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.
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[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Colliers International

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The office vacancy rate in Melbourne's city fringe locations fell to 3.47 percent in March from 4.96 percent in September 2016, according to Colliers International’s Metro Office report.
“This is the lowest vacancy rate that Colliers International has ever recorded for the City Fringe market, and is the outcome of strong demand and very low levels of supply," said the report.
More than 23,000 sqm of office space was absorbed in the year to March 2017, about 9,000 sqm higher than the long-term annual average net absorption rate.
"While creative type tenants have always been attracted to the City Fringe market, tenant take up was seen across a variety of industry types, including National Home Doctor Service (Health), Grey Innovation (Technology), BSGM (Construction) and The Promotions Factory (marketing/manufacturing),” the report stated.
<a href="https://www.propertyobserver.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%2012.38.21%20pm.jpg" target="_blank">Click 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/2017/05/02/Screen%20Shot%202017-05-02%20at%2012.38.21%20pm.jpg" alt="">
Colliers says that it’s not surprised that these strong demand levels and reduced options for tenants in the city fringe has given rise to good rental growth – both face and effective.
“Effective rents grew a record 22.7 percent in the year to March 2017. This effective rental growth is made up of a 13 percent rise in face rents, and a significant reduction in average A Grade incentives from 21 percent to 14 percent."
The secondary grade market is also benefiting from this strong demand with rents growing by 10 percent year on year, with incentives now averaging 18 percent.
Incentives in both the prime and secondary grade markets are low by Melbourne-wide standards (the CBD is averaging 29 percent), indicating the popularity of the city fringe market with tenants.
Owners of secondary grade stock have been taking advantage of the strong market conditions and, where space does come vacant, refurbishing their stock to attract the growing number of tenants who want non-conventional office space in the most sought after city fringe locations.
"The owners of Building 8, 658 Church St and 570 Church St in Richmond have recent leasing success stories following significant vacancy and subsequent refurbishment of their buildings,” the report said.
<a href="https://www.propertyobserver.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%2012.38.30%20pm.jpg" target="_blank">Click 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/2017/05/02/Screen%20Shot%202017-05-02%20at%2012.38.30%20pm.jpg" alt="">
Both buildings were fully let post upgrade works, with incoming tenants paying significantly more rent than the outgoing tenants in order to secure the space.
It is expected that over the remainder of 2017 and into 2018, rents will continue to rise, Colliers says.
“Following the record rental growth over the year to March 2017, we expect that effective rental growth over the year to March 2018 will be 7.5 percent. While lower than the rate we have seen in this past year, this is still well above the long term average growth rate of 4.7 percent per annum.
"Developers, however, have been taking notice of the increase in demand, and the next supply cycle is well and truly underway."
There are currently 17 buildings in planning/mooted stage in the city fringe, a far cry from previous years where residential development dominated the landscape.
A total of 111,500 sqm is planned for construction to 2020, and a further 89,000 sqm in the ‘mooted’ stage.
The next year of supply will be relatively modest, with 10,500 sqm due to complete, said the report.
However, over 2018 and 2019, approximately 95,000 sqm of new supply will come on to the market, according to Colliers.
<a href="https://www.propertyobserver.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%2012.38.43%20pm.jpg" target="_blank">Click to enlarge</a>
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“It is anticipated that at this point in the cycle, incentives will begin to rise.
"Interestingly, the City Fringe market will also reach an important milestone over the next supply cycle– it will become a million square metre market.
There is currently just over 965,000 sqm of office stock in the City Fringe, and by the middle of 2019 we expect supply to tip over the 1,000,000 sqm mark."
The long-term average vacancy rate for the city fringe is 6.2 percent.
"We expect the vacancy rate to stay well under this level until March 2020, when large chunks of supply will tip the vacancy rate up to 7.7 percent,” the report stated.
Colliers says that the Melbourne CBD will also be in the midst of a supply cycle at this time, which will place further pressure on landlords to do competitive deals.
Strong demand in the city fringe hasn’t been confined to the leasing market. Of the $1.37 billion of deals in the Melbourne Metro market in 2016, 70 per cent - or $967 million worth of sales – were transacted on city fringe assets.
"Unsurprisingly, this level of activity had an impact on yields, and we saw 100 bps of compression over the year to March 2017."
A Grade yields now average six per cent in the city fringe.
"Current yield spreads of 327 bps are above the long-term average spread of 315bps, so we expect there is still room for yield compression in this cycle, particularly given the strong leasing conditions,” said the report. 
As an example, Property Observer found a 267 sqm penthouse-level office at <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-502375694">Level 11, 552 Lonsdale Street</a>, Melbourne (above) listed for sale.
Similarly, a 3153 sqm office at <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-502349974">114-128 Flinders Street</a>, Melbourne (below) has been listed for sale.
<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/2017/05/02/114-128%20Flinders%20Street.jpg" alt="">
A 79 sqm office at <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-501693013">Suite 4.04, 838 Collins Street</a>, Melbourne (below) was recently sold in April this year.
<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/2017/05/02/Suite%204.04%20838%20Collins%20Street.jpg" alt="">
Similarly a 291 sqm freehold office at <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-502333430">21-23 Anthony Street</a>, Melbourne (below) was recently sold in April this year.
<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/2017/05/02/21-23%20Anthony%20Street.jpg" alt="">
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j.ballantyne1990-6AQqhLzZaK

Melbourne city fringe office vacancy rate declines: Colliers

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Adelaide’s popular Publishers Hotel is up for grabs, generating interest from developers, hotel operators and investors in a market devoid of large-scale development opportunities.
On a 2,112 sq m dual corner site at <a href="https://www.commercialrealestate.com.au/property/108-112-franklin-street-adelaide-sa-5000-2013504127" target="_blank">108-112 Franklin Street</a>, the CBD pub comprises a boutique front bar, contemporary restaurant, modern kitchen, 600 sq m function room, offices and storage space.
Colliers International’s Alistair Mackie and Paul van Reesema are marketing the property until offers close May 11.
“This property represents an excellent opportunity to acquire a strategic mixed-use development site with adaptive improvements and hotel licences,” Mackie said.
“In the immediate term, options exist to acquire the freehold only or continue operating the hotel and, in the longer term, incorporate this valuable asset into a mixed-use high-rise development,” Van Reesema said.
“Further down the track, developers, hotel operators or speculators can develop the property to its full potential and reap the benefits of owning a large CBD site located only 350 metres from Adelaide Central Market.”
Mackie said the current improvements provided a gross building area of about 3,650sqm.
<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/2017/04/18/Publishers%20Hotel%202.jpg" alt="">
“The elongated shape of the site provides developers the ability to stage high-rise developments up to 17 levels,” he said.
The site is in a rapidly evolving growth precinct of the city, which has undergone significant gentrification during the past five years, including the completion of Quest on Franklin’s serviced apartments, PWC headquarters and Vision On Morphett high-rise apartments.
“It is anticipated that increased population within the area will complement and enhance the range of opportunities and experiences provided in Adelaide, thereby boosting its lifestyle and tourism potential,” Mackie said.
On offer is the freehold site and improvements, together with the hotel leasehold.
Buyers may elect to acquire both or can choose to exclude the hotel leasehold.
The option exists for the vendor to leaseback the hotel for a short period to assist the purchaser during the transitioning phase.
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Adelaide Publishers Hotel property listed for sale

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Total market vacancy in Parramatta is forecast to decline over the short term as pre-commitments absorb any new stock, according to Colliers International’s latest Metro Office report.
“Stage 1 Parramatta Square, which came online at the end of last year, was fully pre- committed by Western Sydney University.
Taking into consideration the development pipeline, 105 Phillip Street (delivery circa 2018, approx. 25,000sqm) is fully committed to the Department of Education and Stage 4 Parramatta Square (delivery circa 2019, approx. 62,000sqm) is fully committed to Property NSW.
These tenants will relocate from Darlinghurst and Sydney CBD which will likely contribute to above average positive net absorption for the period.
Looking further ahead, NAB has fully committed to 42,000sqm at Stage 3 Parramatta Square (delivery circa 2020),” the report stated.
2020 and 2021 should see Parramatta vacancy rising Colliers says.
“Notable vacant space is likely to be available in 2020 and 2021 with Parramatta City Council (126 Church Street), the Office of State Revenue (87 Marsden Street), and the Department of Planning and Environment (10 Valentine) intending to vacate 5,800sqm, 4,000sqm and 5,000sqm respectively.
Additionally, The Commonwealth Bank of Australia will vacate 101 George Street and 150 George Street in 2022 relocating to the Australian Technology Park (ATP) in Redfern, creating backfill space of approximately 40,000sqm.
As a result of the abovementioned movements, by early 2020 vacancy is forecast to fall to 3.3 per cent before increasing to 6.9 per cent by the end of 2021,” the report advised.
Colliers says that A Grade vacancy is likely to remain at full occupancy in the short term, with the secondary market, particularly B Grade, tightening at a faster rate.
“For the second consecutive period A Grade space remains at full occupancy, fuelling strong rental growth.
Over the last 12 months, net face rents have increased 5.8 per cent, with net effective rents increasing 10.4 per cent as incentives fell three percentage points to 15 per cent.
B Grade vacancy has fallen to 6.2 per cent, from 6.8 per cent, resulting in even stronger rental growth,” the report commented.
Net effective rents has increased over the past 12 months due to reduction in incentives Colliers says.
“Net effective rents increased 16.9 per cent over 12 months largely due to the significant 7 percentage point reduction in incentives, falling to 16 per cent.
With a strong pre-commitment market, we anticipate net effective rental growth to exceed historical averages for A and B Grade space of 3.6 per cent year on year and 2.5 per cent year on year respectively.
Over the next 12 months, net effective rents for A and B Grade are expected to grow by 10 per cent and 13 per cent respectively with the average annual growth rate over the next three years forecast at 6.7 per cent (A Grade) and 7.4 per cent (B Grade),” the report stated.
A 25,000 sqm office building at <a href="https://www.realcommercial.com.au/property-offices-nsw-parramatta-502320926">105 Phillip Street</a>, Parramatta (above) has been listed for sale.
A 1563 sqm office at <a href="https://www.realcommercial.com.au/property-offices-nsw-parramatta-501307275">87 Marsden Street</a>, Parramatta (below) was sold recently in April this year.
<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/2017/05/02/87%20Marsden%20Street.jpg" alt="">
Similarly a 2024 sqm office at <a href="https://www.realcommercial.com.au/property-offices-nsw-silverwater-502309706">36 Egerton Street</a>, Silverwater (below) was sold recently in April this year for $3.96 million.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/02/36%20Egerton%20Street.jpg" alt="">
Small office space include a 120 sqm office at <a href="https://www.realcommercial.com.au/property-offices-nsw-granville-502328218?listingType=buy">9 &amp; 10/70-72 Railway Parade</a>, Granville (below) has been listed for between $1.2 million to $1.3 million.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/02/9%20%201070-72%20Railway%20Parade.jpg" alt="">
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Market vacancy in Sydney's Parramatta expected to decline in the short term: Colliers

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$500,000 has been raised during the 2017 Charity Regatta to build a home for homeless youth, under the Foundation’s PIF House Program. Held at the Middle Harbour Yacht Club, the event was sponsored by Colliers International for the seventh year.
Property Industry Foundation national board member and Colliers International ANZ CEO, John Kenny, reflected on the fact every night across Australia there are over 44,000 young people who are homeless.
“Our support for the Foundation and the Regatta is a tangible way for Colliers International to make a real difference to the serious and persistent problem of youth homelessness,” he said.
In the lead up to the event, the Foundation in association with Colliers International, the Youth Sailing Academy and the Cruising Yacht Club of Australia created a two-day Youth Sailing Program.
Aiming to build the confidence of 12 disadvantaged young people and empower them to rebuild their lives, the young people are being assisted by four of the Foundation’s charity partners including Wesley Mission, CatholicCare, Marist180 and Weave Youth &amp; Community Services.
Property Industry Foundation CEO Rosemary Smithson said she was proud of the incredible support response from across the property industry.
“What this shows is that our donors in the property industry are committed to raising funds to rebuild the lives of at-risk and homeless young people,” she said.
Smithson thanked Colliers International as the Principal Sponsor for being such a strong advocate for the Foundation, the Regatta and the Youth Sailing Program.
“The support from Colliers International shows real leadership in corporate philanthropy. By doing that, they are encouraging other corporations to make a difference to the community,” she concluded. 
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Property industry commitment to young homeless people shines in charity regatta

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Falling vacancies and lower incentives are promising a windfall for landlords across the country, according to Colliers International’s latest CBD Office research and forecast report.
The report projects that positive net-effective rent conditions from net face growth will continue to drive tenant demand throughout 2017 on the back of suite strategies, such as that in Chifley Tower in Sydney, and pre-commitment to new developments, such as the new ANZ building in Docklands.
Despite office investment volumes being down in Sydney and Brisbane, and plateauing in Melbourne thoughout 2016, an increase is expected in 2017, as domestic and offshore building owners trade out of their profitable assets.
“The landlord’s market is in full swing in Sydney and Melbourne,” John Marasco, Colliers International’s chief executive for Victoria, said.
“Enquiry levels are still strong, with the majority coming from business services, health and community services, IT and finance, which is resulting in a more positive environment than what has been experienced in the past few years.
“With large players, both domestic and offshore, striving to achieve access and scale, we expect more capital partnering, like what was witnessed between Charter Hall and Morgan Stanley last year for 1 Shelley Street in Sydney, and possibly more merger-and-acquisition opportunities to emerge in 2017.”
Daniel Lees, Colliers International’s research director, said that with the reduction of office supply continuing in Sydney and Melbourne, significant increases in rent and reduction on incentives would be experienced.
“We predict the low supply pipeline will see vacancy rates well below long-term averages in Sydney and Melbourne, beginning to fall in Brisbane, Adelaide and Canberra, and stabilising in Perth,” he said.
Colliers International’s mangaging director for valuations, Dwight Hillier, said the report indicated that the total internal rate of returns would strengthen throughout 2017, prompted by strong effective rental growth in the Sydney and Melbourne CBD office markets.
“Yield compression is forecast for the Sydney metropolitan office market in particular, as purchasers are forced to hunt for initial yield and total return beyond the CBD,” he said.
Sydney’s vacancy is anticipated to trend lower to 3.7% in early 2020, before rising to 5.7% by mid-2022.
“Sydney will enjoy a brief period of respite from negative net supply during the next six months as refurbishments come online.
But negative net supply will quickly return for the subsequent 18 months,” Simon Hunt, Colliers International’s managing director for office leasing, said.
“It won’t be until the first half of 2019, when withdrawals subside and the first building of the next Sydney supply cycle – 60 Martin Place – is complete, that Sydney finally starts a period of positive net supply.”
Vacancy in the Melbourne CBD is declining and will continue to do so during the next few years, with the total vacancy forecast to hit 4.3% in July 2021, due to the lack of supply.
“Melbourne’s supply levels have been far less sporadic than Sydney’s and accompanied by stable absorption,” Hunt said.
“We expect that healthy levels of demand will be sustained throughout the next two years, resulting in vacancy falling to 4.2% by the end of 2018, before the next supply cycle kicks in in 2019.”
Brisbane’s prime vacancy is also expected to continue falling during the next two years as tenants upgrade office space, enticed by incentives and competitive effective rents.
Office vacancy is likely to have peaked in Adelaide, as the construction cycle comes to an end this year and there is limited new supply in the pipeline in the short- to medium-term.
Sales activity remains strong as investors stake their claims in new builds, contributing to a volume of more than $453 million for 2016.
“This cap on new development supply and limited existing additions will help reduce the overall national vacancy from record levels to more historic 10-year averages,” Hunt said.
A-grade vacancy is also declining in Canberra, spurring effective rents to rise on the back of dwindling supplies.
Vacancy in the Perth CBD is stabilising, with major supply likely to be limited to new developments during the next two years.
Smaller tenants are most active, joining the office sector’s “flight to quality” movement to secure the best affordable stock.
The report highlights the increasing demand for suites across the country, with premium landlords carving up whole floors to cater to smaller tenants’ needs and boost effective rent values.
“We anticipate that a lack of whole floor space availability will see 2017’s leasing activity weighted to suites,” Hunt said.
While most grades across the CBD are seeing an increase in face-effective rents, the real story is in the sub-500 square metre B-grade market in fitted-out options, the report said.
Landlords are taking advantage of this demand and building new fitouts in these smaller suites or refurbishing suites with existing fitouts.
"Flexible spaces and the activation of areas for work are rapidly rising and filling the needs of tenants looking for lease flexibility," opined Hunt.
"Even though small businesses and start-ups have favoured flexible space, we should start to see larger businesses taking up more space in 2017, as the preference for flexible lease structures permeates through the market.”
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2017 tipped to be the year of the office landlord

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A freehold building in Sydney's beachisde suburb of Clovelly has sold to a private investor and owner occupier for $2.92 million with a yield of 0.5 percent.
The property, 338-342 Clovelly Road, is opposite the Clovelly Hotel and has two retail shops, two residential apartments and a land area of 455.3 square metres.
The property sold before auction through Matt Pontey and Miron Solomons of Colliers International, with a record 150 enquiries in the first few weeks of the campaign commencing.
Matt Pontey said there have been limited opportunities in the Clovelly area over the last 12 months and interest was received from High Net Worth owner occupiers, private investors, syndicators, value-add specialists and ambitious developers.
<img src="/images/2016/12/01/338-342%20Clovelly%20Road%20Clovelly%20-%20marked%20LR.jpg" alt="">
 
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Clovelly beachside asset breaks local records before auction

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Industrial vacancy rates in Perth are starting to stabilise according to Colliers International, however it is still hard going for WA landlords.
The latest report from Colliers International into the Perth market found vacancy for assets over 2,000sqm increased to 9.1 per ent over the six months to September 2016, with a total of 831,333sqm available for lease.
Colliers said an increase in larger assets over 5,000sqm coming to market and remaining vacant for an extended period drove face rents lower during the 2015-16 financial year.
"The supply of smaller stock sub 2,000sqm has also increased and this is where most of the pain is being felt," the report said.
"Tenants are taking advantage of the soft conditions to secure rent reductions at lease expiries and market rent reviews, which has impacted investment returns.
"Despite softer rents, demand remains the underlying issue and assets are still difficult to lease.
"Typical industrial leases tend to range between three and seven years, with the most common being five years.
"Due to the timing of lease commencement and reviews, some tenants have been locked into boom-time rents, despite trading and economic conditions moderating for the past two years.
"This has, in some cases, severely impacted on the tenant’s bottom line over the past financial year."
The report noted reduced business turnover and the ability to absorb higher rental charges have been impacted by moderating economic activity and slower population growth.
"Perth’s residential construction sector is slowing alongside population growth," it said.
"The flow-on effects of this to the rest of the economy in terms of economic activity and employment are expected to further impact industrial space demand.
"The moderation in commercial and residential construction activity has had a significant impact on direct employment in the sector, with the latest statistics from the Australian Bureau of Statistics indicating 36,400 less employees in the construction sector for the year to September 2016.
"This has had a flow-on effect in ‘Transport and Storage’, ‘Manufacturing’ and ‘Property and Business Services’ employment with falls of 6,200, 1,400 and 700 employees respectively.
"We predict prime warehouse rents will bottom out in 2016, with the market then likely to remain stable for the short to medium term. Vacancy looks to be stabilising based on the early months of the 2016-17 financial year.
"With net face rents now 25 to 30 percent below peak, landlords can expect more stability in subsequent quarters.
"However, demand looks likely to be soft for a little while longer, with vacancy remaining steady. Hence landlords are likely to continue competing vigorously for tenants with plenty of space still on the market.
"It appears the worst of this investment boom downturn may have unfolded and we are now expecting a positive development in the form of less large vacant space coming to market.
"As economic stability establishes following the transition, prospects for a return to growth should improve.
"Despite lacklustre economic conditions, design and construct activity continues to occur, albeit at a lower volume. Although slower, WA’s population continues to grow, and businesses servicing the population base continue to experience demand.
"There is approximately 103,400sqm of space under construction, and scheduled for completion in the next 12 months in the Perth Metropolitan area.
"The most recent major projects include the 30,000sqm Bunnings warehouse and distribution facility in Maddington and a 10,000sqm Cleanaway facility in South Guildford.
"In addition to this a new 24,190sqm Swan Brewery distribution facility is planned for Canning Vale on land that had been subdivided from its former factory.
"The impacts of lower tenant demand are continuing to flow into industrial land demand, where we have seen a general fall in pricing over the past 12 months.
"Developable industrial land supply increased post GFC and this has also negatively impacted land value growth since.
"Looking ahead, we expect land values to stabilise around current levels for core precincts where land availability is limited. For fringe locations, some further moderation is possible, as demand remains weak in the short-term.
"Major transactions in the Greater Perth area declined over the financial year 2015-16. In the twelve months to the end of June 2016, 62 transactions over $3 million were settled for a total value of $712.4 million. This was down 26.2 percent from the 2014-15 financial year result of 84 transactions with a total value of $870.4 million.
"The historically low interest rate environment, combined with yield compression evident across other property sectors and investment classes, is in turn likely to result in increased tolerance of lower or firmer internal rates of return in the industrial market."
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Perth industrial property on the improve, still difficult to lease

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The Adelaide industrial markets have continued to see improvements in vacancy over the first half with vacancy falling to 4.8 percent, down from five percent six months ago, according to Colliers International’s latest report.
Leasing enquiry has also continued to improve with several large requirements in the market which are unlikely to be satisfied with current supply.
This is likely to lead to further design and construct activity in 2017 and into 2018.
One of the largest pre-commitments in the Adelaide industrial market for many years was secured and is under construction in Gillman for a 20,000sqm facility for a Multinational Corporate Client.
On the investment side, there has been limited activity in the market above $5 million price bracket with total sales volume of $50.1 million year to date which is about half of the 10 year average for sales.
Sales below $5 million has seen more activity with owner occupiers being the most active purchaser group in the market.
There has also been an improvement in enquiry to purchase industrial property which is likely to lead to higher sales volumes through the last quarter and into next year.
This has been driven by the low interest rate environment and the opportunity to purchase a facility through a superannuation vehicle or through the business.
This shift has impacted leasing activity with a number of leasing appointments transferring to sales campaigns.
The awarding of the submarines contract to DCNS earlier this year and the building of the o shore patrol vessels in the short term has seen Adelaide become the defence hub in Australia.
The total defence spend for the Federal government is over $90 billion, with a signi cant amount of construction of these projects to occur in Adelaide. This has ensured that there is a future for the defence sector in Adelaide for the next decade and beyond.
Although it is still early in the project, it is expected that there will be several requirements for the construction of new facilities for the submarines project.
The Federal government has invested in the Centre for Defence Capability in Adelaide which will drive innovation in the defence sector as well as open up international opportunities for the defence sector.
This centre is based in Adelaide with a 10 year $230 million federal commitment to grow the defence sector. This sector is likely to drive demand with the current facilities unlikely to meet the demand for this project and hence it is likely to result in construction of new facilities, mostly likely in the northern markets.
Vacancy in the Outer North market has recorded the lowest vacancy rate of all of the precincts with a vacancy rate of 2.8 per cent. This is a dramatic turn-around from 12 months ago where vacancy was recorded at 19.9 per cent.
The Outer North market has the highest exposure to the closure of the Holden plant expected late in 2017, and the high vacancy recorded 12 months ago was a result of several suppliers vacating upon the announcement of the closure.
The Outer North has seen five sales transactions over the last three months with two investment sales and three vacant possession sales which were purchased for owner occupation.
The owner occupier sales were originally listed as leasing opportunities.
The Outer North industrial market are offering very competitive rents for a prime grade buildings and is therefore are an attractive option for tenants.
Prime rents have stabilised over the last 12 months and incentives have also remained stable and therefore there is limited change in effective rents over the last 12 months.
The Outer North market has undergone this significant correction in rental and incentives which has impacted on overall vacancy over the last two years and although there is still likely to be some further vacancy when Holden closes, it is unlikely to be as significantly affected as first predicted.
Despite this there are still some head winds in this precinct with the closure of Holden due in late 2017 as they are the largest occupier in the area.
A number of strategic discussions around the closure of the site have mooted several opportunities, however it remains to be seen what will happen with the Elizabeth site and the surrounding area.
It is clear from recent activity and the significant drop in vacancy rates in the precinct that occupiers, landlords and owners are reacting well in advance of the closure benefiting the whole market.
The next two stages of the upgrade of the north south corridor has commenced.
The Torrens to Torrens project addresses the 3.7 kilometre section of South Road between the Torrens River and Torrens River.
The scope of this project includes the lowering of a 2.5 km section of road, an overpass of the Outer Harbor line and upgrades to the to Torrens Road, Hawker Street, Hurtle Street, Port Road, Grange Road/Manton Street and Ashwin Parade/ West Thebarton Road intersections. This road will have no traffic lights and will see three lanes run in both directions and is due to complete in 2018.
The Darlington upgrade project has commenced construction which will address the section of Main South Road between the Southern Expressway and Ayliffes Road. This will connect the Tonsley site to Flinders University with joint federal and state funding to extend the Tonsley line from the current terminus at Tonsley to the Flinders Medical centre and the Flinders University.
The State and Federal governments recently announced joint funding of $985 million of for the Northern Connector project. This will join the Northern Expressway, Port Wakefield Road, South Road Expressway and the Port River Expressway and will bypass six busy intersections along South Road.
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Vacancy continues to fall across all markets in Adelaide

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A prime retail investment in the heart of Chatswood is for sale. 
It is leased to Star Capital Seafood Chinese Restaurant with a long term 15 year lease that began on March 2013.
<a href="https://www.realcommercial.com.au/property-retail-nsw-chatswood-502175146" target="_blank">Located at 399-403 Victoria Avenue</a>, the property is next to the Chatswood Concourse Theatre and Library.
Westfield Shopping Centre is directly opposite from it along with Chatswood Chase Shopping Centre only 100 metres away.
However the property is currently underdeveloped. It last sold in 2011 at $10.5 million.
But it has the potential to increase the current floor space to allow a mixed use building of 1,740 sqm subject to council approval.
The NLA is 560 sqm with a land area of 696 sqm featuring a rear lane access.
Expressions of interest close on December 1 through Colliers International agents Steam Leung and Henry Burke.
A development company associated with telco giant TPG's Teoh family has acquired the nearby pair of commercial buildings at 282 and 284 Victoria Avenue for about $40 million.
The buildings were sold by he Darin family.
The two assets, located at prime sites opposite Chatswood Chase Shopping Centre, return a gross annual income of $2.3 million.
They also have future residential and mixed-use development potential sitting on 2175 sq m.
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Star Capital Seafood Chinese restaurant premises in Chatswood for sale

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Rosebery Properties and Filetron, a Cottle family company, are selling three separate lots of land with a value of over $100 million in Rosebery.
It is part of an ongoing rapid transformation from industrial to residential.
Located at 12-40 Rosebery Avenue and 108 Dalmeny Avenue, Rosebery, the site consists of a large area of 15,215sqm with existing industrial and commercial buildings equating to 11,722.80sqm generating an existing rental income in excess of $2,000,000 + GST.
The site has a huge dual frontage in excess of 170 metres to both Rosebery Avenue and Dalmeny Avenue and is located within one of Sydney’s strongest new apartment suburbs, with a potential Gross Floor Area of 32,864.40sqm and a height limit of 29 metres.
Agents Michael Crombie and Trent Gallagher of Colliers International have the offering. 
Michael Crombie said it was one of the best sites to come onto the market in 2016.
"It has great scale, over multiple titles, quality buildings and solid income, allowing staging of the development.
“Well known developers have focused heavily on the Rosebery precinct, including Meriton, Mirvac, Stockland, Top Place, LivStyle &amp; JQZ as Rosebery provides a lifestyle choice for the discerning investor or occupier, with so many new trendy eateries within the precinct."
Rates being achieved in nearby residential development projects such as “Symphony” by Meriton a 215 unit brand new development on Epsom Road, Rosebery due for completion mid 2017 are as high as $19,000 per square metre.
Offers close December 6.
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