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

Joel Robinson

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

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

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

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

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

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

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

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

GRAYA greenlit for riverfront St Lucia apartment development, Silk

Industrial

<html><body>
Private investors are making themselves heard in Victoria’s industrial market with their market share of purchases jumping from 8% to 26% in just eight years, according to Savills Australia.
In the 12 months to June 2006, private investors’ purchases totaled $78 million, or 8%, while in the 12 months to June 2014 purchases totaled $278 million (of sales over $2 million) to 26%.
A compression in primary and secondary yields, now sitting at 7.25% to 8% and 8.75% to 10% respectively, was also noted.
Behind the surge is strong yields, low interest rates, and growing market confidence, which are driving a rise in private investment in Victorian industrial property.
Savills directors Ben Hegert and Chris Jones pointed to their latest deal where a New South Wales investor paid $5.7 million for a 20,661 square metre office and warehouse complex in Melbourne’s Tottenham as an example.
“From ten years ago when they accounted for less than 10% of the market private investors have matured as an investor class in both their approach to and involvement in a market which had been perhaps wrongly perceived as too complex,” said Jones.
“But that has all changed with the realisation that industrial property possesses some of the strongest property fundamentals, and when compared to residential, can offer better yields and more secure lease profiles, among other things,’’ he said.
The growth in industrial interest has also been due to the shift in e-tailing and subsequent growth of warehousing requirements, as well as SMSF allowances.
Meanwhile, Hegerty said that the industrial market has been tightly held in recent years due to a belief that there are few other assets in which to park cash safely.
“What we are seeing now is the market reaching a point where vendors are happier with economic conditions and what that means for investment generally,’’ Hegerty said.
</body></html>

jduke-EHk3XBmHkn

Private investors' share of Victorian industrial market triples in eight years: Savills

<html><body>
The Melbourne-based property developer Virtus Property Group has spent $2.4 million on a Clayton redevelopment site.
The south-east Melbourne sale was brokered by Savills Australia on behalf of a Melbourne-based private investor.
The property, on Audsley Street, is a 6,400 square metre site with Industrial 1 zoning. On the site there are circa 3,300 square metres of buildings, which Virtus is said to be planning to demolish.
The purchaser is expected to re-develop the property with a 24 unit office/factor estate, ranging from 120 to 150 square metres each, explained Savills associate director industrial, Daniel Kelly.
“The property is in an excellent location within a stone’s throw of Clayton shopping strip, train station and all major road networks,” he said.
Virtus Property Group is a relatively new developer, founded by Peter Fountas and Angelo Bruno, who have an industrial focus.
</body></html>

Clayton industrial site snapped up for $2.4 million by developer

<html><body>
City of Sydney Council has put forward plans to rezone industrial areas in the city’s south to allow a wider range of commercial uses.
Although the areas are close to Sydney’s CBD and near suburbs that are in demand for residential development, private housing will generally not be allowed on the land.
Large areas zoned for general and light industrial purposes around <a href="/news">Alexandria</a> and <a href="/news">Rosebery </a>are earmarked to be rezoned as Business Park (see figures 3 and 4).
The only places in which residential development will be allowed are a section of Botany Road that currently permits shop-top housing and senior housing, and two areas on the edge of the Business Park that are being considered as sites where affordable housing could be developed to accommodate lower paid workers.
Attitudes towards land zoning have changed, Council notes in the introduction to its planning proposal. In the past, land use planning sought to divide uses into zones to minimise conflict between uses. Now, there is recognition that benefits could flow from locating a range of activities together, as long as they don’t have an "unreasonable impact" on one another – including raising values to such an extent that industry is priced out of the market by residential development.
The Council expects restricting the land in the areas proposed for rezoning to mainly commercial uses will keep land values down.
The conversion of other commercial and industrial sites in Sydney’s south to residential dwellings has started to have a major impact on the industrial market, and consequently jobs in the area.
Knight Frank’s research shows 71 businesses in the South Sydney commercial sector have been displaced in the past 12 months due to land rezoning with these businesses forced to consider relocating.
Knight Frank’s Industrial South Sydney Manager, Brooke Railton says <a href="/news">Marrickville</a>, in Sydney’s inner west is a popular alternative, given its close proximity to the Port Botany, Sydney Airport, main arterial roads and the CBD.
Fireplace manufacturer Jetmaster recently bought a vacant freestanding warehouse in Marrickville for $3.3 million, after selling two of its properties in redeveloped areas to enable the business to operate out of one location. Knight Frank received close to 80 enquiries on the industrial property. 
Industrial land values in Sydney's south are on average $850 per square metre, Colliers International’s first half Industrial Research &amp; Forecast Report found. That compares with values of $250 per square metre in Sydney's south west and $330 per square metre in the western suburbs.
Residential property prices in suburbs near to the South Sydney employment lands are considerably higher.
In <a href="/news">Erskineville</a>, which borders Alexandria to the west, residential land values were around $520,000 for a 4x32 metre block in 2013, according to the NSW Valuer general. That equates to $4,062.50 a square metre.
In <a href="/news">Mascot</a>, adjacent to the southern end of the employment lands, residential land values rose by 10% between 2012 and 2013 to $665,000 for a 12 x 40 metre block, according to the NSW Valuer general. That equates to $1,385.40 per square metre.
CBRE recently negotiated the sale of a 947 square metre showroom/warehouse facility at 133-141 Botany Road in Waterloo with residential development potential to Advan Properties. The residential property developer intends to lodge a development application for the site’s redevelopment.
The sale price of $4.5 million represented a land rate of $4,751 per square metre, according to CBRE.
Another freestanding commercial property with residential conversion potential, located just south of the City of Sydney employment lands sold to technology solutions firm Crosspoint Telecom for $2.31 million.
CBRE noted in its Q4, 2013 Australian Industrial MarketView report that investors were highly active in Sydney’s industrial market and were prepared to sit patiently on inner-ring assets that might be rezoned for residential use in future.
“A new breed of buyers, comprising mainly of unlisted wholesale groups and syndicators, are targeting these typically smaller assets – priced sub $30 million – due to their close proximity to the city and future redevelopment potential for higher and better use,” CBRE senior director, industrial investments, Matthew Lee says. “These buyers are happy to wait it out on an asset in order to take advantage of retail or residential redevelopment opportunities down the track.”
Click through to the next page to see graphics of City of Sydney Council's rezoning plans.
<hr class="system-pagebreak">
Employment lands in the City of Sydney Council area comprise three precincts:
(a) the southern employment lands – this area is about 265 hectares in size and stretches from the southwest corner of the Green Square Town Centre to the south west corner of the LGA. Generally the area is in the suburbs of Rosebery and Alexandria and is bordered by Gardeners Road to the south, McEvoy Street on the west and Mentmore Avenue and Botany Road on the east;
(b) the Moore Park employment lands – this area is about 3.6 hectares in size and includes a single large lot on which the Moore Park Supa Centa is currently located; and
(c) the Parramatta Road employment lands – this area is about 2.1 hectares in size and includes several small lots in Glebe. The area is bordered by Arundel Street and Parramatta Road and divided by Ross Street.
Source: City of Sydney Council
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 <a href="/images/2014/07/21/zoning-july-21-one.gif" target="_blank"><img src="/images/2014/07/21/zoning-july-21-one.gif" alt=""></a>
Source: City of Sydney
 <a href="/images/2014/07/21/zoning-july-21-two.gif" target="_blank"><img src="/images/2014/07/21/zoning-july-21-two.gif" alt=""></a>
Source: City of Sydney
Existing City of Sydney Southern Employment Lands in context
<a href="/images/2014/07/21/zoning-july-21-three.jpg" target="_blank"><img src="/images/2014/07/21/zoning-july-21-three.jpg" alt=""></a>
Source: City of Sydney Council 
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City of Sydney planning to rezone swathes of southern industrial areas

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GUEST OBSERVATION
Growth can be hard to find in the property market. However, a hidden jewel could be dug up in the industrial sector. 
A secret missed by many investors is the strong historical correlation between house prices and industrial land prices.
While house prices get all the publicity, the industrial sector may be a useful long-term bet.
Here are four reasons why industrial property is Australia’s sweet spot:
<ol>
<li>
Industrial is the hidden growth market  As cities continue to sprawl, industrial land becomes increasingly useful.Companies like Goodman Group are converting industrial sites into apartment blocks, sometimes quadrupling property value. 
</li>
<li>
Warehousing laps up a confidence boost  People are confident during housing booms and strong consumer spending correlates with increased imports, increasing activity in distribution centres. While consumer confidence may still be low now and keeping some buyers out of the market, it will not always be that way. 
</li>
<li>
Industrial property can be a relatively reliable investment  Major developers will not undertake new projects without commitment from tenants. 
</li>
<li>
Market dynamics are good  Supply is kept relatively low, rents have been rising and vacancy rates remain muted at the high end.</li>
</ol>
Julia Forrest is REIT Portfolio Manager at <a href="https://www.btim.com.au" target="_blank">BT Investment Management</a>.
Listen to BT Investment Management’s <a href="https://www.btim.com.au/adviserbriefing/">webinar</a> to find out more.
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Four reasons there may be diamonds in industrial property

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The media tycoon and occasional property developer Kerry Stokes has secured approval to develop one of Australia’s largest industrial estates, some 240 hectares near Newcastle.
Approval has been granted to Stokes's private company, Australian Capital Equity to proceed with its expansion of Northbank by the NSW Department of Planning &amp; Environment.
It is the former Austeel site.
The Northbank Enterprise Hub site was purchased from the NSW government in 2010.
The long-term project first stage of development at Northbank started with the $160 million WesTrac NSW and ACT operational headquarters.
WesTrac, one of the biggest dealers of Caterpillar machinery in the world and part of Seven Group Holdings, is chaired by Kerry Stokes.
The Tomago property will be marketed through Colliers International targeting logistics, distribution companies, warehousing and manufacturing companies. 
It is expected the lots will range from 5,000 square metres to 50 hectares.
He faces competition as the local paper reports the Hunter Corporate Park, a 300 hectare site in the buffer zone of the Tomago Aluminium Smelter on the other side of Tomago Road, is also in the early planning stages.
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Kerry Stokes's Northbank Enterprise Hub at Newcastle gets expansionary approval

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A 4,047 square metre Queensland industrial property has been purchased for $1.3 million plus GST.
The site, at 67 Radley Street, Virginia, was purchased by Corbsmoothy Investments Pty Ltd from S &amp; B Carew Pty Ltd.
It is a vacant industrial land site, with general industry zoning, of regular shape and providing 40 metres of frontage to Radley Street.
JLL’s Brendan Delahunty and Chris Davis negotiated the sale.
“The property presents one of the last remaining land parcels within the tightly-held Northern Industrial precinct of Virginia,” according to Delahunty and Davis.
“It has been purchased by a local owner and developer with the intention to speculatively build a circa 2,200 square metre industrial facility.”
It was noted that there is a very limited supply of prime grade buildings in the 1,000 to 3,000 square metre size range on the north side of Brisbane, so strong interest was received for the listing.
Back in 2012, the property was sold for $1.15 million plus GST to an owner occupier with apparent plans to develop a cold storage facility for dairy products.
Raine &amp; Horne Commercial, who organized the previous sale, noted that it had been occupied by Arrow Caravans since 2002, when they expanded from 38 Radley Street, which had been their premises since 1988. In 2012 they sold due to a Sandgate Road relocation opportunity.
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Queensland industrial site snapped up for $1.3 million

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A local private investor has leased out their Moorabbin warehouse facility and office to Mercury Heating and Cooling Systems.
The new lease has been organised by Savills Australia’s Daniel Kelly and Lynton Williams in the south-east bayside area of Melbourne to the heating and air-conditioning firm.
The property is located off of Warrigal Road in the area’s industrial precinct, at 85 Levanswell Road. It includes a 650 square metre office and warehouse with on-site parking and roller door access.
It is understood that the property was leased on a three year term with a three year option at $43,500 per annum net.
Kelly said that the lessee had relocated from nearby premises to here in order to upsize and keep pace with their business’ growth.
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Local investor secures tenant for Moorabbin office and warehouse

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MAERSK LINE opened a new container depot at Nexus Industrial State in Altona yesterday, taking the spot of anchor tenant at the 40 hectare site.
The Industrial Intermodal Termnius, owned by Salta Properties, sees MAERSK LINE moving in to more than five hectares of the site at its official opening by Victorian Minister for Ports and Major Projects, David Hodgett.
Salta Properties’ executive chairman Sam Tarascio senior said that it is setting a new benchmark for container parks, and that they would work with the company to develop innovative solutions to their business operations.
“The wider community will also benefit from MAERSK LINE shifting to Nexus Industrial in Altona from its previous site at Francis Street in Yarraville where traffic congestion has been an issue,” said Tarascio. 
The Federal and State Government recently contributed to the establishment of Port Rail Shuttle Services, which should improve containerised freight transport system across Melbourne.
MAERSK LINE, Australia and Papua New Guinea managing director Nicolai Noes said that this is a platform for productivity gains for Melbourne-based importers and exporters.
“It presents a future proof platform for a continued optimisation of metropolitan rail solutions, a safe and inspiring work environment for the team on the ground and it is a location chosen with due consideration ensuring no disruption to the local community,” said Noes.
Another Nexus Intermodal Terminal is being developed by Salta Properties in Dandenong South – a 180 hectare site. This is set to open soon, with Bunnings as the anchor tenant.
The Altona Container Depot includes a 20,000 litre container wash bay facility, a first-flush diversion water treatment system, a 2,500 square metre container repair workshop and a 1,500 square metre container survey area. It also has a 43,000 square metre sealed yard.
Configuring the layout of the depot to ensure it optimises the available space and cater for future volume growth was the project for Anthony Randell, operations and customer service manager for MAERSK LINE – Australia.
“We believe that we now have the most sophisticated and technologically advanced container depot set up in Australia,” said Randell.
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MAERSK LINE becomes anchor tenant at 40 hectare Altona industrial site

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Walker Corporation has launched the second stage of its Vicinity Industrial Base in Adelaide given the<a href="https://www.vicinityindustrial.com.au" target="_blank" style="line-height: 1.3em;"> first stage of the 100 hectare estate has almost sold out</a>.
Cahill Transport, Nick Scali Furniture, Rand, Toll NQX, and Kimberly-Clark have taken space at the Direk estate since its initial 2008 launch.
<a href="https://www.realcommercial.com.au/property-land+development-sa-edinburgh-5558505" target="_blank">Vicinity</a> ranks as Adelaide’s most successful industrial subdivision in recent years. It will eventually have about 4000 workers.
 
 
 
<img src="/images/2014/06/18/industrila-estate-june-18-one.jpg" alt="">
However, Colliers International’s latest industrial report <a href="https://www.colliers.com.au/~/media/Files/Corporate/Research/Industrial/Industrial%20First%20Half%202014.ashx" target="_blank">Investors Tighten Their Grip</a> suggests the pending Holden’s Elizabeth plant closure would put pressure on Adelaide’s industrial market.
"The announcement of the Holden plants closure has come as a blow to certain parts of to the South Australian industrial market. 
"Holden and suppliers to the Holden plant account for a significant amount of employment, economic activity and occupiers in the Adelaide Outer North industrial market.
"Although this is likely to have a significant impact on the Outer North, other significant industrial markets in the West, Inner North and South are unlikely to see significant falls in occupancy. 
"Also the full effects of this closure are likely to be staggered as the plant will not cease production until 2017.
"This allows for some time for the South Australian economy to readjust and absorb some of the workforce left from the Holden closure.
"Increases in vacancy in the Outer North are likely to be most acute from 2017 onwards," the Colliers report suggested.
Overall Colliers considers demand for industrial space appears to have improved over the last six months with the level of enquiry and size of requirements improving over this time.
Logistics and transport have been the key tenant type which has driven demand over the last 12 months, supported in part to the significant increases in online retail. 
Tenants looking for prime quality industrial space over 5,000m2 have very limited choices in the Adelaide industrial market with the vacancy rate tightening in the Adelaide industrial market to 4.2%, compared to 4.4% in the second half of 2013.
Overall rentals have eased slightly over the last 12 months with a rental range of $78 per square metre in the Outer South to $143 per square metre in the Inner West.
"Incentives across the market have remained stable with prime incentives currently quoted between 10-15%.
"The outlook for the Adelaide industrial market will be challenging in the Outer North and possibly Inner North in the medium term.
"This is due to the structural change from the automotive industry to another use, which will take time. "For the other industrial regions the outlook is more positive, with demand and enquiry likely to pick up and the lack of A grade space is likely to drive more new construction to meet demand over the next 12 months to two years."
It was in 2008 when Walker Corporation announced it was partnering with prominent South Australian developers Daycorp and Badge on the industrial estate in Adelaide's northern suburbs after the investment by government in transport infrastructure in the region.
The land was being offered from $85 per square metre in 2008.
Some $88 million of Adelaide industrial property transacted during 2013, around 42% below the transactions in 2012.
The largest sale in the year was the new Rand facility which sold in August for $32.3 million by the developer, Pacific Group to Cromwell Property Trust.
Rand Refrigerated Logistics is a 10,500 square metre food distribution centre at the corner of Heaslip and Edinburgh roads. 
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Walker Corporation launches Vicinity Industrial Base, Adelaide second stage

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Prelease opportunities for Sydney’s industrial market are at such a low that infill sites are seeing increased demand, according to CBRE national director, industrial brokerage Jason Edge.
Edge said that englobo sites are highly sought after, but developers and investors are seeking out other opportunities due to supply issues in the market.
“A shortage of new supply entering the market has seen a shift in interest towards infill sites to satisfy the lack of new opportunities,” Edge said. This is despite a recent $55 million purchase by Mirvac in Eastern Creek.
“Furthermore, businesses relying on metropolitan distribution rather than warehouse distribution, as well as a work force reliant on office accommodation, have prompted more and more developers to look at these locations rather than the greenfield sites located at Erskine Park,” he said.
Two properties were recently purchased by Commercial and Industrial Property for $25.9 million – a 5.3 hectare Smithfield site for $14.6 million and a 4.1 hectare Chullora site for $11.3 million.
“Chullora continues to be a location in high demand. Occupiers not only benefit from the surrounding road network, but the Enfield Intermodal Terminal will see this area continue to transform,” said Edge.
Investors are still active in the inner and outer areas of Sydney’s industrial market, explains CBRE Research, with institutional investors and property trusts looking for passive plays. This is often traditional assets with long term leases around the main ring roads of the M4, M5 and M7, explains CBRE senior director of industrial investments Angus Klem.
“There continues to be a strong investment focus on assets within Sydney’s infrastructure-laden areas.”
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