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Every capital city has both a CBD and suburban office market. And as you can appreciate, keeping tabs on all the various suburban markets is almost an impossible task for most investors.
But generally speaking, the health (or otherwise) of the CBD office market within each capital city will provide you with a fairly good gauge of the overall office scene around Australia.
Accordingly, this graph will provide you with a clear picture of what has occurred over the past four years.
<img src="/images/stories/langjan20.gif">
As a rule of thumb, office markets are said to the "in balance" when their vacancy rate lies between 5% and 7%.
A vacancy rate within this range provides landlords with consistent rental growth and tenants with the ability to relocate or expand, with few constraints.
As a commercial property investor, what you are seeking is solid predictable growth — rather than wildly frustrating fortunes.
So let's take a quick look at how the vacancy rates for each capital city have fluctuated over the past four years.
<img src="/images/stories/langjan201.png">
As you can see from this table and graph, of all the capital cities, Melbourne remained pretty much within the "balanced" range over this period – despite the global turmoil.
Whereas, once the turmoil struck:
The vacancy rate for Brisbane, Perth and Adelaide overshot that balanced range in the opposite direction.
Sydney's vacancy rate remained around 8% because of its high concentration of financial institutions; and
Canberra's high vacancy rate simply reflected some major government relocations.
Throughout this period, the Melbourne market experienced only a 2.7% spread between its lowest and highest vacancy rate.
Whereas Brisbane and Perth experienced spreads of 10.7% and 8.3%, respectively.
Such wild fluctuations can bring untold joy as long as you're lucky enough to get out before the inevitable collapses, which tend to occur in these rather volatile markets.
That way, you can avoid the accompanying financial heartache.
Bottom line: If you're like most investors, you probably prefer being able to sleep peacefully, knowing that your growth is predictable and secure.
Therefore, unless you are an experienced on-the-ground trader in commercial property, you would be well advised to steer clear of the rather volatile markets in both Brisbane and Perth.
Right now, Melbourne offers you the greatest surety of long-term profit for commercial property — with Sydney expected to respond once the financial turmoil subsides.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
 
 
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What an office vacancy rate means for commercial property investment

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At last Friday's annual general meeting, ANZ chief executive Mike Smith told the ANZ shareholders he was optimistic about the Australian economy due to its proximity to fast-growing Asia.
In China, the economy grew at 9% over the year. And while many commentators talk about the risks to growth in China, I have been there regularly this year and I am confident about the ability of the Chinese government to manage inflationary pressures and managed the shift from export-led growth, to growth based on more internal demand.
By the way, isn't that exactly what you've been reading right here, in some of the recent articles?
You will find that most commentators are focused on the short-term issues in the north Atlantic and have tended to overlook the bigger picture.
During every generation, there is generally a structural change in global economic activity. And right now, you are simply witnessing a shift the world's economic centre of gravity.
The influence of the British Empire was surpassed by American economic dominance after the Second World War. And now that dominance seems to be shifting from the advanced Western economies as a whole  across to a growing group of emerging economies.
China's current growth rate of 9% per annum is closely followed by India, at around 7% per annum. But you cannot ignore other emerging economies like Brazil, Indonesia and Vietnam.
With a population of around 240 million, Indonesia has the world's fourth-largest population. And in terms of overall net worth, it surpassed Australia's economy about five years ago.
Bottom Line: You only need to look at the number (and size) of the purchases of commercial property made by Asian buyers over the past year or so to realise the Australian property market is seen by them as a safe haven.
The sheer volume of Asian funds poised for investment means those investors need to look outside their own countries — simply to balance their portfolios, and spread their risk.
Therefore in 2012, you will hopefully recognise this tidal wave of activity for what it is. And more importantly, realise the positive impact it will have upon commercial property values in Australia.
Now is the time to position yourself to be able to ride that wave, over the next five to six years.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Asian interest makes Australian commercial property a good investment

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All you need is a sprinkling of confidence, with an understanding that things are not as bad as you read in many newspapers.
For some time now, I have been trying to explain how the underlying fundamentals for Australia's economy and commercial property are strong.
And a recent AFR headline, “Recruitment boom bucks the trend” (December 9, 2011, page 41) now confirms that our major law firms are "in the midst of a hiring spree".
However, if you still need some more convincing of Australia's wellbeing, just take a look at these two graphs.
<img src="/images/stories/confidence.gif">
Clearly, two positive aspects emerge:
Our economy is outperforming other major countries; and
Australia has actually surged ahead since the global financial crisis in 2008 – whereas other countries have barely clawed back to where they were.
Despite retailer complaints regularly making headlines, overall household spending forms a major part of that growth. In fact, consumer spending grew by 1.2% in the quarter (and 3.8% over the year) to September.
Furthermore, incomes are growing, along with a record terms of trade. Plus, corporate profits surged 5.7% for the quarter — climbing to 10.7% for the year.
Moreover, business investment is up 12.9% for the quarter — representing a 22.7% increase for the 12 months to September.
Unfortunately, you can't cajole (nor control) a country's level of confidence, because it is a very fragile commodity.
However, the Westpac-Melbourne Institute Consumer Sentiment Index and the NAB monthly business survey are both showing a general improvement in confidence.
Bottom Line: It should only take a little “think time” over our extended summer break for the penny to drop. And when it does, people will quickly begin to raid that pile of savings they've been squirreling away.
I hope the latest interest rate reduction will provide the encouragement needed for serious investors to realise that now is the time to step back into the commercial property market.
And just make sure you do so, before this rare opportunity dawns upon everyone else.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
 
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Now is the time to invest in commercial property

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Last week, The Australian newspaper invited three commercial property experts to respond to the following question: If China's growth story begins to peter out, what will be the impact on Australia's commercial property market?
Those experts included Greg Marr (managing director of DTZ), Tony Crabb (research head of Savills), together with me (as chief executive of Properly Edge Australia).
You can read all three responses, which appeared in Saturday's Weekend Australian. What I've included here below is my contribution to that analysis.
Don’t be misled by the doom-and-gloom merchants peddling a story along the following lines.
"The European crisis is causing sluggish recovery for the US. And together, they are adversely affecting China — as is shown by its annual growth declining from 12.5% per annum in 2008 to its current level of around 9% per annum.
"As Australia depends heavily on China, our economy and therefore commercial property market are at risk. Furthermore, banks are likely to be a squeezed for funds to lend."
Australia's only faint connection with the North Atlantic problems is one of mindset — being when stock markets fall, we generally feel far less optimistic. But you actually need to look a little deeper than that.
This has been deliberately orchestrated to regain control of inflation.
In 2008, China's 12.5% per annum growth contained 3% to 4% of exports to Western countries. Today, its still healthy growth of 9% per annum is being driven by its latest five-year plan — focusing upon internal infrastructure and increased domestic demand for its own output.
Fortunately for Australia, China still requires our natural resources in abundance to underpin its massive domestic expansion plans, over the next decade.
Therefore, the likely impact of the current North Atlantic problems on China will be minimal — likewise for the Australian economy and commercial property.
Australian banks' wholesale (offshore) funding needs are determined by the amount they lend and the deposits they can arise from the domestic market.
Since 2008, the banks have reduced their dependence upon offshore funding by a third — now providing only 20% of their funding needs. In turn, they have raised (from 40% to 50%) their contribution from domestic deposits.
Therefore, with lower credit growth and increased domestic deposits, banks will need to draw far less upon offshore funding over the next 12 months.
Whenever people are confused, they tend to do nothing. But don't allow yourself to be distracted by short-term thinking.
Australia's underlying fundamentals for commercial property and the economy are strong. Supply of office and industrial space is quickly falling through strong demand.
And now is the time to you set yourself up for the next five to six years of stable growth.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Why commercial property investors don't need to worry about China

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According to the Australian Retailers Association, its members are projecting $39.5 billion in sales from mid-November until Christmas — reflecting an overall increase of just 2% on last year.
Many shoppers still remain extremely hesitant, despite the RBA's recent interest rate reduction.
However, with household savings at record levels, people may simply be holding back on their main splurge until the post-Christmas sales.
Either way, the retail sector is delicately poised at the moment.
Most fashion and other specialty shops are finding things really tough, although restaurants, wine bars and other "entertainment" outlets have been reporting steady business.
Sure, online shopping has grabbed the headlines over the past 12 months.
However, it seems there is also a growing number of people using larger regional shopping malls to carry out their initial research. And then they return to their neighbourhood strip centres — where they can browse in relative peace and receive far more personal attention.
If they are going to part with their hard-earned savings, shoppers appear to want (and now expect) some old-fashioned service.
In other words, shopping now needs to offer an enjoyable experience — and not merely be an endless selection of basically the same products, simply in different stores.
For many, discounting alone will no longer motivate them to buy. Most shoppers are now seeking out friendly interaction, together with genuine personal service.
Originally, discounting destroyed store loyalty, as people focused on obtaining that product as cheaply as possible, from whoever was offering them the best price.
But slowly, the wheel is turning mainly because people are feeling rather "discounted out".
Don't misunderstand – everyone still loves a bargain. But this now seems to be mainly related to generic fashion items.
For anything a little more intimate, and portraying your personality, you will find shoppers gravitating towards stores providing them with one-on-one guidance in making their final choice.
Bottom Line: While this emerging trend is certainly interesting, as a commercial property investor, you will find it almost impossible to pick between the good and bad specialty traders when choosing who will be the stronger tenant over the next three to five years.
As such, you should stick with the "entertainment" group for your tenants if you do wish to invest in retail property at the moment.
Alternatively, seek out shops with quasi-retailers, like banks, travel agents, solicitors, accountants or real estate agents — all of whom are far less dependent upon passing traffic.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Entertainment, rather than fashion, is a safer commercial property investment

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The underlying fundamentals for Australia are strong. All that's needed is a lift in the general confidence level for our economy to really take off.
Therefore, the trick is not to be caught by surprise when it does!
Australia's "recession pundits" fail to realise this only happens when planned business investment falls dramatically. But currently, miners have around $430 billion already in the pipeline.
And the rest of the business community has around $470 billion in planned investment over the next 18 months.
Moreover, China's current 9.5% per annum growth in GDP is principally being driven by domestic demand, whereas its 12% per annum figure for 2007-08 contained 3% to 4% of exports to Western countries.
Our banks have reduced their dependence upon offshore funding by a third since 2008. And they have also raised (by 25%) their contribution from domestic deposits.
Clearly, the increased level of available cash savings held by households (now at $516 billion) and businesses ($166 billion) has been adversely affecting day-to-day spending. But don't allow your personal investment decisions to be constrained by short-term thinking.
Understand that these "savings" were accumulated on a weekly or monthly basis. But once people flick on the "confidence" switch, all those funds will then be spent as massive lump sums.
Fortunately for Australia, the end of every year comes with a summer break of about a month before everything gets back into full swing.
During this time-off period, people will have the chance to clear their heads of what has been a rather messy 2011.
Bottom Line: Provided Europe makes it through to Christmas with no further surprises, Australians will return from their holidays mentally refreshed and ready to move forward strongly in 2012.
Therefore, make sure you avoid being caught up in the clamour of the New Year — and try to secure some good commercial properties this side of Christmas.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Next year will be good for commercial property investment

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The Queensland economy has been slow to recover from all its natural disasters. But its industrial property sector has been quick out of the blocks.
The boom in Queensland gas now has Brisbane with the lowest vacancy rate for industrial property.
Next comes Melbourne — with Sydney well back in third place, according to a recent survey by Knight Frank.
And increasing demand will put further upwards pressure on rentals, thereby encouraging more developers into the market.
While the Brisbane market is gas-driven, Melbourne (which is Australia's largest industrial market) enjoys a much wider tenant profile.
As such, its increase in speculative A-grade buildings has been readily absorbed over the past 12 months.
Sydney, however, his languished somewhat — with a cautious market showing an even split in the take-up, between A- and B-grade facilities.
Bottom Line: Industrial property is poised for some good rental and capital growth over the next few years, as yields start to firm.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
 
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Outlook good for industrial property

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The commercial property market is driven mainly by supply and demand, especially offices.
And therefore, with falling vacancies, positive net absorption and few new projects in the pipeline, this means a looming shortage of office space around Australia — with rentals poised to rise sharply.
A recent study by Savills shows a 22% decline in available full floors nationally — currently sitting at 591 floors in September this year.
With the surge in the mining sector, Perth had a 50% fall to 65 available prime floors over the past two years.
And in Brisbane the number of prime floors available has declined 32% (to 99 floors) over the past 15 months, as its mining sector also regains momentum.
The Melbourne office vacancy rate has remained consistently low (currently at around 5.3%) due to a more even balance in its tenancy mix. Plus, most of the new Docklands projects proceeded with significant pre-commitments.
As such, it has mainly been back-fill space (left by relocating tenants) that has provided the 56 vacant floors within the Melbourne CBD.
Sydney also enjoyed a decline of over 20% in full floors. However, it still has about 260 prime floors available —just under half of the total number of floors available nationally.
Bottom Line: With the lack of any major new construction until around 2013-14, vacancy rates will continue to fall. In turn, this will cause sharp increases in both rentals and capital growth — making commercial property a great performer over the next five years.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Falling vacancies make offices a good commercial investment

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Did you realise that some of the repairs you make to your commercial property are not necessarily deductible against your rental income?
Often, it comes down to something as simple as timing.
As a general rule: Any repairs made to a commercial property held for the purpose of producing assessable income are deductible — so long as they are not deemed to be of a capital nature.
In other words, your repairs must directly relate to "wear and tear". Or they must be as a result of a breakdown or damage caused, in the process of gaining rental income from the property.
Furthermore, your commercial property must continue to be rented on an ongoing basis for you to be able to claim these repairs as deductible. However, the property need not always be occupied — so long as it is being actively marketed for lease.
What are some of the exceptions to you being unable to claim deductions? Broadly speaking, they appear to fall into three categories.
These relate to items requiring immediate attention in order to rectify any defects or damage existing at the time you first acquire a commercial property. Such things may include fixing items of equipment, repairing sections of the carpet or simply repainting walls.
While these repairs may not be deductible against rental income, they can be added to your initial cost base for the purpose of reducing your capital gains tax down the track.
Once again, items of this nature are not immediately deductible. However, you may be able to depreciate a significant portion of them over your period of ownership.
Otherwise, they will also form part of your cost base for the purposes of calculating GST.
Here you're talking about things like complete replacement of the roof, air-conditioning or security system.
Again, these items would be treated as capital in nature and would form part of your cost base. But they can also provide you with some handy structural depreciation.
There is one line of thinking that these "replacements" could become "repairs", if they were spread over two financial years. But it would be best for you to explore that further with your tax lawyer or accountant.
Bottom line: It's always worthwhile to seek professional advice from the outset in order to maximise your opportunity to claim repairs to commercial property as tax-deductible.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Not all repairs on your commercial property investment are tax-deductible

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Commercial property requires a little more thought than residential property. But the rewards are solid, and generally, more predictable.
Simply keep these five aspects in mind when it comes to choosing commercial property.
1. Location
For commercial property, location is more than a simple matter of demographics. Each property type requires its own set of unique attributes.
For instance: retail centres depend upon road access, high foot traffic and a local population of adequate size to support its tenants. Office buildings benefit from nearby freeways or public transport, coupled with support activities nearby.
2. Tenants and leases
When evaluating a commercial property, pay careful attention to the tenancies.
A good mix of stable tenants means are greater likelihood of you collecting rent in the future. Pay careful attention to the length of each tenant's initial lease term, as well.
Having long leases is usually better than having short leases. But you shouldn't have every lease falling due at once — instead you should stagger their expiry dates, to minimise your risk.
3. Have an exit strategy
Property investors typically focus on maximising the return on their equity.
As you own a property for a period of time, you continue to build equity through both increases in the property's value and reducing your mortgage. Over time, your growth rate will stabilise –  indicating that it could be time to find a replacement property.
When buying a Commercial property, my recommendation would be to undertake a formal review every four years.
4. Make allowances for capital expenditure
In marketing commercial property, the stated net income typically excludes capital expenditure like roof replacement, or any other required upgrades. Your due diligence should flag these, and a preventative maintenance program can also help in preserving your future cash flow.
5. Liquidity vs leverage 
Most investors know that leverage (or debt) can help in the hands positive swings in the market and significantly increase your returns. Unfortunately, the use of leverage can also limit the amount of money that they have available for emergencies.
With this in mind, you should also set aside a pool of funds — to help cover up to six months’ worth of interest, if the need should arise down the track.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Five criteria for buying commercial property

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

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After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

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Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

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Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

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Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

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ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

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For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

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Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

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Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

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Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

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Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Chris Lang

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