The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

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>

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.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Savills

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Savills Australia has announced a new Asia Markets team that will be based in its Sydney Head Office.
Jordan Lee and Andy Hu will lead the team as Joint State Directors.
Lee joins after eight years at Colliers International working across the Asia markets/investment services.
“The synergy between Andy and I has been positive from the first day we met, despite being at competing agencies, which is why we both knew we would work well together. We are excited to join the Savills brand,” Lee said.
“Savills was independently ranked No. 1 throughout Asia Pacific for office transactions in 2018 with a 24% market share, while Savills Hong Kong has transacted in excess of 74% of all office transactions in 2018 and is clearly the dominate provider in the region.”
Hu joins after six years at Knight Frank working across Asia markets and commercial sales.
“This is an exciting venture for us both and we look forward to working closely with the Capital Transactions, Metro Sales and Residential Site Sales divisions as we close the gap between Asian buyers and the Australian market,” Hu said.
Kelly Li will also be joining as an Executive Assistant. 
According to Real Capital Analytics, Savills concluded five of the top 10 office building disposals across Asia Pacific in 2018, with the other half being direct transactions, according to Paul Craig, CEO, Savills Australia and New Zealand.
“These transactions highlight our unparalleled access to capital across the region, providing maximum exposure for our clients who have continued high levels of equity in the market,” Craig said.
“Savills is well and truly embedded within the Asia Pacific region, our major strength being that we have rooted local teams who have long standing relationships with investors and intermediaries giving us unrivalled access to private capital that no other agency can match.
“The appointment of Jordan and Andy is the next step in further strengthening our offering, as our clients receive focus from every single region.
“We pride ourselves on our ability to reach far corners of the globe that many of our competitors cannot.”
Photo (L to R): Jordan Lee, Kelly Li, Andy Hu
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jonathanchancellor-7SQnKwU6yx

Savills start up Asia Markets team based in Sydney 

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SPONSORED POST
The Melbourne CBD recorded the greatest yield compression throughout the past three years across CBD office markets globally, as reported by Savills latest Impacts report. 
In Impacts, Savills global thought-leadership programme, Savills explores the link between office yields and borrowing, and concludes that the relationship has become more tenuous as investors’ profiles have changed and fewer investments have been predicated on finance from bank borrowing. 
According to Savills, a rise in interest rates in any domain (which is looking increasingly improbable) is unlikely to result in a corresponding rise in prime office yields so they are likely to remain stable or continue to fall in many markets. 
Looking at the level of yield compression across key CBD markets globally, Melbourne led the charge, with prime yields falling 174 basis point since 2015, followed by Beijing (-132 basis points) and Berlin (-120 basis points). 
Savills Australia’s CEO, Paul Craig, said that while Australian cities were still off the 3.0 percent mark hit by other CBD markets worldwide, “It would be prudent to assume that yields Down Under will fall in a similar trend in the next five years”. 
“This is even more so the case given the Melbourne CBD’s status as a regional gateway city and the Sydney CBD’s status as a global gateway city,” he said.
CBD prime office market yields are now sub-3.0 percent in Hong Kong (2.43 percent), Frankfurt (2.9 percent), Tokyo (2.9 percent) and Berlin (2.9 percent), in a reflection of the new benchmarks being set globally. Savills report forecasts that the Paris (3.0 percent) and Amsterdam (3.5 percent) prime CBD office markets could see market yields harden to under 3.0 percent by the end of 2019.
“Throughout the past three years, we have seen growing investor demand from both foreign and domestic investors drive yields down to record low levels,” Savills Australia’s Director for <a href="https://www.savills.com.au/services-and-sectors/sales-and-investment/capital-transactions.aspx" target="_blank">Capital Transactions</a> in Victoria, James Girvan, said.
“Investors are drawn to the Victorian capital, not only because of strong demand drivers and nation-leading economic indicators.
“The risk-adjusted return for Melbourne CBD remains among the highest recorded across all office markets globally (according to latest available data from the MSCI IPD).”
Positively, as a result of record low interest rates, and thus record low long-term bond yields, the yield premium throughout the 10-year bond rate remained elevated at 305 basis points, according to Savills data in March 2019.
“We are seeing more and more investors, both domestically and internationally, recognise the investment potential in Australia, which will likely drive yields further down, particularly with interest rates likely to remain low in the short to medium term,” Savills Australia’s Director for <a href="https://www.savills.com.au/research/australian-research.aspx" target="_blank">Research &amp; Consultancy</a>, Shrabastee Mallik, said.
“We are not only seeing our peers abandoning tightening monetary policies globally, but domestically, there is also a growing consensus that the RBA will likely bring the cash rate down further this year. 
“We are seeing swap markets pricing interest-rate cuts for the remainder of 2019, which will add more downward pressure on 10-year bond rates, keeping the yield premium elevated and in favour of commercial property.
“Based on global data, yields in Australia remain elevated, compared to comparable investment destinations, providing the impetus for foreign investors to invest in Australian office markets. 
“In the past six months, we have seen increasing foreign investor activity in recovering markets like Perth and Brisbane, as they look to capitalise on relatively higher yields.”
Savills Australia’s Director for <a href="https://www.savills.com.au/services-and-sectors/sales-and-investment/capital-transactions.aspx" target="_blank">Capital Transactions</a> in Western Australia, Nick Charlton, said the prime yield differential between Sydney and Perth was at historical highs, with an approximate 170-basis-point spread encouraging international investors to look more closely at counter-cyclical investment opportunities in the Perth CBD office market.
“Investors are confident the spreads are too wide and set to narrow in the short to medium term,” he said.
“Interest in the CBD office market has been further heightened by the prospect of net effective rental growth in prime office buildings forecast to be at 9.0 per cent per annum between now and 2021, with the lack of new stock and tightening vacancy rates, which are now at sub-5.0 percent.”
Mr Charlton went on to say that Perth was “a distinctly two-tiered market”, with the premium and upper A-grade segment behaving very differently to the lower-quality A and B Grade stock, which were seeing persistently high vacancy rates. 
“Investors see this is where the opportunity lies, finding functional, well-designed and well-located buildings that can be re-purposed to capitalise on the lack of new supply and the forecast net effective rental growth,” he said.
Click here <a href="https://www.propertyobserver.com.au/images/2019/5/1/Savills-yields.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/2019/5/1/Savills-yields.jpg" alt="">
Mat Oakley, Head of Commercial Research for UK and Europe at Savills, says: “While the link between real estate yields and base rates has become less strong, it is by no means broken. Investors who look across a multitude of asset classes, particularly those searching for long-term secure income, will reach a point where the yield on sovereign bonds becomes attractive enough to prompt them to choose them above real estate. For the foreseeable future, however, prime offices in the world’s global cities will remain attractive, with competition fierce for the best assets.”
Simon Smith, Head of Asia Research at Savills, comments: “With the threat of a US-China trade war easing and the Fed signalling that it is unlikely to raise rates at the time of writing, we have seen a resurgence in demand for prime offices in Asia-Pac after activity weakened in the latter half of 2018. 2019 is therefore unlikely to see any movement outwards in yields.” 
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. To learn more about Savills, visit <a href="http://www.savills.com.au/" target="_blank">savills.com.au</a>.
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jrobinson-rf4aSBido9

Melbourne leads CBD markets globally in yield compressions for past three years: Savills

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Purpose built student accomodation (PBSA) is being driven by the influx in international students, according to Savills Australia Student Accomodation Q1 2019 Report.
International students increased by 94,630 over the past five years.
There were 10,850 new PBSA beds enter the market in time for the 2019 academic year. Nationally there are now over 87,000 purpose built student accomodation beds.
Savills pipeline predicts there will be around 115,000 beds by 2020. 46% of the future pipeline is through Melbourne. Victoria's <a href="/expert-insights/investing/population-gap-to-narrow-between-nsw-and-victoria">general population is set to close</a> on New South Wales by 2022.
<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/2019/4/16/Bed-Supply.jpg" alt="">
By 2022, the full-time international student to all bed ratio is projected to measure 3.75, significantly higher than more mature global markets such as the UK.
Compound annual growth in full time students across Australia’s Greater Capital Cities recorded 4.3% over the past five years, and 4.5% over the 10 year period. 
The growth in full-time students has been driven predominantly in Sydney, Melbourne, Darwin and Canberra.
Click here to enlarge.
<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/2019/4/16/Student-Growth.jpg" alt="">
Paul Savitz, the director of student accomodation at Savills Australia said the expansion of the student accomodation sector is playing catch-up in order to support demographic changes
Savitz, who wrote the Australian Student Accomodation Q1 Report, added that by the start of the first semester of 2019 there were 87,052 PBSA beds varying by quality, price, location and amenity across the eight capitals.
“Our projections show there could be 114,755 operational beds by the end of 2022, a 32% uplift to today’s number," Savitz said.
"Peak delivery will be 2021 when an estimated 11,800 beds will enter the market, 57% to be completed across the Melbourne market.
Conal Newland, director of student accommodation at Savills Australia, said international student growth has been even stronger, recording a compound annual growth rate of 7.1% since 2012, and 5.7% over 10 years. 
“Between 2012 and 2017, Australia’s full time international student presence grew by 41%.," Newland said.
"With Melbourne and Sydney the premier destination for international students, growth has been significant across these two capital cities recording an annual increase of 8.7% (Melbourne) and 11.3% (Sydney) over the past five years” he said.
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International students continue to flock to Australia: Savills Student Accomodation Q1 2019 Report

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National bike giant 99 Bikes has spent $5.5 million buying two adjoining properties in Brisbane's Bowen Hills.
They're set to consolidate two existing stores in to the one property at 62-66 Abbotsford Road. 
Savills agents Gregory Woods and Daniel Pepper negotiated the deal, with 111 enquiries received throughout the campaign.
The new superstore is in replacement of the previous stores located in Fortitude Valley and Windsor, and will also house administration, logistics and warehousing needs for the business. 
Woods said the building size and location was ideal for the retailer, with the high level of exposure a major draw card. 
“We had originally taken the property next door to market, with 99 Bikes inspecting the facility, however they expressed a need for a larger space.  
“Fortunately, the seller also owned some adjoining properties which is what prompted the sale of 62-66 Abbotsford off- market,” Mr Woods said. 
The properties are situated on a total 2,028sq m site, achieving a rate of $3,309 per square meter by total building area of 1,662sq m. 
Pepper said owner occupiers continue to be attracted to Bowen Hills, due to its underlying land value and future development potential.  
“Evidenced by the significant enquiry we received throughout the campaign, we are seeing an increased interest in Bowen Hills due to the significant price disparity between neighbouring suburbs such as Newstead,” Mr Pepper said. 
Managing Director of 99 Bikes, Matt Turner, said the new store is set to open on Thursday 20 June 2019, with the online warehouse up and running from the new location now. 
“When the store opens there will be an extended range with express click and collect from the online store,” Mr Turner said. 
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Savills sell two Bowen Hills, Brisbane properties to 99 Bikes

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 Australia’s retail sector has been in a state of flux throughout the past three years, as the effects of online, large-format and specialist retailing have grown more pronounced, according to Savills.
Savills Australia has released its latest research report, the Q1 2019 National Retail Quarter Time, highlighting the vastly different outcomes across states and sub-sectors.
According to the report, in the 12 months to March 2019, investment volumes for retail assets nationally were at their highest level on record.
Ben Parkinson, Savills head for retail investments, said in the 12-month period to March 2019 there was a record $2.83billion of retail assets transacted – more than double that of the previous annual period.
“Of this total, 60 per cent were transacted by domestic institutional investors, while domestic private investors accounted for 23 per cent. 
“In stark contrast, foreign investor activity in Victoria has been muted throughout the past two years, after foreigners transacted nearly 63 per cent of total retail sales volumes in the 12-month period to March 2017.”
Most of this transactional activity occurred across regional (34.4 per cent) and sub-regional centres (30.3 per cent), followed by the more tightly held neighbourhood centres (15.3 per cent).
“Neighbourhood centres in Victoria are not traded as often as in other states, mainly due to the fact these centres are generally privately held, often by families, over a long period of time,” Silberman said.
“However, the strong metrics on neighbourhood centres mean that they are in high demand, and when they are put up for sale, the competition to acquire them is quite fierce. 
“Not surprisingly, average capital values across Victoria’s neighbourhood centres recorded gains in the 12-month period to March 2019, rising 5.0 per cent.”
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Indicating that neighbourhood centres were still performing well, the report shows that specialty tenant rents recorded growth in the March quarter, rising 8.3 per cent in the 12-month period to March 2019.
Specialty tenant rents across regional and sub-regional centres fell in the same period.
“As people become busier, there is a greater demand for neighbourhood centres to be a one-stop shop, with more and more local neighbourhood centres providing a streamlined non-discretionary experience,” Parkinson said.
“Landlords are able to carefully target their rents in these centres in line with changing consumer tastes and preferences. 
“There is a greater demand for quality food products, with an increasing number of consumers demanding fresh produce like fruits and vegetable, meats and bread from specialty retailers, rather than from the supermarkets.”
Shrabastee Mallik, Savills director of research and consultancy, said she's not surprised of the resilience of the retail sector.
“Given the vastness of Australia’s physical landscape, a relatively low shopping centre supply per person, and a lower penchant for exclusively shopping online compared to other developed nations, it is not surprising that Australia’s retail sector has been comparatively resilient,” Malik said.
The report reveals that movements in rents varied considerably across the different centre and tenant types in Victoria.
Mallik said there were notable revisions to recorded rents across regional, sub-regional and neighbourhood centres. 
“While supermarket rents across all centre types remained stable, we saw rents move down for discount department stores in sub-regional centres to an average of $235 per square metre, reflecting a 3.9 per cent fall during the 12-month period to March 2019,” she said.
“Interestingly, the average went down as a result of downward revisions to the high end of the range, rather than the low, in a reflection of the times.
“We are now at a stage of the cycle where landlords are carefully considering the levels at which they pitch their rents. 
“With many of these discount department stores coming under increasing scrutiny about their low prices coming at the cost of ethics and sustainability, we are probably going to see more of these retailers negotiate their leases in their favour, as the pendulum remains firmly in favour of tenants.”
Mallik said Savills maintained a positive outlook for the future of Victoria’s retail sector.
“Not only has total retail turnover growth been above long-term averages, growth across discretionary retailing such as ‘clothing and footwear’ and ‘hardware and garden’ has been notably above long-term averages, in an encouraging sign for discretionary retailers.”
Rick Silberman, Savills director for retail investments, said that retail centres across Victoria had the highest total returns nationally, recording an annual return of 7.7 per cent in the 2018 calendar year. 
“As this compares favorably to the long-term average, it is clear that investor demand for Victorian retail assets remains strong, particularly given that retail trade has been performing well above long-term averages throughout the past five years, in spite of the rise of the online retail sector,” he said.
According to the Savills report, in the 12 months to March 2019, investment volumes for retail assets nationally were at their highest level on record.
To read the full report, <a href="http://pdf.savills.asia/asia-pacific-research/australian-research/australia-retail/savillsresearch-quarter-times-retail-q1-2019.pdf" target="_blank">click here</a>.
 
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Savills cite specialist stores as rental drivers in Victoria neighbourhood shopping centres

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SPONSORED POST
With new technology solutions changing the landscape in which real estate operates, Savills Australia has revolutionised their property offerings by entering into a proptech alliance with Queensland-based SA1 Property. 
In a move to command greater market share in the industrial and occupier services sectors, SA1 Property has enabled Savills Industrial business to tap into geospatial tools and analytics in order to assist clients in making informed property decisions.
Savills Australia is the only property agency with access to the recently developed NodeMaster site selection, and the newly developed SA1 Pro information platform, entering into a national agreement which will extend over the next four years.
Savills Australia’s National Head of <a href="http://www.savills.com.au/services-and-sectors/industrial.aspx" target="_blank">Industrial and Business Services</a>, Michael Fenton, said the union with SA1 Property has enabled Savills to provide clients with unique insight when making location decisions. 
“By coupling location intelligence with a comprehensive understanding of the property market, this alliance has enabled us to provide our clients with the power to optimise their business position using data which could result in millions of dollars of savings for industrial occupier’s overtime and de-risk the investment thesis for investors and developers in transactions,” Mr Fenton said.
Senior property industry executives, Aaron Bates, a former director of the CBRE and JLL industrial businesses in Queensland, and locational intelligence director Stephen Clark, who has 15 years’ experience applying geospatial technologies to military, mining, infrastructure and property situations, founded the firm last year after they observed a need for better metrics in the proptech market.
“We wanted to develop a platform to help investors and developers identify greater investment value as well as assist occupiers in optimising their supply chain networks using locational intelligence.
“From working alongside Savills, we now have full coverage of the Eastern Seaboard core markets, with Adelaide and Perth to follow shortly,” Mr Bates said.
The NodeMaster technology has allowed Savills to work with occupiers to determine the most efficient property for their specific use across every major industrial market. The technology works to harness real time traffic modelling to simulate movements across every road network at any time of the day. 
Moreover, Savills can simulate their clients’ freight tasks across thousands of points in each city, to determine the most efficient location. They can model their inbound and outbound freight movements using B-double routes to determine the optimum centroid for clients while also measuring the impact each potential location may have on existing staff. 
Real time data can be shared with key decision makes in a digital story map format at any one time, reducing the time required to analyse operations, relate it to the total marketplace and filter large datasets to identify every possible suitable property.
Additionally, Savills is utilising the SA1 Pro platform for property data and analytics, which captures the height, roof area and site coverage of every industrial property across Australia along with live data on land and building availability. 
“We’ve centralised and added value to a massive amount of property and market data, and provided Savills operators with an ability to analyse localised markets with a level of speed and efficiency not previously possible,” Mr Clark said.
The National Industrial &amp; Business Services Team have integrated the platform into their everyday business communications. A recent example of the software at work, has been on a recent land-rich investment transaction at Zillmere which was driven by land availability projections.
The off market transaction for 38 Pineapple Street was brokered by Savills Industrial &amp; Business Services Director, Callum Stenson for $8.751 million on behalf of private investor.
According to Mr Stenson, the Sydney based purchaser was a first time investor into the Brisbane Industrial market. 
“The technology enabled us to demonstrate a tightening of available land in the immediate Northern Brisbane industrial region over the coming years, which highlighted value in the opportunity.
“The real time insights provided our client with the ability to look outside the normal search parameters and the confidence to make a better investment decision,” Mr Stenson said.
SA1 Property is currently investigating how their proptech solutions can be expanded  to provide further insights for additional markets and industry types to further assist Savills clientele in the near future. 
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. Michael Fenton is National Head of Industrial and Business Services. To learn more about Savills, visit <a href="http://www.savills.com.au/" target="_blank">savills.com.au</a>.
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Proptech alliance launches Savills to the forefront of cutting edge insights

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Savills Australia is celebrating recruitment success, after enlisting 12 staff members from JLL’s Sydney and Melbourne industrial businesses in the past four months.
Savills Australia &amp; New Zealand CEO, Paul Craig, said the company was “aggressively growing several core divisions”, with the Industrial &amp; Business Services and Office Leasing product lines leading the charge.
"We have welcomed more than 300 new staff members in the past 12 months, with 66 of those starting in the past six weeks." 
“Of the new hires, 15 are returning employees, highlighting the attraction of Savills collaborative workplace culture and our ongoing commitment to developing our people," he concluded.
The agency’s Industrial &amp; Business Services division is set to expand with the appointment of 12 industrial team members from JLL, including directors Michael Wall, Nick Crothers, Brad Esler, Scott Nienhuis, Jeremy Cooper and Edward Washer.
National head of Industrial &amp; Business Services, Michael Fenton, who also joined Savills from JLL last year, said the recruitment was consistent with the business’ national growth strategy to take Savills to the top ranking in the Australian industrial market.
Savills have also opened a new South Sydney Office (pictured).
The news follows Savills announcement of an alliance with Queensland-based proptech start-up company, SA1 Property, in late 2018.
Mr Fenton said the union had been allowing Savills to provide its clients with "unique information for location decisions," which were likely to result in “millions of dollars in savings for industrial occupiers and de-risk the investment thesis for investors and developers in transactions”.
“This is an exciting point of difference for Savills and is generating business for our industrial agency and tenant representation product lines,” he said.
 
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Savills Australia welcomes over 300 new staff members in the past year

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SPONSORED POST
Savills Australia’s efforts to blaze a trail in support of the growing number of women pursuing careers in the commercial property industry, a traditionally male-dominated environment, will be highlighted on International Women’s Day.
The market-leading company has made significant progress through its Equality &amp; Diversity policy program, with 31 women commencing employment since the start of the year, which will be celebrated at networking events in its offices across the Australia and New Zealand on Friday.
This year’s theme for International Women’s Day is “Balance For Better” – better the balance, better the world. Everyone has a role to play – all the time, everywhere. 
“Savills is committed to shining a light on the importance of gender parity and working together to build a gender-balanced world,” Savills Australia &amp; New Zealand CEO, Paul Craig, said.
Several senior female appointments have been made at Savills Australia in the past year, including Adele Eagleton as NSW State Director of Project Management, Sarah Hendry as VIC State Director of Asset Management, Shrabastee Mallik as National Director of Research &amp; Consultancy, and Edwina Mathews as National Director of Marketing &amp; Communications.
Mr Craig continues his involvement in the Property Council of Australia’s (PCA) Male Champions of Change initiative and sits on the recently formed Build An Inclusive Industry action group, working alongside other professionals in the industry to drive change and improve gender diversity at senior levels.
“We embrace an environment where our people feel empowered to share their perspectives with confidence they will be heard,” he said. 
“We are striving to create a workforce that is representative of the entire community and broadens our understanding.”
Some of the ways Savills is upending gender stereotypes in the commercial property industry include waiving the three-month waiting period on its return-to-work bonus scheme for parents returning from parental leave; offering five paid days for non-primary carers following the birth of a child; and increasing promotions of female managers from 18.2 percent to 38.1 percent in the 2017/2018 Workplace Gender Equality Agency reporting period.
“Savills actively endorses several initiatives supporting gender equality and women’s empowerment, including the Women in Property Leadership Summit and the PCA’s Girls in Property,” Mr Craig said.
“Five of the 13 Savills employees who were selected to sit on the 2019 PCA committees are female, and seven Savills employees have applied to be participants in this year’s PCA 500 Women in Property program. 
“We wish them every success.”
Mr Craig expressed the sentiment that “the responsibility sits with all of us to make a call to action for accelerating gender parity”. 
“There are plenty of opportunities to show our support and create positive change on and beyond International Women’s Day,” he said.
Savills will celebrate International Women’s Day with staff Q&amp;A panels and networking events at its offices around Australia and New Zealand on Friday, March 8.  Staff members are encouraged to wear purple and upload the official International Women’s Day selfie cards to social media with the hashtag #BalanceForBetter.
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. To learn more about Savills, visit <a href="http://www.savills.com.au/" target="_blank">savills.com.au</a>.
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Striving for #BalanceForBetter on and beyond International Women’s Day

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A standalone showroom, administration and workshop facility with holding income has been listed in Nambour.
The 13,100 sqm property located at 980 Nambour Connection Road is described as 'fully improved' over two levels.
It is being marketed by Jason O’Meara of Savills and Markus Eames of LJ Hooker Commercial via an Expressions of Interest campaign.
Director of Savills, Jason O’Meara, said the property is currently leased to All Class Machinery until August 2020, "bringing in a steady income for the potential buyer."
There was the opportunity for the buyer to then relocate their own business into the facility once the current lease is up, Mr O’Meara said.
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The property currently achieves a current gross annual income of $300,000 plus GST.
The upper level of the building houses a 538 sqm showroom, 451 sqm administrative space, 230 sqm of storage, plus a 371 sqm all weather awning.
While lower level consists of a 302 sqm office, 1,430 sqm workshop, 665 sqm awning, plus a 108 sqm showroom and an additional 185 sqm showroom.
"The well-appointed administrative areas, showrooms, and workshop which is equipped with an oil separator and compressor room, make it a solid investment opportunity,” Mr O’Meara said.
Mr Eames said there are very few (if any) properties of this nature on offer across the Sunshine Coast, particularly with owner occupation in mind in 18 months’ time.
The property has 93m street frontage to Nambour Connection Road, is fully secured, and has been raised above the Q100 flood line.
Expressions of interest for the property close March 28.
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Savills marketing an industrial/retail-showroom facility in Nambour

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A Woolworths-anchored shopping complex in Munno Para, a northern suburb of Adelaide, has hit the market.
The convenience-based shopping centre at 297 Peachey Road occupies a two hectare site and generates around $1,613,400 per annum. 
The centre presents a gross lettable area of 6,390 sqm, comprising the full-line Woolworths supermarket and associated BWS liquor store, which are operating under a new 12-year lease. 
There is also a mix of 17 speciality tenants, including a Smokemart, newsagency, café, medical centre and Terry White Pharmacy. 
 Savills Australia’s Peter Isaksson, Rino Carpinelli and Steven Lerche have been appointed to conduct the expressions-of-interest campaign.
They anticipate strong interest from investors after limited opportunities came to market last year.
“There is no doubt there is pent-up demand from investors wanting to enter growth areas such as Playford,” Isaksson said. 
“Buyers are looking to capitalise on Adelaide’s northern growth corridor and the large number of dwellings to be constructed within the city’s fastest-growing precinct.” 
Woolworths Playford is part of the $1 billion urban development project, Playford Alive, which is being jointly managed by the City of Playford council and state government.  
The precinct comprises popular suburban-lifestyle facilities, such as healthcare, education, recreation and a new $250million town centre. 
Rino Carpinelli said shopping centres like Woolworths Playford were rarely traded in South Australia.
“This centre serves the everyday needs of the local community and is classed as a defensive asset, driven largely by non-discretional shopping,” he said. 
“The centre offers significant depreciation benefits backed by a secure income stream and long weighted average lease expiry of 9.12 years by area,” Mr Isaksson said.
Carpinelli expects investors to be interested in the new and highly regarded retail precinct. 
He went on to say that the shopping centre’s location within a new and highly regarded retail precinct would be a key selling point for astute investors.
“The centre is strategically positioned to benefit from uplift in local retail spend in the coming years, with the main trade area population estimated to increase from 35,340 people as at June 2018, to 47,890 people by 2031,” he said. 
“Similarly, the current retail trade area expenditure of $397 million is forecast to significantly grow to $720 million by 2031.”
 
 
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