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1. Lack of research
Most investors fail to properly research the market and understand the relationship each sector (office, retail and industrial) has with the local economy, nearby competition and the marketplace itself.
2. Poor analysis
Many investors fail to thoroughly analyse and research their chosen properties as far as the overall economics, calibre of the tenant and any related risks that may be involved.
3. Lack of commitment
Investing in commercial property requires a reasonable degree of hands-on involvement. Some investors make the mistake of believing they can be absentee landlords. You at least need to be involved at a strategic level.
4. Over-borrowing
Negative gearing is fine. But you still need to start with sufficient equity to ensure that your investment is not over-leveraged. Always keep some funds aside for unforeseen issues that may arise.
5. Lack of understanding
The ownership of Commercial property needs a basic understanding of things like tenancy law, building construction, how to add value, recognising market trends and so on. All of these can be very easily addressed.
6. Price vs. value
Some beginners tend to believe a cheap price means good value and a sound investment. Instead, you need to look behind what is being presented to discover the true underlying value.
7. Over-estimating your skills
To be a really successful commercial investor, you need to build up a trusted team around you — to provide valuable input in the areas of
<ul>
<li>analysis and due-diligence,</li>
<li>negotiating the purchase,</li>
<li>vetting the documentation,</li>
<li>ongoing property management,</li>
<li>determining the time to sell</li>
</ul>
8. Lack of diversity
After you've purchased your first property, you need to widen your perspective — both geographically, and across the various sectors of commercial property. Never simply have all your eggs in one basket.
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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Eight reasons investors can fail when investing in commercial property

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According to BlueScope Steel business, governments, industry associations and unions need to share responsibility for its recent decision to reduce (by 50%) Port Kembla's production capacity.
However, this attempt to distribute blame serves only to deflect attention from the more fundamental (and structural) changes occurring within the manufacturing sector as a whole.
Within his new book The Next Convergence, Nobel laureate economist Michael Spence makes some telling forecasts.
In his view, developing economies like China, India and Brazil (which house about 60% of the world's population) will reach “advanced status” by 2050-60.
And the current problems facing the West — excess debt, over-consumption and poor banking practices — are not merely a cyclical aberration.
Rather, they reflect permanent structural changes resulting from globalisation and technology — which are providing a shift in competitive advantage towards these developing countries.
However, as Alan Mitchell pointed out in a recent AFR article: "It is the resources sector that is allowing Australia to profit handsomely from the industrial revolution in Asia. And it is the services sector that employs 80% of the workforce and produces 80% of our gross domestic product."
Both these sectors employ a far greater proportion of uni graduates than does the manufacturing sector. And it is the resource and knowledge-based sectors that hold the key to Australia's competitive advantage going forward.
Clearly the growth of mining and the reluctance by consumers to spend are both adversely affecting manufacturers. And the Australian dollar is also likely to remain high for the foreseeable future.
Bottom line: It's not all bad news!
This shift in resources from the unprofitable manufacturing to mining allows us to capitalise on Asia's extraordinary growth. Plus, higher savings levels means that households will be better cope with any future global crises — as well as avoiding further rates rises, and an even stronger dollar.
Furthermore, the resultant growth in the service sector will also need to be accommodated — creating increased demand for office space within our capital cities.
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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As manufacturing dwindles, office a better commercial investment

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Many investors just simply fall in love with retail property. This is probably because of familiarity — as it tends to influence so much of our daily lives.
Therefore, after investing in residential property for a while, you find people will gravitate naturally towards retail properly.
To them, it seems to be the next logical step. But is that actually the case?
Let's talk about the weather!
Surely, that only affects rural property — doesn't it? Well, just ask struggling retailers, and they'll tell you otherwise.
You see, in the run up to summer clothing retailers will be holding their breath. Any onset of wet weather will greatly affect the sale of thongs, board shorts and bikinis. And Coca-Cola blamed the fall in its soft-drink sales upon last summer's heavy rains.
Interestingly though, rain also tends to drive people indoors to regional shopping centres — but mostly to browse and eat, rather than buy specialty items.
Cinemas will also benefit from poor weather conditions, whereas, tourist and outdoor entertainment operators find the going tough.
What about interest rates?
The residential sector will always suffer first (and the most), whenever interest rates are on the rise. But as people need to spend more on their mortgage payments, they have less to spend on discretionary retail items. This is particularly when <a target="_blank" href="/news">they also decided to boost their savings to near-record levels</a>.
In this rising interest-rate sequence, industrial property will tend to follow retail — and begin to slow about six to nine months afterwards.
This is because Australia's industrial property is predominantly occupied by "distributors", rather than manufacturers. And these distributors are mainly supplying those struggling retailers.
So that only leaves offices!
According to an 80-year study by BIS Shrapnel, there appears to be little or no correlation between rising interest rates and the office sector.
Therefore, the rise and fall for offices is dictated by the prevailing supply and demand within the sector. And traditionally, that has tended to span a 16- to 18-year cycle.
Bottom Line: If you understand how to read the signs and can anticipate the cycles, you need not be caught out.
But clearly, the retail sector is delicately poised at the moment, whereas, offices are currently heading along a predictable upward path.
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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Offices a more stable commercial investment than retail

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Exactly why have industrial companies around the world been slow to recover? And why did everything look so promising and then suddenly seem to grind to a halt?
Perhaps some insight into this question was provided by the IMF's recent World Economic Outlook.
According to Oliver Blanchard (IMF chief economist), there are the dual influences of a slowdown in advanced Western economies and the overall financial uncertainty.
During the GFC, companies allowed their inventories to run down. Then, with a hint of global recovery, those same companies began replacing their depleted inventory levels.
As you would expect, production climbed until those inventories had been restored. At which point, you saw production return to more normal levels – when wider business activity was expected to take over from the various government stimulus packages, as it usually did during previous downturns.
But this simply hasn't happen – especially in Europe, the UK and US. Therefore, the first part of the problem relates to there being virtually no transition from government stimulus to private demand.
Furthermore, China has chosen to turn its focus away from these weakened northern economies and towards building its own domestic demand. This has effectively closed the major export market for the large US manufacturing sector, simply making the global problem even harder to solve.
Bottom Line: Fortunately for Australia, China still requires our natural resources in abundance to underpin its massive domestic expansion plans over the next decade.
And as I've stated in various articles over the past month or so, it won't be too long before you'll see the influence of this begin to flow through the rest of the Australian economy, including commercial property.
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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China's demand for natural resources will underpin Australia's commercial property recovery

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
In September <a target="_blank" href="https://www.propertyobserver.com.au/commercial/what-green-ratings-mean-for-commercial-property/2011081651174">I briefly explained to you the NABERS "green rating" system</a>, as it relates to commercial property.
Recent research (undertaken by the universities of Western Sydney and Maastricht in the Netherlands) has been released by the Australian Property Institute and Property Funds Association of Australia, under the title of Building Better Returns.
The report reveals that a five-star NABERS Energy-rated building would provide a 9% value premium overall, compared with buildings without any ranking.
Interestingly, there was no value premium found for office buildings below a three-star NABERS rating. In fact, rentals within these lower-rated buildings appear to be discounted by between 6% and 9%, compared with 5-star alternatives.
But that's not all bad news for landlords — because when times get tough, tenants tend to gravitate towards cheaper space.
Plus, with very few new five-star offerings currently in the pipeline, these lesser-rated buildings will experience significant rental growth over the next three to four years.
Bottom Line: If you do your homework, seek good professional advice and "cut your cloth" to fit within your budget, you can still make some serious gains 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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Green-star ratings can increase commercial rents

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You know, I'm always intrigued how many investors place little or no importance upon the skills required to put together a top property deal.
They will spend plenty of time researching the market and arranging finance but will often get emotionally involved and want to conclude the negotiating phase as soon as possible.
1. Remember, it's just a deal
Therefore, never allow yourself to become emotionally attached to whatever you're negotiating for. You need to care — not that much!
Otherwise, you'll end up over-paying for that property.
2. Information is the key
The more you know about the other party's needs, wants and aspirations, the greater your strategic advantage becomes. And the secret is to discover all of this before the formal negotiation actually begins.
3. You always have some degree of power
Power is very much based on perception. And simply creating the illusion of having other options will always make whatever you're proposing seem far more appealing. But there are several other aspects of power you can easily master as well.
4. Gain from their investment
The more you can have the other party make as an investment of their time, money or effort into the deal, the more unlikely they are to walk away from your final proposal when the time comes for you to make it.
5. Time can change everything
Most beginners tend to treat negotiating as an "event". However, the pros realise that it is very much a "process".
And the closer you can move the other party towards their deadline, the larger will be the concessions you start receiving from them.
Bottom Line: You need to be able to treat negotiating is a game — a very serious game! But a game nonetheless, with its own set of rules, which you can very quickly learn.
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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Six tips to negotiating a commercial property deal

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The best-looking property could actually represent the worst real estate investment you've ever made.
Remember that commercial real estate investing is all about the deal, the terms and the return on investment. Here are some tips for successful commercial real estate investing.
TIP #1: Be an investor and not merely of an accumulator of commercial properties.
The reason you make investments is to produce an income or a profit. So if you buy a property that produces little or no profit, you basically just acquired a property (instead of making an investment).
TIP #2: Understand that every commercial property has a lifetime.
One of the biggest mistakes you can make as an investor is to ignore the fact that over time, you will need to spend money on the upkeep of the building. The building may need a new roof or the electrical system may need to be updated.
Every building goes through these phases, some more so than others. Therefore, make sure you have a long-term plan to handle such repairs.
TIP #3: Focus on one commercial investment type at a time.
Especially when you're first starting out, you should focus on one type of investment: offices, shops, warehouses, or whatever.
Each deal needs and deserves your undivided attention. It's better to be master of one than average over many. And who wants average-performing properties anyway?
TIP #4: Get a mentor so you can learn from his or her mistakes.
Mentors can save you from making costly mistakes; identify when you've missed due diligence items; and connect you with resources that you otherwise wouldn't have immediate access to.
TIP #5: Determine whether you and your assets are adequately protected.
Unfortunately, lawsuits can occur, therefore, you need to do everything you can to protect yourself. So ask yourself the following questions:
How is your property protected?
What do you have at stake, if you lose a lawsuit?
Is your personal property (for example, your home) protected?
Are your other investments totally separate from each other so that one lawsuit doesn't affect the other investments?
Don't try to guess, when it comes to the answers to these questions. Talk to a lawyer to ensure that you're protected if you were ever to be sued.
BONUS TIP: In a partnership or syndicate, finance the deal using a non-recourse loan.
Non-recourse means that you aren't personally guaranteeing the loan. This gives you two distinct advantages: it allows you to be taken off the loan if the partnership goes sour. And, if the property were to fail, it won't be tied to you personally.
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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Six tips for smart commercial investing

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Investing in commercial property is not rocket science.
Nonetheless, there are certain key steps you do need to follow. And those involve you in making a number of simple (yet vital) decisions.
DECISION #1: Your goals for the long and short term? 
In other words, are you seeking income or capital growth – or both? Maybe you are after some good tax savings – through negative gearing or depreciation?
DECISION #2: The sleep test
You need to establish your comfort level as far as the amount you will borrow. For some people 80% is fine; for others, 50% is all they can live with. So you need to determine your "threshold of insomnia".
DECISION #3: Your overall portfolio mix
Do you intend to focus on just one sector in the commercial property market – like retail? Or do you prefer a spread across the office and industrial sectors as well? Having some diversity will help you smooth out any ups and downs that may occur along the way.
DECISION #4 Go it alone, or join with others
Not many people starting out are able to jump straight into the market and buy a commercial property for more than $1 million. Therefore, you can step above the competition by joining with another 12 to 15 like-minded investors in a private syndicate to buy something in the $2 million to $5 million range, where you obtain better value for your money.
DECISION #5: Choosing your team of consultants
As you'll appreciate, simply being able to move quickly can snare you some of the best deals. Therefore, you need to have a trusted team of consultants ready to help you with assessing value; putting the deal together; reviewing the contracts; arranging finance; undertaking the due diligence and so on.
Bottom Line: All you need to do is quickly grasp the various ins and outs of commercial property so that you, too, can start reaping the enormous rewards available.
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 key decisions to help your commercial property success

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The market for industrial property in Melbourne has remained strong over the past 12 months – enjoying a solid demand from tenants, owner occupiers and potential investors alike.
According to Savills Australia, leasing activity for the twelve months to June 30 this year was up by more than 7% on the five-year average for Melbourne.
The dominant tenants clearly came from the retail and logistics sectors — with more than 740,000 square metres being leased. And of that amount, just over 200,000 square metres was by way of pre-commitment.
And according to recent research by Colliers International, the current level of rentals and capital values showed increases of between 5% and 18% across the metropolitan area during the last financial year.
Each of the suburban markets is poised to firm further by the end of the year due to a shortage in supply of quality stock and very little development activity currently occurring.
As such, this will only serve to put more upward pressure upon rentals and also cause a marked decrease in any incentives being offered.
Bottom Line: Generally, industrial property will offer you a better return than you'll receive from either retail or offices. But you need to remember that, unlike offices, industrial property’s ongoing fortunes are tied more to the retail sector than the general economy.
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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Industrial property generally a stable investment

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As we look back on 2011, Property Observer is republishing some of our most noteworthy observations of the year.
 
Baby boomers are facing an enormous challenge. And the sad fact is that they are probably not even aware of the problem.
You see, if they haven’t sold their traditional inner-suburban homes before 2012 they need to be prepared to hold onto them until 2025, because there simply won’t be a market for that type of property before then.
Unlike their parents, boomers will not wait until they are about to be carried out of their present homes before deciding to move. No, they see the next 20 to 30 years as a new chapter in their lives – where they'll want to downsize and start living for themselves.
Sure, they may need to crowbar the kids out first. Or maybe just move to an apartment or a townhouse with a couple of spare bedrooms.
Either way, they are about to start their decision process and will be doing it en masse. And therein lies the problem, when it comes to selling the traditional family home.
The problem is not that there will be any fewer buyers. Rather, that there will be about five times as many of these types of properties on the market over the next 12 to 15 years.
What exactly does this mean?
Despite residential property being currently on the doldrums, statistics tell us that about 60% of the average household wealth is tied up in your family home.
As such, the baby boomers’ equity is now at risk. And, potentially, this will affect them in one (or more) of three ways:
1. Those who have used their equity to finance pre-retirement property investments could well discover they actually have a negative equity in the family home.
2. They suddenly discover that the funding for their retirement plans could come up rather short.
3. The inheritance their children are expecting could be significantly reduced.
As you can appreciate, there could well be a number of people who might not be aware they have a problem, and may, quite unwittingly, are leaving themselves exposed.
Please understand that you're certainly not talking about "trophy" homes here. It is principally those three- to five-bedroom homes in the inner-middle suburbs of Brisbane, Sydney and Melbourne within the $1 million to $4 million price bracket.
These homes in some cases may have been last renovated 30 years ago, and now they represent mainly land value.
For Brisbane, this would involve suburbs like <a target="_blank" title="Bardon" href="/news">Bardon</a>, <a target="_blank" title="Mount Coot-tha" href="/news">Mount Coot-tha</a>, <a target="_blank" title="Stafford" href="/news">Stafford</a>, <a target="_blank" title="Ascot" href="/news">Ascot</a>, <a target="_blank" title="Mount Gravatt" href="/news">Mount Gravatt</a> and <a target="_blank" title="Woolloongabba" href="/news">Woolloongabba</a>.
For Sydney, it would include <a target="_blank" title="Mosman" href="/news">Mosman</a>, <a target="_blank" title="Chatswood" href="/news">Chatswood</a>, <a target="_blank" title="Roseville" href="/news">Roseville</a>, <a target="_blank" title="Killara" href="/news">Killara</a>, <a target="_blank" title="Gordon" href="/news">Gordon</a>, <a target="_blank" title="Warawee" href="/news">Warrawee </a>and Turramurra.
And for Melbourne, suburbs like <a target="_blank" title="Kew" href="/news">Kew</a>, <a target="_blank" title="Camberwell" href="/news">Camberwell</a>, <a target="_blank" title="Hawthorn" href="/news">Hawthorn</a>, <a target="_blank" title="Armadale" href="/news">Armadale</a>, <a target="_blank" title="Malvern" href="/news">Malvern</a>, <a target="_blank" title="Malvern East" href="/news">East Malvern</a>, <a target="_blank" title="Brighton" href="/news">Brighton</a>, <a target="_blank" title="Elwood" href="/news">Elwood</a> and <a target="_blank" title="Sandringham" href="/news">Sandringham</a>.
Historically, your family home has been considered to be a de facto part of your superannuation. However, as a Baby Boomer that could well prove to be a myth — unless you make the move to downsize early, and beat the rush.
All the financial crisis has done is delay the start of this process a year or two, due to the general uncertainty.
As a general comment, during this period, the baby boomers will tend to live where they now holiday, and holiday where they now live. So in the city they will seek a scaled-down version of the level of comfort they now enjoy – preferably in the same neighbourhood.
The concept of a retirement village is not on their agenda, but the boomers haven’t really thought through their ongoing needs. Likewise, developers are not seriously addressing the key issues involved.
Unlike their parents, who generally left their downsizing until their frailest years, Baby Boomers will make their move while they are still fit. And they will probably not plan to move again.
The baby boomers’ relative fitness (or perhaps being in denial about growing old) that will cause them to choose their new home, while paying scant regard to becoming less mobile or becoming suddenly lonely when one partner dies.
Therefore, in order for their new downsized home to have enduring value, baby boomers need to pay close attention to both their physical and community needs.
While this may represent quite a challenge it also provides a fruitful niche market for the astute developer.
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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Baby boomers: Sell now or forever hold your family home

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."

[smartcode_project:default project_id=4661 project_image_fid=314259]

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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