<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

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The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

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Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

Shopping Centre

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The Muswellbrook Shire Council has exchanged contracts to buy the Muswellbrook Marketplace in the Upper Hunter Region for $34.25 million through Savills.
The Council decided on the purchase to connect the marketplace with Muswellbrook’s Main Street – a community priority of the Town Centre Masterplan.
The single-level mall at 72-78 Brook Street is the single largest landholding in the regional city’s CBD and was put on the market through an expressions of interest campaign earlier this year. 
The mall comprises 12,838 sqm of building area on 1.65 hectares.
The Centre includes a Woolworths Supermarket, Big W DDS, three mini majors and 28 specialty stores, and offers an estimated fully leased net annual income of $2.99 million, according to selling agents Steven Lerche and Andrew Palmer of Savills.
The asset is expected to return around 6.7% of its capital value per annum. The major sub-regional shopping centre is anchored by Woolworths Supermarket and Big W.
Buyer’s agent Damien Holliday of Prosper Group acted on behalf of the Council.
The acquisition of Marketplace aligns Council’s primary strategic objectives of the Muswellbrook Town Centre Strategy and the Future Fund, according to a media release.
The council plans to do a staged renovation of the building and will engage with the tenants towards that end.
“The marketing campaign generated interest from both local and interstate groups who have been looking for centres with value add opportunity,” said Lerche.
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jonathanchancellor-7SQnKwU6yx

Muswellbrook council buys Muswellbrook Marketplace for over $34 million through Savills

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Victorian shopping centres are emerging as the asset of choice for Chinese investors, with the sale of Arena Shopping Centre in Melbourne for $48 million being the latest transaction. 
Over the past 15 months, Chinese investors have spent more than $380 million buying shopping centres across Victoria – highlighting the ongoing strength in investment appetite for well-located assets backed by strong tenancy profiles, according to commercial real estate firm CBRE.
Arena Shopping Centre is located in the south-east suburb of Officer.  
It is anchored by a 4,100 sqm Woolworths Supermarket and BWS on a 20-year lease.
It is positioned on a 2.97 ha site, and has 25 specialty retailers as well as a freestanding McDonald’s and Caltex Service Station.
The centre generates an annual income of $2.65 million per annum and the initial yield works out at 5.38%.
<a href="https://www.propertyobserver.com.au/images/2017/04/27/MELBRetail.png" target="_blank">Click to enlarge</a>
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The sale was brokered by CBRE with the limited supply of neighbourhood shopping centres being offered to the market underpinning strong sale results. 
 
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Chinese investor snaps up Melbourne shopping centre for $48 million 

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Generation Z, considered the future shoppers of Australia, prefer to head in-store to make a purchase rather than buy online.
A recent report by AMP Capital, From A to Gen Z: Shopping with the Future Generation, found that 87 percent either like or love shopping in-store compared to 79 per cent who prefer to shop online.
Mark Kirkland, managing director of AMP Capital Shopping Centres, said the research highlights the importance of developing fun, social experiences in-store and the opportunities that emerge once brands and retailers align their online and offline offerings.
"The continued popularity of shopping in-store provides a positive outlook for retailers," he said.
"It’s important that, as an industry, we constantly evolve to adapt to the current trends that engage our future shoppers in order to stay relevant. It’s vital that retailers and shopping centres engage with the digital world to deliver a seamless online and offline experience that will create new and exciting avenues to connect with their customers. 
“Trailblazing Australian retailers such as Mecca Maxima and Culture Kings have captured the attention of Future Shoppers by creating a personalised customer experience that’s exclusive to in-store.
"These are just a few representations of the future of retail although we look forward to seeing more bold ideas from retailers within this innovative space.
 The RRP report identified four key themes:
1. Don’t panic! Traditional shopping is not dead
<ul>
<li> 53 percent of future shoppers feel more confident when shopping with others compared to just 27 percent of current shoppers.</li>
</ul>
2. Online and bricks-and-mortar work together
<ul>
<li>  61 percent of future shoppers research while in-store compared to 36 percent of current shoppers.</li>
<li>  63 percent of future shoppers use retailers’ wish list functions, compared to 43 percent of current shoppers.</li>
</ul>
3. Don’t just sell me something, mean something to me
<ul>
<li>  Just below 70 percent of both future and current shoppers prefer brands that give back to society.</li>
<li>  59 percent of future shoppers agreed they would pay more for sustainable products compared to 48 percent of current shoppers.</li>
</ul>
4. Male Future Shoppers are a whole new ballgame
<ul>
<li> 46 percent of male future shoppers have said they are more interested in staying ahead of popular trends than 36 percent of their female counterparts.</li>
</ul>
The term future shoppers is used to refer to adult Gen Zs between the ages of 18 – 22 years. Current Shoppers are used to reference the rest of the Australian population aged 23 and over.
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Future of shopping is bricks and mortar

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GUEST OBSERVER
The retail sector continues to thrive in Sydney. 
Low interest rates and Australia’s economic rotation has favoured the south eastern states with consumers, retailers and landlords all enjoying sector tailwinds through the second half of 2016. Unsurprisingly therefore, investor demand in the Sydney region is high, reflected in overall transactional volumes and the associated shift lower in yields.
In many instances, Sydney holds the lowest yield per retail asset class, and the potential for further compression is high, especially within the CBD sector. Strong investor appetite is supported by rental growth as infrastructure development and population growth facilitate consumer demand. 
 
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Melbourne 
The Melbourne retail market has been busier than ever, particularly on the shopping centre front. Institutional investors have been actively managing their portfolios, reinvesting capital into the development of prime assets with an aim to boost income streams and lift capital values. More than 377,000sqm
of shopping centre supply is expected to come online in Victoria through to 2021, boosted by projects such as Chadstone Shopping Centre, West eld Knox, Highpoint Shopping Centre, and West eld Doncaster.
This activity has also translated across the CBD, where landlords have been adding value to their assets to keep up with the competition from their suburban counterparts. We therefore expect rental growth to continue across all major retail markets in Melbourne in the next 12-24 months, as redevelopment activity and the growing presence of international brands continue to spur tenant demand. 
Adelaide
Rundle Mall has seen vacancy increase slightly in the last 12 months, with rents also which has reduced the average slightly. Sales volumes are well below last year, but this is due to two major assets in Rundle Mall transacting last year. Demand for assets in the precinct remain strong which has resulted in yields tightening over the last six months. New development is mostly outside Rundle Mall with developments proposed for the Central Arcade in the Central market and further investment in the public realm for key laneways in the CBD.
Perth
Retail vacancy in the CBD, particularly in the Hay and Murray Street malls, remained relatively low in Perth. This has seen CBD market rents out-perform Neighbourhood and Sub Regional centres, where rents have declined due to softer retail turnover growth, easing tenant demand and increased stock levels. This, along with a moderating population growth, has created more uncertainty for the timing of mooted major centre expansions. However, both population and nominal retail turnover growth are still forecast to grow, even if per capita spend continues to moderate.
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Brisbane
The Brisbane CBD continues to evolve into a new world city as part of the Brisbane City Council’s centre plan. As a result of Council’s works and a state economy that has proved to remain resilient, a number of private and public groups are investing substantial resources in Brisbane’s CBD. As a result of the developing vibrancy of the CBD there are major international brands along with bespoke operators entering the CBD, contributing to a positive feedback cycle which is expected to continue. 
New Zealand 
Eight years on from the global nancial crisis, many retailers in New Zealand have streamlined their operations, ramped up their sales campaigns and, in some cases, rationalised their space to meet the changing demand of the new consumer. New Zealand is also receiving more enquiry from international retailers and a select few national retailers are looking to expand their footprint with a more targeted approach. For these retailers, the new strategies being employed - although challenging - are working. 
Positive underlying retail conditions have given buoyancy to property leasing enquiry and activity. We are seeing occupancy highs in many locations - albeit retailers sticking to basics are the winners. Investors remain competitive and attracted to retail property due to the attractive gap between returns and debt costs in the current low interest rate environment.
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Daniel Lees is director of director of research, Colliers, and can be contacted <a href="https://www.colliers.com.au" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Sydney, Melbourne retail markets busier than ever: Colliers

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One of the most significant retail assets on Brisbane’s bayside, the Horizon @ Wellington Point shopping centre, is being offered for sale by Ray White Commercial in conjunction with JLL.
The major investment opportunity at 685 Old Cleveland Road East, Wellington Point, is a fully tenanted shopping centre, which opened in December 2010.
It is anchored by an IGA Supermarket and 19 other retail and medical tenancies.
Horizon @ Wellington Point is a successful retail/medical complex which currently has 100% occupancy.
Offers close November 24 with Ray White Commercial Bayside agent Nathan Moore and JLL Retail Investment QLD’s Jacob Swan and Campbell Bowers.
The shopping centre returns net rental income of approximately $1.25 million per annum.
Swan said Horizon @ Wellington Point is situated on a land area of approximately 6,099 square metres with a local centre zoning from Redland City Council in an emerging growth centre of South East Queensland.
There is 2,616 square metres of nett lettable area in three buildings and prominent signage opportunities.
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j.ballantyne1990-6AQqhLzZaK

Horizon @ Wellington Point shopping centre for sale

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In times of economic uncertainty retail property is largely regarded as a defensive investment due to the large percentage of non-discretionary spending supporting income streams, such as food.
Over the past 25 years, shopping centres have been increasingly acquired by institutional owners who could actively manage, develop and maintain these centres. The global financial crisis severely curtailed the purchasing power of institutions and allowed other buyers to enter the market.
A sub regional shopping centre is generally defined in the industry as a local shopping centre comprising at least one full line supermarket, a full line discount department store and around 40 or more specialty shops.
The total gross lettable area of retail  floorspace will typically range between 10,000 and 30,000 square metres. The key features include convenience and an expanded range of food, fashion and services, located in residential areas servicing many immediate neighbourhoods. Trading hours will generally be extended and will cater for basic day-to-day retail needs.
Clearly, a number of important factors impact the performance of a sub regional shopping centre. The performance of the supermarket and discount department store has a very strong bearing on the returns of the centre. The supermarket and discount department store can be impacted by the range on offer, the price point, the ratio of car parking and opening hours. This, in turn, can impact the performance of the adjoining specialty stores.
The catchment area also impacts the performance of the centre. The road system, the points of access and competition are important factors. Critically, the size and age of the population as well as capacity for growth in population over the long term can have a material impact on centre performance. Increasingly, ethnic factors are playing a role as centres need to deal with strong levels of immigration.
Employment
The retail sector always faces cyclical and structural issues. Some cyclical issues are starting to move in its favour.
Employment is growing strongly in four or five sectors and shrinking in four or five sectors and the jobs gained and lost are not necessarily in the same physical place. This means certain catchment areas are doing it tough and some are doing well.
The size and shape of the workforce has a profound impact on retail property because wages determine spending and jobs de ne catchment areas. Australia is almost unique in the world as being one of very few countries that have expanded their workforce over the last decade. The size of the Australian workforce continues to grow and unemployment edges down.
This has occurred partly because wages growth has been insipid allowing more workers to be hired than may otherwise be the case. Asset price inflation has bolstered household wealth whilst household income growth has been subdued. Positive contributions to household spending capacity have come in the form of lower interest rates, lower petrol prices and greater comfort around job security. Nevertheless, growth in household disposable income remains below average.
The newly arrived population has a profound impact on property because they need somewhere to live and goods to put in their homes. Instant housing and bulky goods demand. Less people leaving the country means fewer houses freed up for those arriving.
With the size of the workforce growing and more people coming into the country (and less leaving), it is little wonder that a record level of housing construction is underway. A moderation in bank lending coupled with changes to taxation on foreign investors and stringent planning rules has seen a recent fall in dwelling building approvals. This leads us to believe we are at, or near, the peak in housing construction for this cycle. 
Consumer spending
Changes in consumer spending patterns since 2007 appear to have had an adverse effect on department store, apparel and discretionary retailing turnover generally.
This has impacted tenants in regional and some sub regional shopping centres. Some sub regional shopping centres have been immune from this. The ABS turnover statistics in the accompanying table show strong growth over a long period in most of the retail categories found at a sub regional shopping centre. Supermarkets have been enjoying strong turnover growth as have their associated liquor stores.
Discount department stores dealing in electronics, household goods including furniture and discount clothing have also enjoyed strong turnover growth. Associated specialty stores such as a chemist, a take away food store, a bakery, a newsagent and other local service providers such as a dry cleaner may be found in the tenancy mix.
<a href="/images/2016/09/29/National%20Retail%20Turnover%20Growth%20by%20Category%20Seasonally%20Adjusted%2012%20months%20to%20May%202016.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/29/National%20Retail%20Turnover%20Growth%20by%20Category%20Seasonally%20Adjusted%2012%20months%20to%20May%202016.jpg" alt="">
The structural issues facing retail are more formidable but not insurmountable. Savills expects the retail sector to evolve to take advantage of the structural issues rather than be over-run by them. The ageing of the population will continue to create challenges for retailers as they jockey for the dollars of retirees.
Retirees can be expected to prefer services over goods and will not necessarily continue to dwell in their traditional catchment areas. Internet retailing has already changed the face of retailing for certain categories of goods and will no doubt continue to evolve and challenge more categories over time. New business models are establishing themselves.
<a href="/images/2016/09/29/Change%20in%20Moving%20Annual%20Turnover%20by%20Category.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/29/Change%20in%20Moving%20Annual%20Turnover%20by%20Category.jpg" alt="">
Sales activity
Savills recorded $1.9 billion of sub regional shopping centre transactions nationally in the 12 months to June 2016, commensurate with $1.9 billion in the previous year and up on the five-year average of $1.6 billion.
In the year to June 2016, 20 sub regional shopping centres were sold against 23 the previous year and is commensurate with the five year average of 20 sales per annum.
<a href="/images/2016/09/29/Sub%20Regional%20Property%20Sales.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/29/Sub%20Regional%20Property%20Sales.jpg" alt="">
There are several factors at work in the capital markets which are having an impact on asset prices. First, there is an abundance of debt and equity available to purchase prime commercial assets on current metrics; second, the pricing of debt and equity domestically, and especially overseas, continues to fall; third, investment fundamentals are sound with no oversupply, little vacancy and good rental growth; and, finally, catchment area fundamentals remain appealing with strong population growth, low unemployment and stable to rising household incomes.
<a href="/images/2016/09/29/Sub%20Regional%20Property%20Sales%20by%20State.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/29/Sub%20Regional%20Property%20Sales%20by%20State.jpg" alt="">
Institutions remained active in the investment market for the 12 months ended June 2016, purchasing 77% of all sub regional shopping centres sold. Foreign investors continue to pursue sub regional shopping centres purchasing 9% of sub regional shopping centres sold. Conditions for Australian institutions have continued to improve and so private investors are increasingly finding themselves unable to compete.
<a href="/images/2016/09/29/Sub%20Regional%20Property%20Sales%20Buyer%20Profile.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/29/Sub%20Regional%20Property%20Sales%20Buyer%20Profile.jpg" alt="">
The average initial yield analysed from transactions of sub regional shopping centres in the year to June 2016 was 6.84% and compares to 7.47% the previous year. The average equated market yield analysed from transactions in the year to June 2016 was 6.97% and compares to 7.49% the previous year
<a href="/images/2016/09/29/Sub%20Regional%20Property%20Sales%20Vendor%20Profile.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/29/Sub%20Regional%20Property%20Sales%20Vendor%20Profile.jpg" alt="">
 . Prime neighbourhood yields at 6.75% in 2006, softening 100 basis points to 7.75% during the GFC and firming 200 basis points to 5.75% currently
. Prime sub regional yields were also at 6.75% in 2006, softening 50 basis points to 7.25% during the GFC and firming 150 basis points to 5.75% currently
. Prime regional (excluding super regional) yields were at 4.75% in 2006, softening 100 basis points to 5.75% during the GFC and firming 100 basis points to 4.75% currently
<a href="/images/2016/09/29/Sub%20Regional%20Property%20Sales%20by%20State%20graph.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/29/Sub%20Regional%20Property%20Sales%20by%20State%20graph.jpg" alt="">
Given the falling costs of both debt and equity and the adopted “lower for longer” view of Savills Research we believe there is more yield compression to come.
Nationally, shopping centre investment yields have continued to firm as highlighted in the both the chart below and in the tables of recent transactions. Sub regional shopping centres continue to transact across a broad range of yields in line with the characteristics of the individual properties.
<a href="/images/2016/09/29/Buyers%20and%20Vendors.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/29/Buyers%20and%20Vendors.jpg" alt="">
Sub regional shopping centre yields as at June 2016 currently range between 5.75% and 7.00%. Typically, yields have firmed from the trough in 2010 by 160 basis points for sub regional shopping centres.
<a href="/images/2016/09/29/Market%20Yields%20by%20Centre%20Type.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/29/Market%20Yields%20by%20Centre%20Type.jpg" alt="">
Outlook
Australia has been enjoying strong population growth for over a decade and this policy of immigration retains bi-partisan support at Federal Government level.
The history of wealth (and real estate wealth in particular) is the history of immigration. Australia, and Australian capital cities in particular, is forecast to enjoy the fruits of strong immigration.
Retail property can be expected to be a beneficiary of strong population growth. Clearly, some catchment areas will do better than others and this will continue to present the greatest challenge and greatest opportunity for investors.
Catchment areas that can grow their populations through new land release or infill development or pro-active planning policies, should show dramatic increases in turnover especially if the ability to increase retail floorspace is limited. Conversely, those catchment areas that cannot grow their populations with limited available new land supply, draconian or archaic residential planning systems and the capacity for expanded retail competition should deliver below average increases in turnover.
Savills is of the view that interest rates will be “lower for longer” and, combined with a weight of investment capital, should continue to see assets keenly sought after and strong yields given prevailing catchment area fundamentals.
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Many factors in play for sub-regional shopping centre success: Savills

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The Charter Hall Group has teamed up with leading super fund MTAA Super to acquire Campbelltown Mall for $197 million, in the largest individual sub-regional shopping centre transaction in 2016.
Charter Hall bought the mall from Perron Group, with JLL’s Simon Rooney negotiating the deal. The transaction reflects a market capitalisation rate of 6%, said a media release.
Campbelltown Mall is located in one of Sydney’s largest south western suburban business districts and comprises an established, performing convenience-based shopping centre. 
The mall comprises Coles, Woolworths, Kmart, Target and Aldi together with 10 mini majors and 84 specialty tenancies, with a 98% occupancy and 4.7 year weighted average lease expiry. It’s gross lettable area is more than 42,200 sqm and sits on a 7.2 hectare site.
Rooney, JLL’s head of Retail Investments – Australasia, said, “We continue to see a depth of institutional investor interest in strong performing sub-regional shopping centres, especially for assets in growth corridors, with opportunities for value add.”
Charter Hall has set up a fund called Charter Hall Prime Retail Fund (CPRF) to manage the asset along with MTAA. Charter Hall said it will co-invest $46 million for the acquisition.
Charter Hall’s retail head Greg Chubb said,” The property is the seed asset for CPRF, which will focus on acquiring and actively managing larger convenience-based retail centres with strong growth potential.”
The deal is due to close in October 2016.
Rooney added that Campbelltown Mall was the largest individual sub-regional shopping centre sold this year following divestments by Vicinity Centres.
The largest sub-regional transactions for 2016 to date, include Vicinity Centres sales of:
• Four sub-regional centres to Blackstone and Mirvac (AUD 841.4 million) in June
• A 50 percent interest in Runaway Bay to Perron Group (AUD 160 million) in June; and
• A 50 percent interest in Tuggeranong Hyperdome to TTCT Investments (AUD 120 million) in September.
“The sub-regional sector has continued its record level of activity, with $1.7 billion in transactions in 2016 year-to-date, building on the $2.8 billion in 2015 – which was a record high for the Australian market,” said Rooney.
 
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Charter Hall acquires Campbelltown Mall for $197 million

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A Fort Street Real Estate Capital-managed fund has bought two neighbourhood shopping centres.
Set in Sydney and Adelaide they cost close to $70 million taking the total asset value in the Australian Property Opportunities Fund II to $130 million.
David Rogers, director of investments for Fort St Real Estate Capital, said despite yield compression commercial real estate like retail malls remain desirable.
APOF II has acquired the Marketfair Campbelltown mall for $48.25 million, representing a fully leased yield of 6.5 percent through Stonebridge Property Group.
The identity of the Adelaide centre has not been disclosed. It is understood the price was just under $20 million.
Fort Street Real Estate is a joint venture between Fort Street and Dixon Advisory Group.
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Fort Street Real Estate Capital and Dixon Advisory seek further retail investments

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AMP chief executive officer Craig Meller and City of Gold Coast Mayor Tom Tate opened AMP Capital's Pacific Fair shopping centre on the Gold Coast following a $670 million redevelopment.
Construction began January 2014 with 50,000 square metres (sqm) added to the existing centre. At 155,000 sqm Pacific Fair the fourth largest shopping centre in Australia with around 420 stores.
The last stores are slated to open September 2016.
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mick.cee-iDmgDDAmu8

AMP Capital opens $670m Pacific Fair on Gold Coast

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Sentinel Property Group has sold off the Jimboomba Junction Shopping Centre in Queensland’s Logan City for $27.48 million in an off-market deal, continuing with its recent divestment of assets.
The Coles-anchored neighbourhood shopping centre at 665-687 Cusack Lane services the rural township of Jimboomba in Logan City, midway between Brisbane and the Gold Coast.
Sentinel acquired the site in September 2014 for $20 million and the current deal follows on the heels of its sale of an industrial property at Richlands in Brisbane for $15.75 million.
The Jimboomba deal was brokered by Jacob Swan of JLL.
The property consists of five separate buildings with a total net lettable area of 5,949 sqm and 281 carparks. Tenants include Coles, The Reject Shop, Amcal, Caltex, Red Rooster, Brumby’s Bakery, Zarraffas Coffee plus 13 specialty retailers and professional suites.
Sentinel managing director Warren Ebert said it was a great result for its investors. 
“Investors in the Sentinel Jimboomba Retail Trust have enjoyed two years of consistent returns of 10% per annum paid monthly and now also benefit from a strong capital return on divestment,” he said.
“There is a time to buy and a time to sell and we will continue to review all opportunities to deliver attractive capital growth to our investors,” Ebert said. “We have bought very well in what were unloved sectors at the time but are now back in favour. As a result, we are receiving a number of unsolicited offers to acquire our strongly performing assets.”
Ebert said Sentinel was also exploring a number of potential acquisitions in the retail, industrial and office sectors nationally, in line with its investment criteria.
Brisbane-based Sentinel has more than 600 investors nationally who receive monthly returns from rental income, as well as special capital return payments on revaluations and capital growth returns on divestment.
Established in 2010, Sentinel (<a href="https://www.sentinelpg.com.au/">www.sentinelpg.com.a</a>u.) is among Australia’s top unlisted commercial property fund managers, with a portfolio of 43 retail, industrial, office, land, tourism and agribusiness assets valued at more than $1 billion.
It has occupied the No. 1 spot on the PCA/IPD (Property Council of Australia/Investment Property Databank) Non-Core Property Fund Index 42 of the last 49 months.
The index, introduced in October 2011, is backed by the global equity indexes of Morgan Stanley Capital International (MSCI) and is based on total fund performance.
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