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The National Australian Built Environment Rating System, or NABERS, benchmarks existing buildings against one another, where zero means a “poor" rating and five indicates an "excellent" green-rated building.
This rating system currently covers offices, homes, hotels and retail centres, although the actual criteria vary between the different types of buildings.
For offices, they include aspects like energy, water, waste and the indoor environment. Whereas for hotels, retail centres and homes, it is only energy and water efficiency that is rated.
Since November 2010, owners of commercial offices have been required to disclose their building's NABERS rating whenever they sell (or lease) any space larger than 2,000 square metres.
Their NABERS rating needs to be displayed in all advertisements, and appropriate documentation is to be available upon request. 
The common exemptions include:
<ul>
<li>Mixed-use buildings with less than 75% office space;</li>
<li>Buildings constructed or renovated within the past two years;</li>
<li>Lease deals for periods less than 12 months;</li>
<li>Strata-titled property ownership; or</li>
<li>Sale of a partial interest in a property.</li>
</ul>
Bottom Line: The penalties for non-compliance can be up to $110,000 for the first day and then $11,000 for each further day of non-compliance.
However, it does provide you with a great opportunity to capture a strategic advantage if your building holds the highest possible rating, given its age and condition.
Therefore, this system is important to ensure your property manager is fully up to speed on all the various requirements. And if you would like to study any of this in more detail, simply <a target="_blank" href="https://www.cbd.gov.au/">visit the government's website</a>.
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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chrislang-EQKojcgJPV

What green ratings mean for commercial property

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For the past few weeks, the world's media seems to have been dominated by two unfolding dramas: the extraordinary and rather amateur performance in Washington, as the US government lurched towards potential default, and the concerning spike in Euro-region yields, against the backdrop of their apparently insoluble sovereign debt issues.
However, as Amy Auster reported in Saturday's Financial Review, there was also a really positive development last week (certainly for Australia), which seems to have simply "snuck under the radar".
You see, China has just decided to permit participating banks in Hong Kong (including foreign banks) to deal in Chinese yuan anywhere in the world when settling transactions.
How will that benefit Australia?
Let's take a look for a moment at the level of global sovereign indebtedness, as a percentage of GDP. The first piece of good news is that Australia sits at the bottom of the table, whereas Germany and the UK have more than three times the government debt levels of Australia. The US has more than four times Australia’s debt level, and Japan has a massive 9.5 times Australia’s government debt.
<img src="/images/stories/langaugust9.jpg">
The second piece of good news is that China doesn't even appear on this list. And that's because it is a net lender to the rest of the world — mainly to the US.
When asked recently about the extent of China's continued growth prospects, Michael Spence (Nobel Prize-winning economist) said: "I think the answer is something like two decades, in the later part of that they will start to slow down."
A recent study (published by China's National Economics Research Institute) estimates that the country's total disposable income is some 65% higher than the government's official figures. And about 80% of this "hidden" income is in the hands of 20% of the population.
But more importantly, these wealthy households are saving something in the order of $1.5 trillion each year. And that represents roughly 50% more than the entire Australian economy.
China's stated aim is to surpass America's economic dominance. And by now internationalising its currency, this is clearly the next step towards that goal.
So, what does this mean for Australia?
Up until this recent announcement, the yuan could only be traded onshore for items like iron ore — and not property or shares. But following the announcement, the yuan can now be openly converted offshore — with only a few restrictions, for the time being.
However, as the new-found currency freedom grows, investors will be able to take funds in and out of China with little or no restriction.
Normally these investors would consider the US or European markets first up. But with their high levels of sovereign debt and the credit agencies looking to downgrade their strong ratings, Chinese investors will gravitate towards AAA safe-havens like Australia.
And as you can appreciate, gaining the benefit of just a fraction of this annual $1.5 trillion in savings, would have a dramatic (and positive) impact upon the Australian economy.
Bottom Line: Initially, those funds might target our share market. But this surge will quickly spread into commercial property, farms and major infrastructure projects.
All of which will serve to balance out Australia's economy and lessen our dependence upon the mining sector.
However, the Foreign Investment Review Board will urgently need to simplify its approval process because Australia requires an injection of investment funds like this to ensure its overall growth prospects.
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/" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">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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Loosening yuan restrictions will open Australia to Chinese investors

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Australia's dollar may be considered high compared with other countries, but that hasn't dampened overseas investors, who are clamouring to buy up our commercial property.
And this only serves to confirm Australia's "safe-haven status", being closely aligned with the Asian region.
During the 1970s, it was UK property companies that dominated the Australian commercial scene. Then Japan led the boom period during the 1980s. And it was southeast Asia that mopped up the aftermath, throughout the 1990s.
This time around, there is a spread of buyers — coming from the US, Asia and Europe. And Australia appears to be appealing to each of these investors for different reasons.
According to David Rees (head of JLL Research): "For US and European investors, Australia is an easy way into Asia-Pacific; for Asian investors it is an easy way out [of the region] into more transparent, well-regulated markets."
Principally, the buyers for Australian property are coming from the Asian region — cashed-up pension and property funds. However, there has also been strong interest by US and German investors as well.
Currently, these purchases represent about 10% to 15% of the market by value. And this is being seen as a long-term (rather than short-term) trend.
According to DTZ, in 2010 property investment within the Asia-Pacific region topped $158 billion for the first time — more than all of the investment undertaken throughout Europe.
Bottom Line: Even if some local investors are being overly cautious, overseas buyers realise the Australian commercial property market has now begun what will prove to be a strong upswing.
Chris Lang is a commercial property investor and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" 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 overseas buyers love Australian commercial real estate

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<a target="_blank" href="https://www.propertyobserver.com.au/commercial/commercial-property-finance-different-to-residential/2011071950847">Last week </a>we looked at the reasons why lenders view commercial property in a different league to residential property when it comes to finance.
And then we moved to the various aspects of a project commercial lenders look at as far as risk is concerned.
However, what you really want to know is: How do these considerations affect the price for your loan?
Unfortunately, the answer is significantly.
The precise way in which different lenders price in risk is proprietary knowledge they tend to guard the closely. Therefore, it can vary markedly between lenders.
As a result, larger loans with low perceived risks can be priced at very close to residential mortgage rates, whereas smaller deals (but with higher risk factors) will often attract far higher interest rates.
Basically, you need to follow the same steps as you would in choosing a property intended to provide you with a good long-term return. And help you, these are:
<ul>
<li>Purchase high-quality properties that would easily be re-leased if they become vacant.</li>
<li>Buy properties with sufficient time left on the lease, to allow a reasonable loan term (preferably at least three years).</li>
<li>If it is a long lease, make sure there are regular market reviews – so you aren't left with an asset that is under-let for a long period.</li>
<li>Make sure there is good tenant security. This can be achieved by way of personal and corporate guarantees (which is most appropriate depends on the nature of the tenant – a corporate guarantee from Coles is sufficient, but is not from a small business). Bank guarantees or significant funds bonded in trust also provide good security against default by the tenant.</li>
<li>Financially strong tenants are attractive to lenders. For this reason, publicly listed? (or otherwise well-known) companies always appeal to lenders.</li>
<li>Properties with several alternate uses are generally perceived as being lower risk than more specialised assets (e.g.: There are more alternative uses for an office than for a motel).</li>
<li>Where the asset has a specialised use, it is important there is very strong demand for that style of property. The quality of the tenant and lease are also more important in such circumstances.</li>
<li>A strong rental return providing for a significant coverage of the interest cost.</li>
</ul>
Again, many thanks to <a href="https://his-best.biz/2011/05/25/financing-the-deal/">Perry Finance</a> for these valuable insights into the financier's world of commercial loans.
Chris Lang is a commercial property investor 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/" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">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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How to get the best financing for your commercial investment

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Commercial property finance is one of those aspects probably the least understood — and therefore, can lead to some are rather poor decisions by investors.
The most important thing you need to grasp is that there are basically no hard and fast rules about the various factors like the leverage that is available, costs associated with commercial loans or the actual lending criteria most financiers and adopt.
When it comes to commercial finance, everything has to be viewed in relation to the strength and size of each particular deal.
Most people are used to residential mortgages — where a lender will offer a set rate and charges, plus different amounts of leverage, depending on the location of the property.
Servicing is calculated by taking into account all of the debts and all sources of income attributable to the borrower(s) or the guarantor(s).
There are some commercial lenders that operate in a similar manner. But generally, these lenders only deal with smaller transactions, in restricted geographical locations.
The main point here is that residential lenders tend to price most deals the same way, with some possibly discounting for larger loans. While perceived risk is the factor dictating whether they will fund a loan or not, it has little or no bearing on the actual price for the loan.
On the other hand, commercial lenders place much greater emphasis on quantifying risk and will apply different lending ratios, depending on the risk they perceive for a particular security. However, they could also adjust pricing according to these same factors.
Therefore, two loans of the same size may be significantly different in terms of pricing.
 
Lenders look at a wide range of characteristics when determining the risk level of a transaction. These will include:
<ul>
<li>The financial strength of the borrower.</li>
<li>The experience of the borrower with the type of property &amp; location.</li>
<li>The term of the lease itself.</li>
<li>The financial strength of the tenant.</li>
<li>Guarantees attached to the lease.</li>
<li>Relevant clauses in the lease (such as market reviews).</li>
<li>The current strength of the local market.</li>
<li>Overall economic conditions at the time.</li>
<li>The lenders view of the geographic location &amp; type of property.</li>
<li>Possible alternate uses for the property.</li>
<li>Whether you plan to hedge against interest rate movements.</li>
<li>The lending ratio you are seeking.</li>
</ul>
These details have been provided by courtesy of <a target="_blank" href="https://his-best.biz/2011/05/25/financing-the-deal/">Perry Finance</a>, which is one of my trusted consultants, when it comes to acquiring commercial property.
Chris Lang is a commercial property investor and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" 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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Commercial property finance different to residential

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Sometimes the best-looking property can be the worst real estate investment you've ever made. Remember that investing in commercial property is all about the price, the terms and the ongoing return on investment. Here are several tips for successful commercial property investing.
Be an investor – not merely an accumulator of commercial properties.
The reason you make investments is to produce a worthwhile profit. So if you end up buying a property that produces little or no growth, \you basically acquired a property (instead of making an investment).
Get yourself a mentor so you benefit from his or her experience.
Mentors can save you from making very costly mistakes, identify when you've missed due diligence items, and connect you with resources that you otherwise wouldn't have immediate access to.
Understand that every commercial property has a lifetime.
One of the biggest errors you can make as an investor is to ignore the fact you will need to spend money on the upkeep of the building over time. The building may need a new roof, or the electrical system may need to be upgraded. Every building goes through these renewal phases. Therefore, make sure you have a long-term strategy to handle such repairs.
Focus on one commercial property sector at a time.
Especially when you're starting out, you should focus on one type of investment: offices, shops, warehouses, or whatever you prefer. Each deal needs your undivided attention. It's much better to master one aspect than to be average over many. And who wants average-performing properties anyway?
Decide whether you and your assets are adequately protected.
As with anything in life, messy lawsuits can occasionally occur. Therefore, you need to do everything in your power to protect yourself and your investment. Ask yourself the following questions to determine whether you're fully covered:
How is your commercial property protected – both legally and insurance-wise?
Are your other investments totally separate from each other so one lawsuit can’t affect the other investments?
What do you have at stake, if you lose a lawsuit? Is your personal property, for example, your home, isolated?
Don't try to guess when it comes to the answers of these questions. Talk to a lawyer to ensure you're fully protected if ever you were to be sued.
For a partnership or syndicate, finance the deal using non-recourse finance. Non-recourse means 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 sour, and, if the property were to fail, the financier cannot come after you personally.
Once you understand the “rules of the game”, buying commercial property is really quite straightforward. You just need to do a little homework and make sure you get the right advice along the way.
Chris Lang is a commercial property investor 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" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">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 tried-and-true tips to help you profit from commercial property investing

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Investors have begun snaring some quality industrial properties, as rentals begin to climb following a reasonably static past five years.
<img src="/images/stories/lang-chart-cropped.jpg">
As you can see from the table, this increase in activity has been reflected in the dominance of developers bringing new stock onto the market.
Plus, you'll notice that private investors have emerged as the major category of buyers for industrial property.
The current wave of development is catering for a much larger office component, relative to what is normally provided by industrial developers. So much so, it is now often as high as 40% of the overall building area.
This trend is being driven by occupiers wanting to combine their administration building, in top-quality accommodation, with their distribution facility, rather than leasing an outer-lying warehouse, and having their head office in a more traditional office location.
The bottom line is: many of the larger developments are occurring by way of a fully-integrated business park environment, catering for small- to medium-sized businesses.
 And this is providing investors with the opportunity to acquire affordable industrial properties, surrounded by all the amenities needed by those tenants who occupy them.
Chris Lang is a commercial property investor 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/" target="_blank" title="Chris Lang's blog">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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Savvy investors cash in as industrial occupiers change tactics 

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Of all the sectors within the commercial market, most people feel comfortable with retail. And that's only natural, because all your family members are usually going in out of shops as part of their everyday lives.
However, familiarity with something doesn't always make for good investment decisions.
And yet, investors continue to out-bid one another – and are quite prepared to accept yields as low as 3% per annum – for some retail investment properties.
Inherent in such decision is the belief there will be a significant rental increase not too far away.
But store rent has been outstripping store sales for quite a while. And turnover is unlikely to reach its long-term growth level 4% any time soon.
That means a significant re-adjustment is about to take place within the retail sector.
There are two structural changes driving this inevitable change:
<ol>
<li>Australians were net spenders in 2005, but we now have a historically high 11.5% savings rate.</li>
<li>Traditional retailers shot themselves in the foot by highlighting the presence of online shopping, which is currently at 6%. Westfield Group is predicting this will reach 10% of sales over the next five years.</li>
</ol>
Bottom Line: Not all retail properties are at risk, because it all comes down to your tenant.
Food and hardware outlets near new housing estates (for example) will be in high demand. As will traders who have wholesale or corporate clients in addition to their in-store traffic.
However, if you currently hold retail property with specialty tenants (like fashion or gifts), now would be a good time to rationalise your portfolio.
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Retail not always the best investment

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The key benefit of investing your money in commercial property is its security.
When the economy declines/recedes, you will find commercial property generally holds its own. And when the economy is on the up, commercial property grows in value and provides you with a steady income.
Here is a summary of the benefits of investing in commercial real estate.
1. Strong returns
 
Commercial property provides you with strong and reliable returns in the form of income and capital gains. Your aim ought not be to simply make a quick buck, but to take advantage of a growing investment over time, where you can achieve a return consistently above inflation.
2. Stability of income
 
An important point to make about commercial property is that not only are your returns higher, they are also usually more secure. Unlike six- to 12-month leases for residential property, commercial tenants will generally lease for periods ranging from three to 10 years.
3. Lower risk
 
Commercial property investment tends to carry less risk than residential property or the stock market.
4. Exposure to different sectors of the economy
 
Retail and industrial properties probably have the most direct relationship to the economy – with retail property tied closely to consumer spending. Industrial property follows consumer spending trends about six months later.
Office buildings tend to perform more based upon supply and demand of the available office space.
5. Tax benefits
 
You will find that commercial property provides you with generous tax benefits – far more than with residential property.
Depreciation allowances on plant equipment within the building (air-conditioning, carpets, lighting, etc.) are the major benefit. But most commercial properties also enjoy significant building allowances as well.
6. Hedging against inflation
 
Property overall has traditionally been viewed as a good hedge against inflation. But long-term surveys confirm commercial property has given investors excellent returns – far outpacing inflation.
7. Investment control
 
As an owner of commercial property, you have a significant degree of control over your investment, such as: renovations, upgrading, changing the use of the property, restructuring the terms of the lease, choosing the type of tenant you want, redevelopment and ultimate disposal.
8. Ability to add value
 
Just a few ways for you to add value to a commercial property include: renovating, upgrading, subdividing and enlarging, improving the external and internal appearance, and renegotiating the lease terms for your benefit.
9. Leverage
 
As you improve the property and it grows in value, you are able to borrow against your commercial investments. That way, you could quickly be in a position to control several properties – through borrowing more against your improved equity.
Chris Lang is a commercial property investor 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" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">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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Nine reasons to invest in commercial property

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Investing your hard-earned funds into commercial property can be very rewarding. You should look upon this as a strategic process, which you’re able to approach in many ways.
Outlined below are several options available to you when investing your money in a commercial property.
Option 1 – Listed property trusts
 
This is probably the easiest way to invest in commercial property; and involves little more than you opening an account with a stockbroker, depositing some money and then placing an order.
Option 2 – Property securities
 
This option consists of a managed fund that invests in a basket of listed property trusts. They are especially suited for beginners, who are unsure about which property trusts might be the most appropriate.
Option 3 – Public property syndicates
 
This process starts with an application via a product disclosure statement and generally requires you to commit a minimum of $10,000. You are then normally locked into the investment for the duration of the syndicate – which may be up to 10 years.
Option 4 – Mortgage funds
 
These are managed funds that lend money using commercial property as security. They generally offer the investor returns that can be a higher than a bank term deposit or cash management account; but there is no capital gain from this type of investment.
Option 5 - Mezzanine finance
Mezzanine finance is the provision of funding for commercial property developments.
As the name suggests, it involves providing funds between the developer’s own equity and that allocated by mainstream commercial lenders. As such, it carries a far higher degree of risk – and the potential for higher returns – than regular mortgage funds.
Option 6 – Direct property investment
Direct property is for people who have done their research on the market. It is also possible to buy into direct property through a private syndicate, which we’ll cover in a later article.
Either way, direct ownership of property offers you the greatest level of control.
Bottom line: The option that you ultimately choose will come down to what we affectionately call your “threshold of insomnia”. In other words, you ought only invest in something that won’t cause you to lie awake at night worrying.
You need to be totally comfortable with the level of control (or lack of it) that you have. And you should always seek to learn as much as possible about the option you intend to pursue.
And if you do have difficulty in finding the necessary background information, then you should cross that option off your list – however attractive it may initially appear.
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Six ways to invest in 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.

[smartcode_project:default project_id=135096 project_image_fid=356818]

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."

[smartcode_project:default project_id=135096 project_image_fid=356828]

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.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

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."

[smartcode_project:default project_id=135096 project_image_fid=356829]

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."

[smartcode_project:default project_id=135096 project_image_fid=351104]

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.

[smartcode_project:default project_id=135096 project_image_fid=356822]

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.

[smartcode_project:default project_id=135096 project_image_fid=356826]

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.

[smartcode_project:default project_id=135096 project_image_fid=351102]

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.

[smartcode_project_cta:default project_id=135096]

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."

[smartcode_project:default project_id=4661 project_image_fid=372549]

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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