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<p>A supermarket in one of Australia’s largest urban renewal projects has sold less than a month after it opened.</p><p>The supermaket on the ground floor of the 31-storey <a href="https://www.theurbandeveloper.com/articles/melbourne-most-searched-development-projects-2022" data-mce-href="https://www.theurbandeveloper.com/articles/melbourne-most-searched-development-projects-2022">R.Iconic</a> at Melbourne’s Fishermans Bend precinct changed hands for $17.5 million in a sale brokered by Fitzroys’ Chris Kombi, Chris James and Ben Liu. </p><p>The vendor was the developer of the tower, R.Corporation, while the buyer was a Melbourne-based private self-managed super fund investor who has not been identified.</p><p>The space is tentanted by Coles and Liquorland. It opened for business on November 1.</p><p>The deal is one of the biggest sales of a strata-titled retail property across Australia in 2023, according to Fitzroys.</p><p>The outlets comprise 1752sq m of GFA in the tower’s ground floor, which has a 90m frontage to Normanby Road and Boundary Street.</p><p>The first of two towers, R.Iconic tower one comprises 456 apartments. The second tower is planned to have 471 homes across 40 levels on a site next door at 253 Normanby Road.</p><div id="01zTHcC1CBDcoovgDNRANX"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6rcdkTaFYGHqmFEJiCqIDi/0090c8f7eba04b1de09596f7e3acdc13/2.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/6rcdkTaFYGHqmFEJiCqIDi/0090c8f7eba04b1de09596f7e3acdc13/2.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The supermarket is in the first of two towers in the R.Iconic development.<br><br></span></div></div><p>Normanby Road is becoming a major highrise thoroughfare, with several other 30-plus storey developments under construction or planned. This includes a <a href="file:///Users/katiedriml/Downloads/Melbourne-based%20build-to-rent%20platform%20Local%20Residential%20has%20just%20begun%20construction%20on%20its%20second%20project%20in%20the%20city,%20at%20247%20Normanby%20Road%20in%20South%20Melbourne." data-mce-href="file:///Users/katiedriml/Downloads/Melbourne-based%20build-to-rent%20platform%20Local%20Residential%20has%20just%20begun%20construction%20on%20its%20second%20project%20in%20the%20city,%20at%20247%20Normanby%20Road%20in%20South%20Melbourne.">40-storey build-to-rent tower</a> now under construction at 247 Normanby Road.</p><p>R.Iconic is opposite the Montague Street Light Rail Station and within walking distance of Crown Casino, Southbank Promenade, the Melbourne CBD and Docklands. There is also access to major arterials including Citylink and West Gate Freeway.</p><p>“The property is at the epicentre of the Montague precinct’s building boom, with 4800 homes within 500m at various stages of completion, planning and construction,” James said.</p><p>“Coles undertook a feasibility study of the area and has made the astute decision to get into a prime location of the Montague precinct … investors clearly agreed on the strategic location and its trade prospects which will underpin the lease covenant.”</p><p>The 480ha Fishermans Bend had a population of 4354—the Melbourne City Council expected this would skyrocket to 80,000 and provide employment for 80,000 by 2050, James said.</p><div id="3GHEGdlFe2yWQugopF4lNo"><picture><img src="//images.ctfassets.net/8pr762qjocl3/4UP3kA1vGXYHOJIQAJ1LGn/d8538f8044c1f6b7bc42b02429ea8aed/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/4UP3kA1vGXYHOJIQAJ1LGn/d8538f8044c1f6b7bc42b02429ea8aed/1.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The Coles opened in the tower on November 1.<br><br></span></div></div><p>Liu said the resilience of essential services and daily needs retail had been “resoundingly demonstrated during the past few years”.</p><p>“This deal is the latest evidence of ongoing demand from investors for highly defensive assets deemed to be recession-proof.</p><p>“Income-producing assets purchased now in the current economic environment will prove to be prudent investments over time.”</p>

The sale of a now Coles-tenanted outlet in a 31-storey tower in Melbourne’s Fishermans Bend has “underlined the resilience of daily needs retail”…

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<p>Home values reached a record high in November but the signs are there the market’s cooling for some capitals, according to data released this week.</p><p>CoreLogic’s national Home Value Index (HVI) rose 0.6 per cent in November, the smallest monthly gain since the growth cycle began in February.</p><p>Despite the slowdown, the national HVI reached a record high in November.&nbsp;</p><p>After falling 7.5 per cent from a peak in April, 2022 to a trough in January, 2023, housing values have bounced 8.3 per cent higher during the past 10 months, demonstrating a clear ‘V’-shaped recovery, CoreLogic said</p><p>“While the headline trends have slowed, multi-speed conditions have become increasingly evident across the capitals, with three cities recording a decline in values during the month,” CoreLogic said.&nbsp;</p><p><strong>Home Value Index, November, 2023: Change in home values</strong></p><div id="4zctFaLD07Nq0XLH6lRinT"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3QPL4nfD5VpZjc0r3lbNML/3f76b093216e4fd2b03e9eef6bc5257e/corelogic__values.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/3QPL4nfD5VpZjc0r3lbNML/3f76b093216e4fd2b03e9eef6bc5257e/corelogic__values.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Source: Corelogic<br><br></span></div></div><p>These were Melbourne and Hobart, both down 0.1 per cent, and Darwin, down 0.3 per cent.</p><p>Growth in Sydney home values also slowed sharply, reducing to 0.3 per cent, the smallest monthly gain through the recovery cycle to-date.</p><p>“With Sydney home values slipping into negative growth during the last week of the month, we could see Sydney following Melbourne’s lead, with home values stabilising or dipping lower in December,” CoreLogic said.</p><p>On the flip side, Perth housing values accelerated in November, posting the largest monthly gain since March 2021 at 1.9 per cent. Brisbane (1.3 per cent) and Adelaide (1.2 per cent) also stood out with a resilient and rapid pace of growth.</p><p>CoreLogic research director Tim Lawless said these three cities continued to show remarkably low levels of advertised supply while purchasing activity is holding above average levels.</p><p>“This imbalance between available supply and demonstrated demand is keeping strong upwards pressure on housing values across these markets, despite the downside factors leading to weaker housing market conditions across the lower eastern seaboard,” Lawless said.</p><p>“The Melbourne Cup Day rate hike has clearly taken some heat out of the market but other factors such as rising advertised stock levels, worsening affordability and persistently low consumer sentiment are also acting as a drag on value growth in some markets.”</p><div id="1PZTwaJLLt4KqKqs8irOVD"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6fk7oSHa5zeIYYWEGXPL2T/f11662c6cc852818c123403f0782a923/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/6fk7oSHa5zeIYYWEGXPL2T/f11662c6cc852818c123403f0782a923/1.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Sydney home values slid into negative growth during the last week of the month.<br><br></span></div></div><p>Regional Australia’s housing values remain 1.8 per cent below the historic high recorded in May 2022, with Regional Victoria (-6.7 per cent) and Regional NSW (-5.5 per cent) recording the largest shortfall from record levels.</p><h2>Building approvals bounce back</h2><p><br>The total number of homes approved rose 7.5 per cent in October, in seasonally adjusted terms, after a 4 per cent decrease in September, according to data from the Australian Bureau of Statistics (ABS), also released this week.</p><p>ABS head of construction statistics Daniel Rossi said approvals for private sector homes excluding houses increased 19.5 per cent after a 3.4 per cent fall in September, while approvals for private sector houses rose 2.2 per cent on the heels of a 4.7 per cent September decrease.</p><p>“Despite the monthly increase, total homes approved have been low this financial year,” he said.</p><p>“In original terms, 55,029 homes were approved between July and October in 2023, compared to 65,599 during the same period in 2022.”</p><p>Total home approvals were driven by increases in Western Australia (11 per cent), Queensland (10.7 per cent), and NSW (9.6 per cent).</p><div id="2LdD1TR9Eyx8mXuRDAjhj8"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3mLkrERsAqx8rXyUgIhcX6/16debdc65abe7fa65d8c77aa4fe1155e/2.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/3mLkrERsAqx8rXyUgIhcX6/16debdc65abe7fa65d8c77aa4fe1155e/2.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Approvals declined in Victoria, Tasmania and SA.<br><br></span></div></div><p>Falls were recorded in Tasmania (-14.4 per cent), South Australia (-7.2 per cent), and Victoria (-1.4 per cent).</p><p>Approvals for private sector houses rose in WA (11.7 per cent), Victoria (6.5 per cent), and SA (0.8 per cent). New South Wales (-4.9 per cent) and Queensland (-3.4 per cent) dropped in October.</p><p>The value of total building approvals rose 6.7 per cent after a 5.3 per cent fall in September, while the value of total residential building rose 7 per cent, made up of an 8.9 per cent increase in new residential building and a 3.2 per cent decrease in alterations and additions.</p><p>The value of non-residential building approved rose 6.2 per cent, well up on a 7.6 per cent fall in September.</p>

National home value index is at an all-time high, but signs are strong that the market is cooling…

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<p>The largest urban renewal in Brisbane since South Bank is moving ahead, says the state government, and they’ve got a new name for it.</p><p>The Gabba Stadium Project Validation Report (PVR) had been completed, the government said, and community consultation on the urban renewal was under way, including what Brisbanites think of calling it “East Bank”.</p><p>The new name would cover the broader Woolloongabba urban renewal precinct, which includes much of the suburb.</p><p>“The vision for the precinct is to be a vibrant place on event and non-event days that is better connected and more sustainable and supports more open space, proving a lasting legacy for residents,” the government said.</p><p>“The broader precinct provides the opportunity for urban renewal of a world-renowned location for the enjoyment of residents and those who visit for work or fun.</p><p>“It will deliver a great mix of uses, from commercial and retail opportunities to hotel and residential options, including at least 20 per cent social and affordable housing.”</p><p>The government said the full stadium rebuild would support this vision, as well as “providing an optimal fan experience and achieve international best practice”.</p><p>The PVR provides detail on how The Gabba stadium would be fully deconstructed and rebuilt to support Queensland’s long-term sport, community, and entertainment needs before, and for decades after, Brisbane 2032.</p><p>In 2018, before the successful bid for the Brisbane 2032 Olympic and Paralympic Games, the Stadium Taskforce Report found that The Gabba was a “tired” venue and that it would come to the end of its useful life by 2030, indicating a rebuilt Gabba should be considered irrespective of the Games.</p><p>Of the four options considered in the PVR, the one selected not only provides the best value for money, but also hits the mark on all four key pillars, including being a catalyst for sustainable urban renewal, investment and ability to attract and host world-class events, according to the government.</p><p>Deconstruction is due to begin in 2025, and the new stadium to be ready for use in 2030, well ahead of Brisbane 2032.</p><div id="2kFjCBn8b0mHO8AqdhYeSG"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1rDKpewRwurgUCuEV5QGVE/e6075db1e5155f33cd20c7716271a2eb/_NEW_Reference_Design_Report_-_PART_C_Precinct_Masterplan.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/1rDKpewRwurgUCuEV5QGVE/e6075db1e5155f33cd20c7716271a2eb/_NEW_Reference_Design_Report_-_PART_C_Precinct_Masterplan.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ A graphic overview of the Gabba precinct.<br><br></span></div></div><p>This rebuild is within the Woolloongabba Priority Development Area (PDA), which will also include the Cross River Rail and the Brisbane Metro connect to South Bank, the Brisbane CBD and new Brisbane Arena at Roma St via a walkable spine, an active travel corridor to South Bank plus Brisbane City Council’s new green bridge.</p><p>The new Gabba stadium improvements include:</p><ul><li><p>Better viewing through an enhanced design to provide a 360-degree fan experience</p></li><li><p>Larger entries and concourses for better admission</p></li><li><p>Better connectivity and accessibility throughout, including lifts and escalators</p></li><li><p>Two pedestrian bridges across Main Street to form the ‘station to stadium’ connection between the stadium and the Cross River Rail station, as well as a pedestrian bridge over Stanley Street</p></li><li><p>50,000 seats (potential for greater than 50,000 seats in legacy mode depending on the sport and between 50,000 and more than 70,000 for concerts, depending on placement of stage and standing or seated, among other factors)</p></li><li><p>Seamless connection to the broader precinct, currently being masterplanned to create a new mixed-use precinct with increased greenspace, retail and dining.</p></li></ul><p>Deputy Premier Steven Miles said The Gabba’s 128-year history made it “iconic for Queensland, and this redevelopment will ensure a lasting legacy to be enjoyed for another 128 years and beyond”.</p><p>“This isn’t just about a stadium upgrade. This is about anchoring an urban renewal project that will see Woolloongabba transformed like South Bank was for Expo 88.</p><p>“The Woolloongabba redevelopment, along with Cross River Rail and the Brisbane Metro, will anchor a major redevelopment of Woolloongabba to maximise the benefit of public investment and deliver more housing including social and affordable housing, more jobs, and better connectivity.”</p>

Labelled the largest urban renewal in Brisbane since South Bank, the government think the time is right for a name change too…

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<p>Plans to return train manufacturing to Queensland have been boosted with a major overseas firm signing a $30-million deal.</p><p>The deal involves Korean company Hyundai Rotem establishing a standalone presence on the Fraser Coast with the purchase of an industrial site and plans to establish a factory to produce sub-components for train car bodies.</p><p>The Hyundai Rotem facility is in addition to the Queensland Train Manufacturing Program site being built at Torbanlea at a facility operated by Downer Group.</p><p>Downer was awarded the Design Build Maintain Contract for the program this year and has partnered with the Hyundai Rotem Corporation for the manufacturing of the 65 new trains.</p><p>Major works are under way at the Torbanlea facility to transform a former pineapple farm into Australia’s newest state-of-the-art train manufacturing facility.</p><p>The government said the Queensland Train Manufacturing Program would support 800 construction and manufacturing jobs.</p><p>Hyundai Rotem will use roll forming to produce the components.</p><p>Roll forming involves the continuous bending of a long strip of sheet metal (typically coiled steel) to make sub-components for train car bodies.</p><p>This kind of component has been made overseas for decades but will now be made on the Fraser Coast, creating 20 jobs.</p><div id="70J85oD3ioYSC9TLl0nN1A"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1c0l1xyKNqo1r6B4HAJc1U/39c5e2c998babfb8b041f96e579993bf/torbanlea-train-manufacturing-fa.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/1c0l1xyKNqo1r6B4HAJc1U/39c5e2c998babfb8b041f96e579993bf/torbanlea-train-manufacturing-fa.jpeg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ A render of the manufacturing facility under construction near Maryborough on Queensland’s Fraser Coast.<br><br></span></div></div><p>Once the first train has been built in 2026, it will begin testing before entering passenger services in 2027.</p><p>All 65 trains are expected to be in service in time for the Brisbane 2032 Olympic and Paralympic Games while helping to run additional services that will be delivered by the Cross River Rail and Logan and Gold Coast Faster Rail projects.</p><p>A co-design process was ongoing with the disability sector to inform the design of the new trains to ensure they were compliant, functional, and accessible for all passengers, the government said.</p><p>Early works to upgrade local intersections within Torbanlea started in August 2022 ahead of the start of construction on the train manufacturing facility.</p><p>Minister for Transport and Main Roads Mark Bailey said the project would “train a new generation of highly skilled Queensland workers in train manufacturing, which will have long-term benefits to our economy, transport infrastructure and manufacturing industry”.</p>

Queensland’s plans to have locally made trains on the tracks before the Olympics has been boosted by a $30-million commitment…

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<p>A parcel of land larger than the Melbourne CBD will be transformed into a multi-industrial precinct under plans revealed by BlueScope for a site next to its Port Kembla steelworks site.</p><p>Unveiled this week, the masterplan will guide the development of 200ha of excess land in the Wollongong suburb about 95km south-west of Sydney.</p><p>Eighteen months in the making, BlueScope said its plans had the potential to create 30,000 jobs in emerging industries such as clean energy and defence.</p><p>The company said it believed the precinct could employ as many people as it did during the heyday of the steelworks.</p><p>BlueScope managing director and chief executive Mark Vassella said it would be “one of the most significant land transformation and job creation opportunities in Australia”.</p><p>BlueScope said it had engaged Denmark’s Bjarke Ingels Group (BIG), a “global leader in urban design and architecture of industrial sites”, to craft a “new urban model” for the land.</p><div id="carousel-root" data-reactroot=""><image-carousel-remove-button><div class="rm-carousel-wrapper"><button id="rm-carousel" class="rm-carousel-btn">Delete</button></div></image-carousel-remove-button><div class="slider-wrap"><image-carousel><div class="slider-el"><img style="height: 100%;" title="1.jpg" src="http://images.ctfassets.net/8pr762qjocl3/1SMqFqSLbHjSMG1SVgk8RJ/66b7e7e2dda9839359d1dd08e07e532b/1.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/1SMqFqSLbHjSMG1SVgk8RJ/66b7e7e2dda9839359d1dd08e07e532b/1.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="3.jpg" src="http://images.ctfassets.net/8pr762qjocl3/6iyYFHA48J8Uf1675zD8ps/a8a2970bca0c16d8a423fc1a6daaf1e4/3.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/6iyYFHA48J8Uf1675zD8ps/a8a2970bca0c16d8a423fc1a6daaf1e4/3.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="4.jpg" src="http://images.ctfassets.net/8pr762qjocl3/4qmuqIB0IDftUKr4d7cm3H/4019a6a243e36bfbe3b48b59064e1225/4.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/4qmuqIB0IDftUKr4d7cm3H/4019a6a243e36bfbe3b48b59064e1225/4.jpg" data-mce-style="height: 100%;"></div></image-carousel></div></div><p><br>The project met BlueScope’s First Nation’s Framework, recognising Country and aiming to retain more than 60 per cent of the transformed site as green and blue space, and open parklands, the company said.</p><p>“As we approach our 100-year anniversary of steelmaking in Port Kembla, we are acutely aware of the cultural and historical significance of this site, one of the largest manufacturing sites in Australia,” Vassella said.</p><p>“Our plan is to retain approximately 70 per cent of the existing building floorspace to preserve this important steelmaking heritage.</p><p>“Our urban planners BIG often remind us of the global scale of this opportunity.</p><p>“They also remind us how unique the opportunity is given we own the land, it’s just over an hour from Sydney, is adjacent to Australia’s largest manufacturing site, has access to a deep sea port and the local transport infrastructure includes a six-lane highway and four train stations within its boundary.”</p><div id="carousel-root" data-reactroot=""><image-carousel-remove-button><div class="rm-carousel-wrapper"><button id="rm-carousel" class="rm-carousel-btn">Delete</button></div></image-carousel-remove-button><div class="slider-wrap"><image-carousel><div class="slider-el"><img style="height: 100%;" title="2.jpg" src="http://images.ctfassets.net/8pr762qjocl3/1olTdgoPUSVCHgllDPPUd1/d3adf8f80fa1924769c08d980e4a8d6f/2.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/1olTdgoPUSVCHgllDPPUd1/d3adf8f80fa1924769c08d980e4a8d6f/2.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="4.jpg" src="http://images.ctfassets.net/8pr762qjocl3/4qmuqIB0IDftUKr4d7cm3H/4019a6a243e36bfbe3b48b59064e1225/4.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/4qmuqIB0IDftUKr4d7cm3H/4019a6a243e36bfbe3b48b59064e1225/4.jpg" data-mce-style="height: 100%;"></div></image-carousel></div></div><p><br>Vassella said preliminary economic modelling by Deloitte suggested the masterplan could generate an additional 20,000 jobs and contribute up to $5 billion annually to the gross regional product.</p><p>A so-called ‘super TAFE’ is also part of plans after a memorandum of understanding was signed between the steelmaker and TAFE NSW.</p><p>Under the MoU, signed by TAFE NSW managing director Steve Brady and BlueScope’s Vassella, the two parties will during the next six months explore the establishment of a flagship training campus on the site.</p><p>“We are delighted to be working with TAFE NSW to explore this opportunity. They share our vision for ensuring continued growth in opportunities that support people looking to build their careers in the Illawarra region,” Vassella said.</p><p>He said that now the masterplan had been revealed “the real work starts”.</p><p>“This includes further community consultation, conducting commercial analysis on how this long-term development play could be structured and financed, as well as addressing streamlined planning approval frameworks, and determining infrastructure requirements,” Vassella said.</p>

BlueScope says its plans for the land at Port Kembla have the potential to return the city to its industrial heyday, creating 30,000 jobs…

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<p>Those behind the planned giga-project in Saudi Arabia have revealed another aspect to the project, Epicon.</p><p>The Saudis said the new upscale coastal destination featuring two pointed skyscrapers would be built within the sustainable regional development in northwest Saudi Arabia.</p><p>Positioned along the Gulf of Aqaba, Epicon “aims to redefine hospitality and architecture standards” within the wider NEOM mega-city, envisioned as a high-tech, sustainable urban and economic hub in the north-west of the country.</p><p>The Epicon project compromises two towers—225m and 275m—housing a premium 41-key hotel and 14 suites and apartments.</p><div id="1efLUAVP2tNck0MtGJ6Y8D"><picture><img src="//images.ctfassets.net/8pr762qjocl3/5BMvv4qSmImgm1RyWxHZl6/56bec0f19bb67cf7b30042ed8eb7d8f5/neom-unveils-epicon-towers_2.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/5BMvv4qSmImgm1RyWxHZl6/56bec0f19bb67cf7b30042ed8eb7d8f5/neom-unveils-epicon-towers_2.jpeg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ A render of Epicon on the Gulf of Aqaba, at the northern tip of the Red Sea.<br><br></span></div></div><p>Nearby, the Epicon resort will include 120 rooms and 45 beach villas. According to NEOM it is “designed to be a haven from everyday life, providing experiences varying from high-end cuisine to water sports”.</p><p>“The goal of Epicon is to redefine high-end living by seamlessly merging cutting-edge design and first-rate services. The project boasts spa-tailored wellness treatments and beachside relaxation. In fact, it offers complete visitor and resident care, fostering a luxury experience,” a spokesperson said.</p><p>Facilities include a gym, library, workstations, pools, and lounges and panoramic views of NEOM's shoreline.</p><p>The launch of Epicon coincided with the declaration of Leyja, another ecotourism destination in NEOM; both “align with the Kingdom's larger goals to enhance its ecotourism range”.</p><div id="7334UIyyKddbngyBo7malL"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2J6CDpsnXa0MOqVd1zfGxu/2ed59af36c6405afbbd41d87f688e22c/neom-unveils-epicon-towers_4.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2J6CDpsnXa0MOqVd1zfGxu/2ed59af36c6405afbbd41d87f688e22c/neom-unveils-epicon-towers_4.jpeg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The resort would be part of the NEOM giga-project in Saudi Arabia.<br><br></span></div></div><p>NEOM is planned as a cross-border city development project in Saudi Arabia. Its intentions are to be a futuristic, sustainable city in the northwest region of the kingdom in order to drive innovation and technology, the Saudis say.</p><p>In October, Zaha Hadid Architects unveiled plans for a striking 330m skyscraper within the Trojena ski resort, also in the NEOM development.</p><p>Trojena would be the first major outdoor skiing destination in the Arabian Peninsula, and is planned for a site about 50km from the Gulf of Aqaba coast.</p><p>The crystal-like skyscraper would be located on a mountain overlooking a central artificial lake.</p><p>NEOM first made headlines with the unveiling of The Line, a 170km-long city in the precinct, in January, 2021.</p><p>Other projects planned for NEOM include the residential Neom Bay; Neom Bay Airport; Oxagon, a floating industrial complex in the shape of an octagon covering about 250sq km; and Sindalah, a luxury resort complex off the city coast with an 86-berth marina and three luxury hotels.</p><div id="aI0R8mSf1RqSBm1Sjky1A"><picture><img src="//images.ctfassets.net/8pr762qjocl3/0VUjGzT6SW8PPoBb4pJpS/4d0099d5b0ed89383190f3fbf0c0102f/neom-unveils-epicon-towers_5.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/0VUjGzT6SW8PPoBb4pJpS/4d0099d5b0ed89383190f3fbf0c0102f/neom-unveils-epicon-towers_5.jpeg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ A render of a beachside villa at Epcon.<br><br><span style="font-family: 'Droid Regular'; font-size: 18px;" data-mce-style="font-family: 'Droid Regular'; font-size: 18px;"><span class="mce-preview-object mce-object-iframe" contenteditable="false" data-mce-object="iframe" data-mce-p-allowfullscreen="allowfullscreen" data-mce-p-src="https://www.youtube.com/embed/mSQfApUwqBo"><iframe src="https://www.youtube.com/embed/mSQfApUwqBo" width="560" height="314" frameborder="0" allowfullscreen="allowfullscreen" data-mce-src="https://www.youtube.com/embed/mSQfApUwqBo"></iframe><span class="mce-shim"></span></span></span><br></span></div></div>

A resort on the Gulf of Aqaba comprising two towers up to 275m plus beachside villas are the latest plans for the Saudi giga-project…

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<p>Sydney and Melbourne housing prices will fall in what a national researcher has tipped will be a mixed 2024 national housing market.</p><p>According to forecasts by SQM Research in its annual update, <em>Christopher’s Housing Boom and Bust Report 2024</em>, the base case forecast is for average national home prices to change between -1 per cent to 3 cent.</p><p>Perth and Brisbane are the only cities expected to record price rises, driven by a tailwind of a recovering Chinese economy, which is anticipated to have strong demand for base commodities such as iron ore.&nbsp;&nbsp;</p><p>However, for much of the rest of Australia, the sharp deterioration of housing affordability, driven by ongoing interest rate rises that are now, in SQM’s opinion, at restrictive levels, plus an anticipated slower economy, will mean a modest to moderate correction in homes prices in Sydney, Melbourne, Canberra and Hobart.</p><p>Adelaide and Darwin are anticipated to remain steady or record a minor rise/correction. &nbsp;</p><p>The rise in interest rates during 2022 and 2023, and possibly into 2024 will start to bite homeowners and would-be home buyers alike.</p><p>SQM Research expects a rise in distressed selling activity during next year and only the most cashed up willing to enter the market.</p><p>Sydney’s housing market is expected to record a moderate fall in homes prices of between 4 per cent to 0 per cent.</p><p>It is expected Sydney’s middle to outer rings for free-standing houses will record a greater correction.</p><p>Sydney units are expected to outperform, and Sydney’s inner ring is still expected to record price rises as top end property remains in demand from foreign investors.</p><p>This year there has been a significant deterioration in housing affordability for Sydney.</p><p>Typical mortgage repayments to household incomes have reached generational new highs and based on the current Sydney median home price ($1,100,000) have put housing out of reach for the majority of Sydney working adults.</p><p>Melbourne is also forecast to enter a modest correction with prices tipped to fall by up to 3 per cent.</p><p>Like Sydney, Melbourne’s top end of the market is still expected to record price rises and units too are also expected to outperform.&nbsp;</p><div id="4cmtq6ItFcZkJTI8NHZSqh"><picture><img src="//images.ctfassets.net/8pr762qjocl3/7sZlk6IkY6Sl8X5JsNMvX9/42e45ecf617aa979fac13d3d589d54a3/2.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/7sZlk6IkY6Sl8X5JsNMvX9/42e45ecf617aa979fac13d3d589d54a3/2.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Like Sydney, the Victorian capital is also forecast to enter a modest correction in 2024.<br><br></span></div></div><p>Canberra is forecasted to record the largest falls out of all cities with price falls anticipated of between 4 per cent to 8 per cent.</p><p>The combination of slower anticipated federal government spending plus an expected strong rise in home completions—one of the very few cities recording accelerated supply.</p><p>The forecasts were based on two key contingencies, SQM said:</p><ul><li><p>The rate of net short term and longer-term migration is expected to peak next year and then ease so that total population growth for 2024 falls back to circa 460,000 people.</p></li><li><p>&nbsp;The rate of inflation is expected to continue to ease to back to between 3 per cent to 4 per cent &nbsp;by the end of 2024.&nbsp;</p></li></ul><p>If Australia’s migration rates fail to slow as anticipated, this would likely mean SQM’s base case forecasts of a mild correction would not materialise, the report daid.</p><p>On the other hand, housing price falls could be more acute if inflation were to accelerate to the point of forcing the Reserve Bank of Australia to lift the cash rate beyond 5 per cent.</p><p>To this end, SQM has built out a scenario based on a second energy crisis, driven by current events in the Middle East.</p><p>Such a scenario would force the RBA to lift interest rates more aggressively during 2024 and very likely trigger a sharp recession for Australia.&nbsp;</p><div id="35WSeMCtMCbttekmtAELgo"><picture><img src="//images.ctfassets.net/8pr762qjocl3/5vf0JwWj24YkfS6sapfGfa/045d75f1e1ab0cabbed0c04d40a5a8f3/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/5vf0JwWj24YkfS6sapfGfa/045d75f1e1ab0cabbed0c04d40a5a8f3/1.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ There is no good news for renters next year, according to SQM.<br><br></span></div></div><h2>Rent rises tipped to continue</h2><p><br>Asking rents around the nation are expected to rise between 7 per cent to 10 per cent with the Perth tipped to record the largest increase of 12 per cent to 15 per cent.</p><p>While SQM expects an easing in the population growth to 460,000 people, it also expects a sharp decline in home completions over 2024 to 153,000 homes.</p><p>Current building approval numbers plus homes under current construction as published by the Australian Bureau of Statistics strongly suggest the nation will have the lowest completion rate since 2012.&nbsp;</p><p>This ongoing imbalance between demand and supply will continue to put upward pressure on rents around the country.&nbsp;</p><p>&nbsp;“Another year of anticipated strong population expansion (albeit slower than 2023), plus an ongoing shortage of new homes, will limit the fall in housing prices to single percentage digits and the price falls should just be limited to mainly Sydney, Melbourne, Canberra and Hobart,” SQM Research managing director Louis Christopher said.</p><p>“Nevertheless, with expected slowing employment growth and the corresponding rise in unemployment, tipped to be towards 5 per cent by the year end 2024, this negative will more than offset another year of strong migration.&nbsp;</p><p>“The interests rate rises of 2022, 2023 and possibly 2024 will finally start to bite homeowners and would-be homebuyers alike. Distressed selling activity is expected to jump, especially in NSW where we are already starting to see a new trend upwards in that data set.&nbsp;</p><p>“These are the key assumptions behind our base case scenario. If I am wrong and the housing market has another strong year, it will be because employment growth has continued to be firm and/or migration has once again grown more quickly than expected and homeowners once again have managed to withstand the higher lending rate environment.&nbsp;</p><p>“Perth and Brisbane are still very likely to record price rises based on super tight rental conditions, a better-than-expected global commodities market and minimal exposure to the financial services sector (where we believe there maybe be significant job losses).”</p>

Next year will be one of mixed fortunes for Australia’s property markets with the two biggest cities predicted to fare the worst…

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<p>Billionaire mining magnate Gina Rinehart has added a second tower to her holdings in Brisbane’s Eagle Street.</p><p>Offloaded by Charter Hall, who held it for about a decade, the premium-grade 20-storey tower at 175 Eagle Street, reportedly sold for about $240 million.</p><p>The tower was completed in 2002 and renovated in 2012 and again in 2018. It comprises 22,258sq m of floorspace, including ground floor retail, 19 floors of office space and a multi-level basement carpark.</p><p>Floorplates are 1159sq m and typically free of columns.</p><div id="YjyCDqO88VTyTJJUwQ2KN"><picture><img src="//images.ctfassets.net/8pr762qjocl3/7jszW2lDjqgX3PyWxcN2io/4bb93c9f4c04ad5dfa94e04351261dd0/175-Eagle-Street-3.jpeg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/7jszW2lDjqgX3PyWxcN2io/4bb93c9f4c04ad5dfa94e04351261dd0/175-Eagle-Street-3.jpeg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Gina Rinehart is the new owner of 175 Eagle Street in Brisbane.<br><br> </span></div></div><p>Anchored by AON Risk Services, it has a high occupancy rate of 94.6 per cent.</p><p>The 3379sq site has views of the Brisbane River and Kangaroo Point.</p><p>It is Rinehart’s second purchase in the blue-ribbon street—nine months ago she paid north of $100 million for 70 Eagle Street, a 14-storey tower acquired from US-based Pembroke, who paid $124 million for it in 2014.</p><h2>Former Spring Hill hotel acquired</h2><p><br>Meanwhile, the Queensland government has added another former hotel to its homeless accommodation solution.</p><p>The former Park Hotel in Spring Hill has now been acquired by the government. It had been leasing the 84-room property since April 2021.</p><div id="2c4PE7LfPNGNQ5zYham2xb"><picture><img src="//images.ctfassets.net/8pr762qjocl3/h3odTFqPXJF9lyS8CkfSB/16c0f1a5ad24daf60398ba06099a02bd/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/h3odTFqPXJF9lyS8CkfSB/16c0f1a5ad24daf60398ba06099a02bd/1.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The government has been leasing the former hotel since 2021. <br><br></span></div></div><p>The government said the purchase means it will now refurbish rooms and communal spaces in the hotel.</p><p>It has been reported the government paid $33.8 million for the property, which will continue to be managed by St Vincent de Paul, which will also provide support services to tenants.</p><p>The property is the latest addition to the state’s expanding portfolio of former hotels, motels and retirement villages across Queensland.</p><p>Earlier this year, a 23-room hotel was acquired while a motor inn in Hamilton was leased for youth accommodation while an apartment complex in Gladstone was transformed into public housing.</p><p>Retirement villages in Clayfield, Rothwell, Toowoomba and the Redlands have also been purchased and leased for social housing.</p><p>“While we have a strong focus on building new properties, we are also supplementing construction with strategic purchases, like this hotel in Spring Hill,” housing minister Meaghan Scanlon said.</p><p>“This helps ensure our housing portfolio continues to grow and evolve and respond to local need.”</p>

The inner-Brisbane purchase comes as the state reveals it has bought another former hotel for homeless accommodation in the capital…

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<p>A DA-approved site opposite Victoria’s 12 Apostles on the Great Ocean Road has sold.</p><p>The site, approved for the 12 Apostles Hot Springs and Resort, has been acquired by Sheargold, a Sydney-based property company specialising in major residential development projects.</p><p>Julian White and Chao Zhang of Stonebridge Property Group, and Andrew Jolliffe and Andrew Jackson from HTL Property managed the sale via an international expressions-of-interest campaign.</p><p>The vendor is a Melbourne-based property consortium, who the agents said were “delighted with the outcome after it obtained the permits for the proposed development and confirmed the presence of thermal hot water almost 1000m below the surface of the ground”. &nbsp;</p><div id="FEgSwRyFjVY5f8GFFqj8o"><picture><img src="//images.ctfassets.net/8pr762qjocl3/62D8xd4H05Z9cvXoY1bzy/ca06b25782bbcc27edee4a442ee7e470/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/62D8xd4H05Z9cvXoY1bzy/ca06b25782bbcc27edee4a442ee7e470/1.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ A render of the spa and resort approved for the site. <br><br></span></div></div><p>While a sale price has not been revealed, <em>The Urban Developer</em> reported in July when <a href="https://www.theurbandeveloper.com/articles/great-ocean-road-12-apostles-hot-spring-resort-port-melbourne-sites-for-sale" target="_blank" rel="noopener" data-mce-href="https://www.theurbandeveloper.com/articles/great-ocean-road-12-apostles-hot-spring-resort-port-melbourne-sites-for-sale">the site came to market</a> that the&nbsp;project has been estimated to be worth about $200 million.</p><p>Approved for the site is a project with a GFA of 4092sq m that includes 3363sq m of state-of-the-art bathing facilities, up to 150 luxury eco-pods for accommodation, a 12-room spa catering to public and resort guests, conference facilities for corporate and private events, multiple food and beverage operations, an amphitheatre and visitor centre, and on-grade carparking.</p><p>Sheargold managing director Michael Sheargold said the acquisition represented “an exciting opportunity for our organisation and team in a globally growing industry”.</p><div id="7gy7CBVNRS7VxcFZaN4pam"><picture><img src="//images.ctfassets.net/8pr762qjocl3/74rfiUBhYj3GBO8eEd2X25/1b1c9200ddc06187c6a6fda1acfdfa75/3.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/74rfiUBhYj3GBO8eEd2X25/1b1c9200ddc06187c6a6fda1acfdfa75/3.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The site is approved for up to 150 luxury eco-pods for accommodation.<br><br></span></div></div><p>Stonebridge Property Group national partner Julian White said the 12 Apostles was among the most visited regional tourism destination in Australia, however, there “is a severe lack of accommodation or associated leisure activities close by”.</p><p>“The market recognised this, with a highly competitive campaign that had more than 250 enquiries from local, interstate and international markets, keen to explore the opportunity.”</p><div id="2Dmo48D4s9pOq7bjogyzg7"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2WPIFUejO33TE4K6RneP8t/b26cd04fb8aada87078ee845f09b3c8c/2.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2WPIFUejO33TE4K6RneP8t/b26cd04fb8aada87078ee845f09b3c8c/2.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ More than 250 inquiries were received about the site.</span></div></div>

The project planned for the site on Victoria’s Great Ocean Road has previously been valued at $200 million…

<p>The number of people entering Australia has again skyrocketed, according to new data, with student visa holders making up the vast majority.</p><p>The ABS Overseas Arrivals and Departures report for September said there were 45,090 international student arrivals to Australia, an increase of 9540 students compared to September, 2022.</p><p>This was just 0.5 per cent lower than the pre-Covid levels of the same month in 2019.</p><p>The rapid increase in student arrivals has <a href="https://www.theurbandeveloper.com/articles/student-accommodation-pbsa-role-australia-housing-crisis" data-mce-href="https://www.theurbandeveloper.com/articles/student-accommodation-pbsa-role-australia-housing-crisis">created headaches across the nation</a> as cities struggle to house them, adding to the nation’s housing crisis.</p><p>Among other arrivals, 11,850 people arriving in Australia in September indicated they would remain in the county, an increase of the 36.3 per cent year-on-year. There were 8690 permanent arrivals in September, 2022, and just 2290 in September, 2021.</p><p>Permanent arrivals (settlers) comprise travellers who hold permanent visas, New Zealand citizens who indicate on their passenger card an intention to migrate permanently, and those who are otherwise identified as eligible to settle, not including student visas.</p><p>Total arrivals in September numbered 1.6 million, up 49.6 per cent on last year’s 1.07 million. The previous year, during the pandemic, just 18,850 people arrived in the country.</p><p>However, Australian residents returning long-term declined by 12.6 per cent from 13,270 last year to 11,600 this year.</p><p><strong>Arrivals: international students</strong></p><div id="5FZkGbSTmmSxaboQ4HzaEj"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2gXvVYp1pkAAgKvhG4HFJ7/211510ff9e21e032fe4f99b0cabc4f24/Screen_Shot_2023-11-14_at_11.47.11_am.png" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2gXvVYp1pkAAgKvhG4HFJ7/211510ff9e21e032fe4f99b0cabc4f24/Screen_Shot_2023-11-14_at_11.47.11_am.png"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;"><sup>▲ Includes international student visa holders whether it be for a short-term (less than a year) or long-term (a year or more) duration. (b) English Language Intensive Courses for Overseas Students. Source: ABS</sup><br><br></span></div></div><p>Short-term residents returning continued to climb, up 48.2 per cent to 939,600 from 633,790.</p><p>Long-term Australian resident departures rose 21.2 per cent from 14,790 to 17,930, and short-term departures were up 47.1 per cent to 1,062,530 from last year’s 722,220 as Aussies’ wanderlust hit top gear after the pandemic downturn in overseas travel.</p><p>And in great news for the nation’s tourism industry, overseas visitor numbers climbed with long-term up 26.6 per cent from 43,930 to 55,590; and short-term up 57.5 per cent to 584,620 from 371,850.</p><p>The three leading countries visitors came from were New Zealand, 128,820 trips; China, 59,080; and the US, 36,400.</p>

The number of students arriving from abroad is now just 0.5 per cent below pre-pandemic levels…