Brisbane development veteran Kevin Seymour's Seymour Group is set to deepen its presence on one of Brisbane's most tightly held riverfront addresses, lodging revised plans for a luxury apartment development on Oxlade, just a few doors down from The Oxlade, which it completed in 2024.

The <a href="https://www.apartments.com.au/new-apartments/70-72-oxlade-drive-new-farm-qld-4005">new project at 70-72 Oxlade Drive</a>, directly north of The Oxlade, will have 27 apartments across a seven-storey building&nbsp;overlooking the Brisbane River and Merthyr Park. It's a revision from a 2021-approved design.

Designed by bureau^proberts, the project has evolved from the previously approved 26-apartment scheme, introducing an additional penthouse level while maintaining a low-density, boutique character. The development will comprise 26 three-bedroom apartments and a single four-bedroom penthouse, supported by two basement levels with 86 car spaces and 34 bicycle spaces.

The architectural response is centred around two distinct building forms separated by a landscaped open-air atrium.&nbsp;"This dual composition captures and embraces Brisbane’s subtropical environment whilst breaking down built form and scale," the submission to the Brisbane City Council noted.

<img alt="First look: Seymour Group returns to Oxlade Drive with revised riverfront apartment plans in New Farm" data-entity-type="file" data-entity-uuid="c12d84d0-bc11-4067-b46f-5bd2d786a34d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/new%20farm%20landscape.png?VersionId=YEPc2k5CAdh6aAPlu4uVpgZadh4MEfRd" />

A defining feature of the design is a deep landscaped void running through the centre of the building, creating what bureau^proberts describes as a "natural ravine" that enhances airflow, daylight penetration and resident amenity. The design report notes that the separation of the two building volumes is intended to maximise natural light, cross-ventilation and outlook while strengthening connections to the surrounding riverfront setting.

Curved balcony edges, integrated planting and extensive landscaping throughout the façade reinforce the subtropical design approach. The building's façade is softened by elevated gardens and planter beds, creating a green edge that complements the established landscape character of Oxlade Drive and neighbouring Merthyr Park.

New Farm has become one of Brisbane's most sought-after suburbs for developers delivering premium downsizer-focused apartments.

GRAYA has been particularly active in the precinct, completing both Chalk and York in recent years, while construction of Moray House, being delivered for Spyre, is now nearing completion. Architect-turned-developer Joe Adsett recently launched <a href="https://www.apartments.com.au/new-apartments/arcilla-new-farm-by-joe-adsett-28-maxwell-street-new-farm-qld-4005">Arcilla on Maxwell Street</a>, an exclusive collection of just nine apartments.

Joel Robinson

First look: Seymour Group returns to New Farm's Oxlade Drive with riverfront apartment plans

A new residential tower will be the first piece of a broader mixed-use precinct set to reshape a prominent Newcastle West site, with local developer <a href="https://www.apartments.com.au/developers/gwh">GWH</a> bringing its <a href="https://www.apartments.com.au/new-apartments/cambridge-quarter-newcastle-west-12-denison-street-newcastle-west-nsw-2302">Cambridge Quarter</a> vision to market.

The first release, Tempo, will introduce 87 apartments across a 24-storey tower, marking Stage 1 of the residential component of a larger urban regeneration project planned for the western end of Newcastle's city centre, encompassing the former Cambridge Hotel site.

Positioned on Denison Street, Tempo has been designed as the inaugural building within Cambridge Quarter, a precinct that will ultimately combine apartments, retail activation and revitalised public spaces including the revamping of the Cambridge Hotel.

[smartcode_project:default project_id=135876 project_image_fid=368856]

The tower will comprise a mix of one, two and three-bedroom apartments, including layouts with multipurpose rooms, catering to a broad cross-section of owner-occupiers. Apartment sizes range from around 60 sqm to 192 sqm, with a number of residences oriented to capture views across Newcastle Harbour, the city skyline and coastline.

GWH has emphasised liveability in the design, with open-plan layouts extending to generous balconies and terraces. Residents will have a choice of two interior palettes, while specifications include engineered stone benchtops, SMEG appliances, full-height bathroom tiling and secure building access. Premium upgrade packages will also be available

Multiple rooftop resident retreats will provide communal outdoor space overlooking the harbour and city, offering an elevated amenity layer above the activity of the precinct below.

[smartcode_project:default project_id=135876 project_image_fid=368851]

The broader Cambridge Quarter vision extends beyond the residential tower itself. Ground-level retail activation and landscaped public areas are planned throughout the precinct, creating a walkable neighbourhood environment connected to the surrounding renewal of Newcastle West. The Cambridge Hotel is also earmarked for future redevelopment into a family-friendly hospitality venue integrated with the new precinct.

The project is strategically positioned within walking distance of Newcastle Interchange, providing access to light rail, regional rail services and direct connections to Sydney. Residents will also be close to Honeysuckle, Newcastle Harbour and the city's beaches and coastal walkways.

[smartcode_project:default project_id=135876 project_image_fid=368852]

For GWH, Cambridge Quarter represents one of its most significant Newcastle developments to date. The locally based developer, which has operated in the Hunter region since 1995, describes the project as a new chapter in the ongoing transformation of Newcastle West.

GWH Executive Director Jonathan Craig said the project had been shaped by a focus on creating lasting community connections.

"We take pride in creating places that last. Spaces where people feel connected, comfortable and a genuine sense of belonging," Craig said.

"Cambridge Quarter is something we are truly proud of, a place shaped by local knowledge, built with care and designed to be part of Newcastle's next chapter."

[smartcode_project_cta:default project_id=135876]

GWH unveils first release at landmark Cambridge Quarter precinct in Newcastle West

<a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a>,&nbsp;Rainbow Bay's busiest developer,&nbsp;has officially lodged plans for the largest development in its booming local portfolio, seeking approval for a further 88 apartments on Boundary Street.

The proposal&nbsp;at <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">209–213 Boundary Street, Coolangatta</a>,&nbsp;marks the next chapter in the developer's transformation of the southern Gold Coast beachside precinct. It will be its fifth in the area, having already delivered Flow, Awaken and Esprit, while construction continues on the 38-apartment Radia. The new project would rise 57 metres above a consolidated 1,518 sqm site, on the same street as Radia and Esprit.

&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, the proposed development comprises 88 two and three-bedroom apartments across a contemporary podium-and-tower form that integrates extensive landscaping from street level through to the rooftop.

The tower would be delivered above a basement and multi-level podium accommodating resident and visitor parking, with the residential component commencing from level three. The design incorporates cascading planting throughout the façade, landscaped podium edges, and deep planting zones along the Boundary Street frontage.

<img alt="First look: S&amp;S Projects lodges plans for 88-apartment wellness tower at Coolangatta's Boundary Street" data-entity-type="file" data-entity-uuid="677e6615-b5c0-4b6c-b4f9-efb14fcde1a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ss%20da%20pers.png?VersionId=YOnPKQm7IFXv0M5H326djEpxk80500Hi" />

A key feature of the development is its expansive rooftop wellness and recreation precinct. Plans reveal a resort-style pool deck, gymnasium, sauna, steam room, hot and cold plunge pools, rooftop terraces, barbecue areas and landscaped relaxation spaces positioned to capture views across the southern Gold Coast coastline.

The rooftop wellness focus builds on the vision S&amp;S Projects first outlined when it acquired the site for $20.25 million last year.

"We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden," S&amp;S Projects founder and director Paul Gedoun said at the time.

The proposal seeks a 57-metre building height, representing a 50 per cent uplift on the site's mapped 38-metre height limit. Planning documents argue the additional height is consistent with recently approved and emerging towers in the immediate Boundary Street and Rainbow Bay precinct.

Urbis, acting as planning consultant, said the development would provide "88 dwellings, comprising a mix of two and three-bedroom apartments, contributing to housing choice and supply within an established medium to high-rise coastal urban neighbourhood."

The scheme has undergone extensive pre-lodgement consultation with the City of Gold Coast, with the design refined following feedback relating to architectural expression, landscaping, traffic access and podium treatment.

<img alt="S&amp;S" data-entity-type="file" data-entity-uuid="0a2d70fd-62ac-4b83-97c6-b798fc1243dd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%209.16.31%E2%80%AFAM.png?VersionId=yHmghUwKM3IVGpBktQU1mE.0Lpf3WimG" />

The architectural team is led by Brisbane-based Cottee Parker, one of Australia's most active residential design studios, with landscape architecture by Dunn + Moran. The consultant team also includes ADG Engineers, Windtech and Acoustic Works.

S&amp;S Projects has become one of the most influential private developers operating on the southern Gold Coast. Since entering Rainbow Bay in 2022, the company has assembled a portfolio exceeding $1 billion in end value, establishing itself as a key player in the area's evolution into a premium apartment destination. Pezet Matheson will again handle the sales for S&amp;S.

Coolangatta is entering another wave of apartment development, following the delivery of several prominent residential projects in recent years.

John Kearney's Immerse Projects will launch&nbsp;<a href="https://www.apartments.com.au/new-apartments/kaiya-kirra-beach-5-haig-street-coolangatta-qld-4225">Kaiya on Haig Street</a>&nbsp;soon, meanwhile, Palm Beach-based Sherpa Property Group is preparing to bring its debut Coolangatta development, <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, to market later this year, subject to approvals.

First look: S&S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street

A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

Retail Market

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Three key concerns among shopping centre managers that continue to impact on their sentiment are competition, online retailing and fuel prices, according to a national JLL Retail Survey.
The main concerns being highlighted by centre managers as impacting their future turnover performance were ‘competition from other centres’ (with a net balance of -40), ‘online retailing’ (-29) and fuel prices (-23). 
Major fluctuations of fuel prices in recent months have created the issue of shopping centre managers.
JLL’s 16th Retail Centre Managers’ Survey was undertaken in February across 109 JLL-managed retail shopping centres nationally.  
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The most positive factors continue to be ‘changes to tenancy profile’, ‘growth expectations within the trade area’ and ‘planned refurbishment activity’.
Head of Property &amp; Asset Management – Australia, Richard Fennell said that the key strategy for many centre managers is to provide a strong food retailing mix. 
Overall tenant enquiry remains subdued, according to Fennell, however enquiry from fresh food and food catering tenants is buoyant. 
He said quality food offering including cafes gives customers a reason to stay longer in centres.
JLL retail figures are showing positive signs of vacancy improving for both sub-regional and neighbourhood centres. 
Neighbourhood centre vacancies improved from 3.7% in June 2016 to 2.6% in December, well below the long-term average of 4.6%  
Sub-regional vacancies improved from 3.5% to 3.0% but remains above the long-term average of 2.2%.
Fennel said that with strong competition from new centres impacting some centres across the JLL portfolio, the reduced vacancy rate reported across neighbourhood and sub-regional centres was a positive outcome.”
The JLL Survey Report identified speciality fashion as being a challenging sector, particularly in larger sub-regional centres where apparel has traditionally been a significant category. 
In part, the decline of this sector has been offset by a stronger focus on non-retail services such as medical centres, financial services and travel agencies.
Completions in 2017 in the major capital city markets are forecast at 416,000 square metres and this is expected to heighten competition in the retail sector.
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j.ballantyne1990-6AQqhLzZaK

Competition remains the key theme impacting sentiment of shopping centre managers

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There has been an increase in the number of shopping centres having some form of casual leasing, according to JLL’s latest retail report.
This annual report highlights the retail market industry and the views of retail centres managers view points on how the retail industry is doing.
Casual mall leasing is an important element in shopping centres with 91% of centres surveyed indicating having some form of casual leasing, up from 86% in the previous survey conducted in August 2016.
Vending machines remain the most common form of casual mall leasing closely followed by casual retailers, media advertising and “kiddie rides”.
Casual leasing is a small but important means of generating additional income for landlords, with many centres having budgets to meet from this revenue source.
Casual mall retailers, or “pop-up” retailers, were identified in 57% of centres, often occupying vacant tenancies or kiosks.
Some respondents indicated success in converting casual retailers into permanent tenants, which has been a positive outcome for the centre as well as the tenant.
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60% of respondents indicated that their centres had current opportunities for casual mall leasing and 57% indicated they had received enquiries for casual leasing over the last six months.
This is down on enquiry levels for the six months to June 2016 (68%) although the report notes that centres with enquiry indicated their level of interest had increased.
The most common enquiry came from charity organisations, with 39% of centres indicating they had received enquiries from such groups over the last six months.
Of the retail enquiries, giftware and fashion were the two largest groups.
The level of enquiry from food and beverage operators was relatively low despite this category dominating overall tenant enquiry in centres.
Food and beverage operators are more willing to make the permanent commitment up-front while fashion and giftware operators have either short-term needs or desire to test the market first.
The low upfront costs offered by casual leasing provides such an opportunity.
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Other enquiries have come from a range of local businesses, services and sporting groups.
This brings an element of the local community into shopping centres, and helps to build the centre’s attraction as a community hub.
There is a continued need for a balance between providing opportunities for new and exciting tenants that may invigorate a mall and ensuring the mall remains pleasant to customers.
Quality of presentation and aggressive “pledge” operators remain the major concerns that need addressing.
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Number of Australian retail centres with casual leasing increases: JLL

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Rental growth remains positive but is below 2% across the JLL neighbourhood and sub-regional centre portfolios, according to JLL’s latest report.
This annual report highlights the retail market industry and the views of retail centres managers on how the retail industry is doing.
Annual rental growth in neighbourhood centres rose from 0.7% in June 2016 to 1.2% in December 2016.
Annual rental growth across the sub-regional centre portfolio declined slightly from 1.8% in June 2016 to 1.5% in December 2016.
However, a number of centre managers highlighted that many tenants had expectations of reduced rents and generous incentives at the end of their current lease term, citing alternative options in neighbouring centres should their expectations not be met.
Rental growth was mixed amongst JLL managed centres, with a third of centres experiencing a decline in average rents and the remaining two thirds reporting an increase.
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Respondents were asked to compare the level of tenant enquiry over the last six months (to December 2016) with the previous six- month period (to June 2016).
Figure 4 highlights the “net balance” in enquiry levels between December 2011 and December 2016.
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Tenant enquiry remained below the neutral 0.0% mark, with a net balance of -6.4% compared with -7.8% in June 2016.
This is the second survey in a row of negative results after four surveys where the net balance was in positive territory.
The results highlight a continued challenging market with relatively subdued tenant enquiry levels.
Overall, response was very similar to the previous Survey covering the six months to June 2016.
Most respondents indicated no change in enquiry levels in the second half of 2016.
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Enquiry continues to be dominated by 'mum and dad' retailers, which reflects both the high number of neighbourhood centres within the centre managers’ survey and the cautious approach being taken by national chains to expansion.
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As with recent surveys, the stand-out sectors continue to be food based retailers and casual leasing.
However, enquiry in these sectors has been stable with at least half the respondents stating that enquiry was moderate, strong, or very strong.
There is a slight improvement in enquiry levels in the discount variety sector.
Japanese groups such as Daiso have been active in this space.
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Retail rental market remains positive despite meagre growth: JLL

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Average sales turnover has declined slightly over the 12 months to December 2016, according to JLL’s latest retail report.
This annual report highlights the retail market industry and the views of retail centres managers view points on how the retail industry is doing.
Turnover in sub-regional centres declined by 0.3% although specialty turnover improved marginally by 0.4%.
The continued poor performance of discount department stores (Kmart being the exception) has impacted sub-regional centre sales.
This is reflected in recent results for the first half of the 2016-17 financial year compared with the corresponding period the previous year:
<ul>
<li>Big W comparable store sales declined by 6.3%;</li>
<li>Target comparable store sales declined by 18.2%;</li>
<li>Kmart comparable store sales increased by 5.7%;</li>
<li>Coles food &amp; liquor comparable sales increased by 1.3%;</li>
<li>Woolworths comparable store sales increased by 1.9%.</li>
</ul>
Vacancy rates in sub-regional centres were also higher in 2016 than in 2015 despite improvement in the second half.
This may have had a slight negative impact on performance during 2016.
Annual neighbourhood centre sales declined by 1.3%.
While competition between supermarkets has been particularly strong and was often noted as a concern by Centre Managers, some centres have seen a range of non-retail services such as medical centres, financial services and travel agencies that do not report sales replace retail stores.
This change in tenancy mix may have impacted overall turnover but may have been a positive for the centre in terms of providing the services customers want at their local centre.
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Retail trade across Australia grew by a modest 3.5% in 2016.
When new centre openings, expansions of existing centres and the continued expansion of global retailers such as Costco, ALDI and fast fashion labels is taken into account, competition for the retail dollar is very strong.
The key area of weakness has been department stores, which managed growth of just 0.6% in 2016.
Discounting amongst supermarkets has kept growth in the supermarket sector to a low 2.6% in 2016, despite relatively strong growth in new supermarkets as the major players fight for market share.
The level of new supply across the neighbourhood, sub-regional and regional centre markets of Australia’s major capital cities was relatively high in 2016 at 347,000sqm.
Even more supply is in the short-term pipeline, with completions expected to peak in 2017 at 416,000sqm.
This will serve to heighten competition in the retail sector.
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Average retail sales turnover declines slightly over past year: JLL

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German retail giant Kaufland is set to arrive on Australian stores.
The big-box has established an Australian website to seek suitable flagship retail sites.
It is hiring for a number of management positions, including an architectural planner.
The company states it “is coming to Australia”, and is seeking staff and property locations to establish its flagship stores.
It currently operates 1230 stores across Europe and employs over 150,000 workers.
Kaufland says it is seeking plots of land with a minimum size of 10,000 square metres, and a preferred size between 20,000 and 15,000 square metres.
“Kaufland has an ambitious Australian investment and development programme.
Therefore we are always looking to purchase land and/or existing or projected developments,” the company website states.
Kaufland stores will be “destination retail”, and unlikely to be placed near other prime shopping locations.
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Kaufland confirms it is coming to Australia as it looks for sites

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The Australian retail investment market is expected to maintain its strong run in 2017 as retail property’s relative value proposition continues.
In 2017, investor demand is likely to remain buoyant while liquidity should increase as more stock is brought to market and the spread between bond and property yields contracts, according to the latest Australia Retail Investment Outlook Report released by Cushman &amp; Wakefield.
Nick Potter, Head of Retail Investments Australia and New Zealand commented: “Australian retail property as a whole remains an attractive investment proposition given the relatively wide gap between the cost of debt and returns on offer.
While we expect this to support further yield compression, it will be more modest than seen over the past year.”
The report reveals that the Australian retail sector is being buffeted by cyclical and structural changes, which will provide opportunities for retailers and landlords alike.
Shorter term changes in the economy and financial markets are influencing spending and investment patterns, while longer term shifts in demographics and technology are changing the way the population live and shop.
Economic, employment and income growth are all forecast to remain positive, though sub-trend, and retail sales should remain in line with this with moving annual turnover (MAT) growth in 2017 of 3-4%.
Variations in retail expenditure between state and territories should narrow as state economic growth moves through different points in the cycle.
Investment transaction activity remained buoyant in 2016 at $7.2bn, with strong support of $1.6bn provided by CBD retail centre transactions.
While total volume declined 14% year-on-year, this was more a reflection of a lack of available stock for purchase.
Looking ahead, investor demand is expected to remain strong in 2017, though more stock is expected to be brought to market, increasing liquidity, which will support investment volumes.
Nick Potter noted: “We expect institutional owners to continue to dispose of non-core assets, such as sub-regional centres in non-metropolitan locations.
Active traders are also likely to offer repositioned assets for sale as they seek new opportunities.
Overall, this will provide opportunities for purchasers all along the risk curve. As a result, heightened liquidity is projected for 2017.”
Structurally, longer term changes are evident as the Australian lifestyle shifts away from large weekly food shopping, towards daily food purchases and increased consumption of prepared meals.
At the retailer level, this evolution has driven development of new “fast dining” options to meet a growing consumer need.
Landlords and developers have used these changes to increasingly pursue mixed use projects and secure “highest and best” site usage.
“With a significant drop in retail centre based floor space per capita, limited green field retail development opportunities and shift towards daily rather than weekly food shopping, mixed-use retail continues to emerge as a major category in Australia’s retail landscape" Nick Potter said.
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Liquidity to increase in 2017 in buoyant retail investment market

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The sale of Masters’ portfolio will result in previously standalone retail assets carved into smaller tenancies, with Chemist Warehouse, Spotlight and other tenancies expected to take up occupancy, according to CBRE’s latest report.
CBRE’s view is that this factor, in conjunction with a relatively soft retail trade environment, will lower rental growth in 2017-18.
"The implication is that there will be an increase in large format retail centre (LFR) supply over the near term," the report says.
“Our view is that LFR supply will grow on average 14% per annum over 2017-18 (assuming Masters conversions take place during this period), which is double the long-term average supply trend of 6% per annum.”
However, growth in LFR supply in metropolitan areas is estimated at 8% per annum over the next two years, not accounting for potential project delays or withdrawals.
While tenants have already secured around 80% of the Masters portfolio, there is likely to be considerable backfill vacancy over the near-to-medium-term outlook period, particularly in secondary stock.
“The housing construction cycle is entering a downturn, and we expect peak growth in household good sales is behind us for this cycle and growth of around 3% will occur over the next couple of years,” the report stated.
This will leave a gap between supply and demand over this period.
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"The gap between LFR supply and demand that we expect will occur over the next two years could be absorbed by growth in retailers that don’t traditionally occupy LFR."
The relaxation of LFR zoning laws in certain states has resulted in an increase of non-traditional retailers, Examples include gyms, supermarkets, childcare centres and government services, occupying LFR spaces.
Since the relaxation of LFR zoning laws in Victoria in 2013, there has been a shift in LFR tenancy mix to include non-traditional tenants.
There is an ongoing push for NSW to adopt a similar deregulatory path, and if this eventuates it will help cushion the impact of Masters store conversions.
Lower rents in LFR (compared to shopping centres) will make it a desirable location for non-traditional tenants such as supermarkets.
“We expect retail rent growth will moderate in 2017 amidst a soft retail trade environment,” the report stated.
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Occupancy costs declined slightly in 2016 for CBD and regional shopping centres but not enough to support strong rent growth in 2017.
National retail yields compressed on average by 50 basic points in 2016, with the largest compression in neighbourhood (60 points) and large format retail centres (60 points).
Yields are at or near record lows for most retail categories.
CBRE forecasts limited compression in 2017 before yields begin to rise from 2018 onwards.
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Smaller tenants to carve up former Masters' retail space: CBRE

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Australia is likely to continue to attract international retail brand entrants in 2017, according to CBRE’s latest report.
Australia’s favourable macroeconomic conditions (relatively strong growth in population and consumption compared to other developed economies) and low international brand penetration (28%) to date enhance the case for entry into Australia.
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Many international retailers are entering the market and taking market share from incumbent businesses that are grappling with the lower sales growth environment and thinner profit margins.
The low penetration rate of international brands appears to have enabled high turnover per store for some new entrants.
H&amp;M’s Sydney and Melbourne stores were among the group’s best global traders with its Australian sales (per store) achieving top three results in its global platform in 2015 and 2016 and twice as productive as its average store sales globally (according to its annual results).
But new international brands entering the market and recently arrived international brads expanding will, at some point, likely cause cannibalisation of incumbent store sales and also lower sales growth for new entrants, the report says.
In some overseas markets new entrants went through a period of consolidation because initial brand rollout plans were too aggressive.
Australia would not be impervious to this scenario if brand rollouts prove overly ambitious, but we suspect that previous experiences should lend some caution to new entrants.
According to CBRE’s retail brand database (tracking about 450 international retailers globally), more than 90 existing international retailers are looking to roll out stores across Australia over the next five years, and another 50 plus brands are looking at launching their first flagship store.
“Luxury retailers were the largest group (by number) to enter Australia in 2016 and we expect this trend to continue for a further two to three years before slowing down as they reach their store targets,” the report stated.
Mid-range fashion and specialist clothing brands are expected to increasingly contribute to brand entry over the next five years.
These types of retailers have a broader target market than luxury brands, who tend to focus on CBD or super prime regional centre locations.
“We are expecting to see the second phase of fast fashion retailers expanding into suburban and regional locations,” the report says.
H&amp;M, for example, has opened numerous stores in suburban locations (typically regional shopping centres) as well as targeting major regional cities.
“We expect other fast fashion brands will follow suit over the coming years, absorbing space that may be vacated by discount department stores and other retail incumbents,” the report warned.
“We expect that over the next five years up to 1.2 million sqm or 7% of current retail stock will be sought by international retailers.
“If this occurs the level of demand is expected to almost absorb the supply pipeline (CBD and shopping centres) over the next five years, reducing the risk of oversupply.”
The upside risk is additional demand from domestic retailers, although that is not a given as the domestic retail industry has experienced profit margin pressure over the past few years.
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International brands to continue coming and setting up shop: CBRE

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Australia’s retail sales performance was weaker in 2016, averaging 3.2% growth compared to 4.3% in 2015, according to CBRE’s latest report.
Most retail categories are underperforming their long-term averages.
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A two-tier market is evident with international retailers expanding while some incumbent, domestic retailers are under pressure.
“Conditions in 2017 are expected to be slightly more challenging than in 2016; we expect only moderate rent growth of between 1%-2% across most retail property categories,” the report stated.
"Australian retailers have faced various challenges in the post-GFC period. First the GFC and then weak trading conditions from 2010 to 2013 caused many retailers to reduce operating costs and undertake consolidation.
"Then as these challenges were beginning to fade, the last three years saw new competition aggressively emerging from international brand entrants, who continue to gain market share, resulting in profit margin pressures for domestic retailers."
Competition has seen closure of over 10,000 retail businesses since 2010. The success of some international brands has been their ability to offer diversity of products at competitive pricing.
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The entry of fast fashion international retailers has coincided with weaker sales performance of incumbent department stores and discount department stores over the past three years.
In the face of tougher conditions, some domestic retailers have responded by altering their offering to remain competitive.
For example, Myer and David Jones have closed underperforming stores and have adopted new store formats (downsized stores, fewer products and better quality) for existing and new stores.
Other retailers including some discount department stores have been slower to adapt and are reportedly facing less certain futures.
"A combination of factors are acting as headwinds for retail," the report says.
Over the past decade spending per capita grew a mere 0.6% per annum, and households aren’t funding consumption with debt to the extent they were prior to the GFC."
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Population growth slowed to 1.4% annually over the last two years compared to 2% between 2004-2013.
"The combination of these factors will contribute to slower retail sales growth in 2017, and with an expected increase in international brands, domestic retailer profit margins are likely to incur further pressure,” the report stated.
"We have already seen profit margins fall for discount department stores (except for Kmart which has reset its strategy), apparel retailers and supermarkets during the past five years."
According to company reports of most listed retail companies, the sectors with the most negative outlooks are supermarkets and homewares and department stores.
Health and beauty and sporting retailers have a more positive outlook. Although retail trade growth was lower overall in 2016, there was positive news in the increase in spending in cafes, restaurants and takeaway food.
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This suggests a preference shift to eating out, and this category has also benefitted from higher volumes of international tourists.
Lifestyle preferences such as convenience and shopping experience (especially amongst younger demographics) are driving upgrades in food courts and higher quality food offerings.
As a result, eating out is on average costing more but is being supported by consumer preference.
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International brands putting local retailers under the pump: CBRE

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The large format retail property sector will likely not be able to sustain the strong growth trend of 2016 as weakening consumer demand for household goods is likely to hurt the sector in the near term, according to new research.
Last year saw a fall in vacancy rates at retail centres, while rental growth was the strongest since before the GFC, investment yields firmed on the back of record investment transactions, and double-digit total returns were recorded. But these buoyant conditions will not be sustained, says research firm BIS Shrapnel’s latest Large Format Retail Property report.
Report author Maria Lee, senior project manager at BIS Shrapnel, notes that the key drivers of consumer demand for household goods—which accounts for the majority of floorspace in large format centres—are either already weak or have started to weaken. Sluggish economic growth and subdued consumer sentiment are likely to continue for some time. 
Meanwhile, housing commencements and alterations and additions activity have peaked, while turnover of existing dwellings fell sharply in 2016. 
“We’re already seeing the effects in turnover data, which has slowed sharply in recent months” says Lee, qualifying that “the larger retailers and chains are holding up better, but they aren’t immune.” 
Chart below shows the slowdown in demand.
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<img src="https://www.urban.com.au/images/2017/02/20/BISShrapnel-chart.png" alt="">
Meanwhile, the closure of Masters and planned reconfiguration of most of its stores into large format centres with an internal mall will cause a spike in ‘new’ supply of centres. 
“There’s still a lot of uncertainty at this stage regarding the fate of the ex- Masters stores. However, if we take at face value Home Consortium’s plans, and allow for Bunnings to take some of the vacant stores, there could be up to 700,000 square metres of ‘new’ centre floorspace as well as new development on sites owned by Masters,” said Lee.
BIS Shrapnel says this represents several years’ demand even allowing for the ‘transfer’ of turnover from Masters to replacement retailers. The report cautions that, at a time of softening demand, the sector could have trouble absorbing the floorspace and forecasts rental growth to weaken. 
On a more positive note, the report predicts stronger consumer spending growth in the longer term and a continued expansion of the retailer pool that large format centres tap into. 
“The sector continues to evolve. Large format centres offer relatively cheap space that is attractive to a range of uses. Some centres are morphing into mixed-use, lifestyle or even convenience centres” says Lee. 
Overall, BIS Shrapnel forecasts internal rates of return of around 10 percent over a five or 10 year investment horizon. This compares well with other shopping centre types and property classes. 
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