QUEENSLAND-based developer Devine Property Group, now backed by Leighton Holdings, has shelved plans for a $300 million office building in central Brisbane, citing the economic downturn.

The 37-level, 33,000 square metre office building was to have started construction in the middle of last year, and be complete in 2011. However evidence is emerging that the once-darling Brisbane CBD office market is oversupplied, meaning the project could be deferred for a long period, or shelved completely.

MELBOURNE builder Grocon is expected to unveil itself as the owner of two prominent city development sites, one in Melbourne and one in Sydney.

Grocon is expected to confirm it will pay between $35 million and $40 million for the former "shop of shops" experiment at 171 Collins Street, in the Melbourne CBD. That site is earmarked for a controversial 17-level, $260 million office building which needed to be approved by the Victorian Civil and Administrative Tribunal last year.

VCAT's approval ended a long-serving Melbourne CBD planning arrangement, whereby buildings around the Swanston Street core would be height restricted.