two years as build costs have risen to levels that impacts on the financial feasibility of projects.  Levels of demand appear relatively robust in the main cities of Auckland, Wellington and Christchurch.  The residential rental markets are currently relatively tight with limited vacancies and there has recently been several news articles on rising rental levels.  
Future outlook for student housing
Looking forward to 2019, the pipeline supply for Melbourne and Brisbane remains strong, and Savills will be closely monitoring the uptake of new PBSA within both of these markets.  There appears to be continued excess demand for good quality PBSA in Sydney, with developers and investors focussing hard on new opportunities – Savills predicts that non-CBD locations may become increasingly prevalent for new off-campus residences.
While supply has been increasing across most of the main markets, it is important to note that the existing provision of institutional-quality PBSA in Australia is coming from a historically extremely low base, with supply levels very low by international standards.  The delivery of this new wave of accommodation is benefiting students by giving them access to modern facilities, well located in respect of their place of studies, together with enhanced levels of amenities.  The delivery of new high-quality PBSA has also been identified as a key enabler of the continued performance of Australian universities within the global Higher Education market. 
On campus, there have been several new projects in the past 12 months.  The University of Melbourne entered into an agreement with Lendlease as the master developer and Urbanest as the student accommodation developer for approximately 450 beds of new accommodation within the Carlton Connect mixed-use development.  The University of Tasmania completed an outsourcing of its student accommodation portfolio in Q3 2017.  More recently, James Cook University is delivering approximately 500 new beds of accommodation at its Cairns Campus for the start of 2018.  
Savills is seeing an increasing amount of activity involving universities taking a more commercial focus towards the operation of and investment into the provision of on-campus student accommodation.  Through this process, there will be more opportunity for collaboration between the universities and the experienced student accommodation providers. 
There are also a number of proposed developments in smaller cities and regional areas, as universities in these localities identify the need for provision of quality PBSA to support the wider objectives of the university.  The feasibility of these new regional projects are typically more challenging without the strong back-up of a direct let alternative, so universities are often required to underwrite a certain level of occupancy or revenue.  It is expected that this is a trend which is set to grow in the short to medium terms. 
International students in Australia
From a demand perspective, the latest available student demographic information from the Department of Education and Training (February 2018) indicates that international students studying in Australia increased from 253,757 in 2015 to 278,718 in 2016 representing an annual increase of 9.8 percent.  This has been on the back of strong double-digit growth throughout the past two years.
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/10/savills2.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/10/savills2.jpg" alt="">
The Australian international student market is continuing to be dominated by a large number of students from Southeast Asian countries, with China and India continuing to be the strongest countries of origin. 
As of the start of March 2018, the new 457 Visa regulations have come into force.  There have already been some indications that these visa changes will have material impacts on the Australian University sector.  In the past, certain levels of international students have been attracted to Australia on the basis that they could convert student visas into longer-term visas with the ability to work and remain in Australia.  It is expected that the impact of these visa changes will be reflected in student enrolments in 2019. 
Student accommodation in catch up mode
In summary, Savills sees the Australian student accommodation market in a “catch-up” mode coming from a historically low supply of University and College accommodation, which was primarily on-campus and with a significant amount of catered offerings.  There is a new wave of institutional development – particularly focused off campus – with a large amount of new PBSA being delivered across Australia’s capital cities in 2018 and 2019.  
While Savills considers that there may be some locations with reasonably limited short-term performance rental increases and occupancy levels, the company does not consider that at this stage any of the major Australian markets are reaching a supply saturation point.  There are still numerous opportunities in most markets to meet the growing levels and expectations of student demand.  The critical success factors for the successful delivery of new accommodation will - from a real estate perspective - focus on factors such as the location of the property and a tenancy mix (with corresponding rental price points) to meet the local market.  Competent management will be essential to ensure operational success and will be more important than ever moving forward and supply increases in many Australian markets.
In New Zealand the supply of new PBSA will remain restricted until build costs, or land values in the main cities ease.
Savills is a leading global real estate service provider offering the full spectrum of services from strategic advice to managing assets and projects and transacting deals. Conal Newland is Director of <a href="http://www.savills.com.au/services-and-sectors/student-accommodation.aspx" target="_blank">Student Accommodation</a>. To learn more about Savills, visit <a href="http://www.savills.com.au" target="_blank">savills.com.au</a>.
</body></html>

Student accommodation: Now it’s time to put the rubber on the road

<html><body>
Savills Australia is welcoming a new director to help lead the Victorian business’ capital transactions division. 
With 13 years’ experience in commercial property agency and valuations, James Girvan returns to Savills with $3 billion worth of commercial property transactions under his belt. 
Girvan has relocated from Sydney to Melbourne to fill the role.
Some of the notable transactions that Garvin has been involved in include 231 Elizabeth Street for circa $350 million, 20 Hunter Street for circa $200 million, and 55 Clarence Street for $170 million.
<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/2018/3/28/girvan.jpg" alt="">
He aims to set about “finding a home” for the capital that had not been able to break into the Sydney CBD market. 
“Many local and offshore groups that have missed out on core Sydney CBD opportunities are now turning their attention to core Melbourne stock,” he said. 
“As the development pipeline comes to fruition in the next two years, and with the current low vacancy and potential for rental growth, Melbourne will become a pivotal point of interest for investors.”
The move follows the appointment of Ben Parkinson as state director of Capital Transactions in October 2017, and the successful sales of 50 Franklin Street and 800 Collins Street late last year. 
Parkinson said several local institutions were looking to re-weight their portfolios, with the Melbourne market providing tenant diversity given the even distribution across tenant sectors.  
“There has been massive net absorption throughout the past few years and Docklands, among other precincts, is at capacity. 
“Although the recent change in the city’s planning laws limits the availability of new sites, the population growth is creating pent-up demand for office space, with prime rents expected to increase by about 7.0% in the short to medium term.” 
</body></html>

Savills

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Savills

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News