<html><body>
The Property Council of Australia recently released its latest survey — for the six months to January 2013.
It reports that the national vacancy rate for CBD offices has increased slightly to 10.4%. However, that hardly tells the whole story.
An uneven spread
<a rel="ibox" href="https://his-best.biz/assets/2014/02/Office-vacancies.png"><img height="370" width="300" src="https://his-best.biz/assets/2014/02/Office-vacancies-243x300.png" alt="Office-vacancies" title="CLICK to enlarge" style="display: block; margin-left: auto; margin-right: auto;"></a>As the accompanying table reveals, the vacancy levels show a marked variation around Australia.
Demand for space in Brisbane and Perth has declined in line with the mining sector.
Yet despite this, new supply is scheduled to come onto the market — with the current total office stock due to increase by more than 10%, over the next four years.
Likewise, Adelaide will also experience an oversupply through to at least 2016.
Not all bad news
Both Sydney and Melbourne have seen a number of older office buildings converted into upmarket residential apartments. However, the Barangaroo Project will soon push Sydney's prime CBD vacancies above 10%.
Overall, demand for Melbourne has remained strong — causing its vacancy rate to fall to around 8.7%.
Bottom line: The CBD office markets are not interest-rate sensitive. Instead, they respond purely to their local supply and demand for space.
At this stage, Melbourne would appear to be best positioned of all the CBD markets to grow in value over the next threee to five years — which is now being evidenced by the strong interest from overseas purchasers.
And you would expect that to flow through to the suburban office market as well.
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. 
You can visit his website <a href="https://property-edge.com.au/" rel="nofollow" target="_blank">Property Edge Australia</a> to help you get the most out of your commercial property investing.
                
</body></html>

chrislang-EQKojcgJPV

What CBD office vacancy stats mean for commercial property

<html><body>
Commercial property stands to benefit from the recent improved business trading figures — which have soared to a two-year high. These now fall into line with the NAB Survey's confidence levels.
As such, many forecasters believe these latest figures (together with the growth in house prices over the past 12 months) now reflect the underlying strength of Australia's post-mining economy.
Therefore, further interest rate reductions expected by the RBA are unlikely to occur any time soon — if at all.
The China factor
As you would be aware, China has just confirmed its annual growth figure at 7.5% for the December quarter.
While this may be down from the heady 10% plus during our mining boom, it clearly reflects a far more realistic and sustainable level of annual growth.
All this means is that the mining sector will now be operating in a more traditional supply phase — instead of the previous boom-time development phase.
You'll recall <a href="https://www.propertyobserver.com.au/commercial/don-t-be-put-off-by-negative-press-when-considering-commercial-property-prospects-chris-lang/2013043060890" target="_blank">an article last year</a> outlining China's potential demand for our iron ore over at least the next 20 years or so — where the underlying facts and logic remain rather persuasive.
If China continues along this path, it can only help in re-balancing the Australian economy.
Overseas demand for commercial property
Over the past five years, overseas buyers (mainly Asian) have accounted for more than half of the direct purchases in commercial property.
And yet over the past 12 months, savvy local investors have also re-entered the market in competition — and now account for 70% of direct commercial property purchases.
However, with our dollar falling below parity with the US the level of interest from overseas buyers will only escalate.
Even though many of these purchases may be at the higher end of the market, this effectively forces investors to seek out suitable property in a lower price bracket.
Bottom line
As the competition increases these higher prices will begin filtering down through the entire market, causing yields to firm. And that will inevitably result in solid growth for investors, over the next three to five years.
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. 
You can visit his website <a rel="nofollow" href="https://property-edge.com.au/" target="_blank">Property Edge Australia</a> to help you get the most out of your commercial property investing.
 
</body></html>

Increasing overseas interest and surge in confidence are good signs for local investors

<html><body>
In an article last year, I flagged <a target="_blank" href="https://www.propertyobserver.com.au/office/activity-based-wokplace-formats-translates-to-bottom-line-savings-but-require-the-space-to-implement-chris-lang/2013081364152">the growing trend of "hot desking"</a> among mid- to larger-business services firms employing our knowledge workers, around Australia.
This trend (since the early 1990s) has been driven by the inevitable cost savings — resulting from a reduction in their office space requirements.
And if this trend were to continue it would clearly have the potential to adversely affect the overall demand for office space going forward.
However, a recent article challenged the underlying wisdom of this penny-pinching fad.
First, the logic
The current rationale contends that by replacing individual offices with workstations (even removing the dividers), this significantly reduces the space requirement per employee. At the same time, the aim is to improve staff collaboration.
And now many of these firms are simply issuing their staff with a mobile phone, a laptop and a locker, adopting a "virtual office" and "clean-desk" policy — where you (as an employee) have no fixed location within the office from one day to the next.
What does the latest research reveal?
Diane Hoskins (of big US office design firm, Gensler) has researched 90,000 people, from 155 companies, across 10 industries.
As a result, her team found that Knowledge Work comprised four separate functions:
<ul>
<li>
Focus (individual work involving concentration and attention to a particular task);
</li>
<li>
Collaboration (working with others to achieve a goal);
</li>
<li>
Learning (acquiring knowledge or skill through education or experience); and
</li>
<li>
Socialising (interactions to create trust, bonds and values, collective identity and productive relationships).
</li>
</ul>
What they discovered was that collaboration was not the most significant factor in workplace effectiveness. Rather, it was individual work focus!
Furthermore, they found that these new-style office layouts actually make focus virtually impossible.
Instead, workers experienced constant "interruptions, auditory and visual distractions (which) all combine to make focus the modern office's most compromised work mode."
Bottom line: This is great news for commercial property investors.
While current office design seeks to improve collaboration, it actually sacrifices individual focus. Thereby, reducing worker efficiency — resulting in far lower productivity overall.
Apparently, the Gensler research also found that workers who can focus effectively are able to do the following things more effectively in the workplace:
<ul>
<li>
57% more able to collaborate;
</li>
<li>
88% more able to learn; and
</li>
<li>
42% more able to socialise.
</li>
</ul>
As the penny starts to drop, more and more firms will begin reverting back to a more conventional (larger) office layout.
And therefore, you will see demand for office space accelerate over the next three to four years — with a resultant increase in both rentals and capital values.

<hr>
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a href="https://property-edge.com.au/" rel="nofollow" target="_blank">Property Edge Australia</a> to help you get the most out of your commercial property investing.
This article originally appeared on <a href="https://his-best.biz/" target="_blank" rel="nofollow">Commercial Property Made Easy</a>.
 
</body></html>

The penny has dropped: Failing hot desking fad will benefit commercial investors

<html><body>
There has been a whole lot of negative talk recently about the detrimental impact of the car industry leaving Australia.
And clearly, our hearts go out to all the affected workers and their families in car manufacturing and those related component suppliers.
Most of us cannot even begin to imagine the shock and surprise they are now feeling — particularly right on Christmas.
And yet, if you just focus upon the likely impact on the Australian economy, much of the commentary can be seen as misguided.
Certainly, Holden's departure will have a short-term impact. But let's look at the facts: It appears to be emotionally charged, and politically motivated — with the talk of a recession quite wrong, and bordering on mischievous.
<ol>
<li>
As Saul Eslake (chief economist at Bank of America Merrill Lynch) points out, car and components manufacturing represents about 0.4% of total employment. An adds only a similar amount to Australia's gross domestic product (GDP). As you would probably realise, this is no more than what we already experience now as quarterly GDP fluctuations.
</li>
<li>
A study by Flinders University found most workers, who were made redundant by Mitsubishi's 2007 closure of its Lonsdale and Tonsley Park factories (in Adelaide), found alternative work within 18 months..
</li>
<li>
Unlike Mitsubishi, the actual closures for Ford and Holden are not happening immediately. Rather, they have been foreshadowed well in advance and will occur progressively through to 2017.
</li>
<li>
State and the federal governments (plus the companies involved) will be providing millions of dollars of support and retraining help, for every displaced worker.
</li>
<li>
Apart from those close to retirement, this means everyone who is serious about finding ongoing employment has a once-in-are-lifetime opportunity for a "financed transfer" across to a new employer — whose future is not dependent on government subsidy for survival.
</li>
</ol>
You only need to cast your mind back to the bushfire devastation Victoria went through in early 2009. As a result, the recovery process (funded by the state and federal governments and, in that case, the insurance companies) left the Victorian economy in a far stronger position.
Now it enjoys positive net migration, when compared with other states. And more importantly, that process has also resulted in Victoria's present solid budget position; as well as an escalating commercial property market.
Bottom line: You need to look past the knee-jerk, emotional reactions, plus the inevitable short-term adjustment. And instead, focus upon the long-term sustainable benefits, which these current events will deliver — both to the economy and the commercial property market.

<hr>
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a href="https://property-edge.com.au/" rel="nofollow" target="_blank">Property Edge Australia</a> to help you get the most out of your commercial property investing.
</body></html>

What does the car industry closure mean for commercial property?

<html><body>
A recent article in the Australian Financial Review reassured investors that the anticipated short-term surge in sublease space (within Australia's CBD Office markets) has simply not eventuated:
"Sublease space spikes at times when the economy is weak and business confidence is low because companies are restructuring and downsizing."
<img alt="CBRE_sublease_space_by_industry" height="315" width="470" src="/images/stories/2013/11/12/CBRE_sublease_space_by_industry.png">
Source: CBRE
Furthermore, the article suggested that the overall amount of sublease space is expected to fall sharply over the next few months — following the post-election improvement in business confidence.
And of all the capital cities, the CBRE research shows Melbourne has provided the greatest improvement over the past year.
What else does the chart reveal? For a number of years now, this blog is pointed to Melbourne having far greater stability — when you compare it to other capital cities. And my reasoning has been that Melbourne enjoys a far more diverse tenancy mix.
However, there has never really been any definitive analysis, to clearly confirm this particular assertion.
That is until now!
As you can see from the chart above, every CBD (other than Melbourne) has a major exposure to one specific market sector:
<ul>
<li>
Sydney: Finance &amp; insurance;
</li>
<li>
Brisbane: Mining, manufacturing &amp; construction;
</li>
<li>
Perth: Mining, manufacturing &amp; construction; and
</li>
<li>
Canberra: Information technology.
</li>
</ul>
As you would appreciate, when any of these business sectors begin to surge those capital city office markets respond rapidly — with escalating rentals and prices.
However, during an economic downturn (like the GFC ) those same markets tend to suffer the most.
Bottom line is with a more-balanced spread within its tenancy mix, Melbourne's office market is better placed to withstand such economic gyrations.
While it may not reach the same heady peaks, nor does Melbourne plumb the depths experienced by the other capital cities.
Perhaps it lacks some of the excitement. Yet instead, Melbourne has historically been able to offer investors solid and predictable returns.

<hr>
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a target="_blank" rel="nofollow" href="https://property-edge.com.au/">Property Edge Australia</a> to help you get the most out of your commercial property investing.
 
</body></html>

Balance is best: Why Melbourne's office market is well placed to withstand economic gyrations

<html><body>
You may recall several <a href="https://his-best.biz/?s=baby+boomers" target="_blank">blogs in the past about baby boomers</a>, explaining the effect they will have upon the property market — both residential and commercial.
In 2005, I warned investors that: If you hadn't sold your traditional inner-city family home by 2010-11, you had better be prepared to hold it until 2025.
My reasoning for this was not that there would be any fewer buyers. Rather, they would be five times as many of these homes on the market — as baby boomers sought to downsize en masse.
Based on the recent buying frenzy (and the regular 70%+ clearance rates) for houses each weekend this year you may feel I had been somewhat mistaken.
However, you need to keep in mind that the GFC had effectively put everything (and everyone) "on hold" for about five years. And the residential market is merely playing catch-up, on both price and activity.
Anyway, an article appeared on page five in the weekend Australian Financial Review entitled: "Baby boomers set to flood the market with family homes", which caught my eye.
So, what will this mean?
For those boomers seeking to downsize, it will mean a growing number of similar competing listings on the market. But with no additional buyers, for these out-moded homes.
Many of them will be in need of major upgrade work. And some will have reached the point, where they only represent land value.
Therefore, you will soon face the likelihood of downward pressure on pricing, in order for you to achieve a sale.
And this new reality will certainly have some unexpected consequences:
<ol>
<li>
What you once looked upon as your de facto superannuation will be eroded;
</li>
<li>
You will have less to spend on your new "smaller" home or apartment; and
</li>
<li>
The inheritance available to your children could effectively be trimmed.
</li>
</ol>
Will this affect commercial property?
On the face of it, you would probably expect not too much impact at all.
However, during the early 2000s, many investors use the untapped equity in their homes, to set up lines of credit.
And then, used them to purchase one or more solid commercial investment properties.
The commercial properties themselves may be performing well. But it is the LVR for the line of credit, which will concern your bank over the next 10 years — as the market falls away, for your traditional family home.
As such, you may find yourself having to sell the commercial property to keep your family home. Or be forced to sell the family home, in what will soon become a soft market.
Bottom line is fortunately, most of my clients will have already taken the necessary steps to avoid this dilemma.
However, with the residential market running hot at the moment, you still have a small window in which to resolve any exposure you may currently have.
 
<hr>
 Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property.
You can visit his website <a target="_blank" rel="nofollow" href="https://property-edge.com.au/">Property Edge Australia</a> to help you get the most out of your commercial property investing.
 
</body></html>

How baby boomer downgraders may affect commercial property investments 

<html><body>
This is a question often asked by traditional residential investors when they're considering the transition across to commercial property.
And you'll quickly discover the reasons are rather compelling.
Reason #1: Longer leases
Quite often, you'll find residential tenancies will be on a month-by-month basis, maybe six months, perhaps for a year.
Whereas, commercial properties will tend to lease for between three and five years, and often for longer. That means you have fewer tenancy changes, and a far more predictable income stream.
Reason #2: Greater security
When residential tenants want to exit half-way through a lease, they simply need to find a suitable substitute tenant. And then, transfer the lease across to that person.
From there on, this new tenant becomes responsible for the rental, over the remainder of the lease term.
Commercial tenants are running a business from your property. And whenever they sell their business, they also require your approval to 'assign' the lease.
However, here's the difference: If the new commercial tenant defaults in paying the rental, you also have recourse to the previous tenant as well — because commercial leases are business contracts, enforceable by law.
Reason #3: Commercial tenants pay outgoings
Typically, residential properties will provide you with a 5% gross rental return.
From this, you need to pay the rates and taxes, insurance, maintenance and so on — leaving you with about a 3.5% net return, at the end of the year.
Depending upon what (and where) they are, commercial properties will generate a 5% to 9% rental return.
However, commercial tenants are also required to pay the various building outgoings on top of their rental — making this a net rental return to you.
Reason #4: Commercial tenants operate a business
As you know, if the toilet stops working in an apartment … the tenant asks you to send around a plumber. Whereas, commercial tenants quickly attend to (and pay to fix) the problem themselves — so as not to disrupt their business.
Furthermore, the overall appearance of the property becomes a reflection on them. As such, your property is kept in good condition, at their expense.
Therefore, whether the lease requires it or not, most commercial tenants will regularly repair and repaint the property, in order to maintain a good corporate image.
Reason #5: Payment certainty
Most residential properties are rented by individuals. Therefore, the rent is generally paid in cash or by personal cheque. And this can often vary in its timing.
Because they are running a business, commercial tenants consider rent as simply another regular expense each month. And generally, this gets set up as an automatic bank transfer — and can be specified as such, in the lease.
Bottom Line: As a residential investor, you find yourself having to deal with the vagaries of individual people.
However, as a commercial investor, you tend to enjoy a more predictable long-term relationship with your tenants — based upon a proper business footing.
Doesn't that sound like a far better arrangement?
 
<hr>
 Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a rel="nofollow" target="_blank" href="https://property-edge.com.au/">Property Edge Australia</a> to help you get the most out of your commercial property investing.
 
</body></html>

The five reasons to choose commercial over residential property

<html><body>
Last Thursday, an article by Mercedes Rueh highlighted the emerging trend of hubs and co-working spaces in Melbourne and other Australian capital cities.
What you need to take away from the article is that the nature of work is changing. And therefore, creating new opportunities for you and other commercial property investors, who are flexible and forward thinking.
What are co-working hubs?
Co-working spaces are shared offices with most of the facilities that you would find in a normal office — such as wi-fi access, audio visual equipment, coffee machines.
They can be large open working spaces with tables, or split into larger and smaller rooms. It just depends on the style and preference of the users for the space.
Individual and groups workers are able to rent space for hourly, daily, weekly or monthly fees or set monthly fees.
You are starting to find these hub facilities popping up in most Australian capital cities.
Who actually uses shared work-spaces?
Co-working spaces are the first choice for many 'bootstrapping' start-ups because they offer the features of a normal offices space with lower costs. But it is not just small start-ups using this hub format.
Deloitte, AMP Capital, the NSW government, the GPT Group and CBRE are just a few of the companies experimenting with dynamic work spaces.
These spaces are becoming more popular because they foster creativity, collaboration and community which benefit employees and managers.
The demand for co-working spaces is only increasing — as office workers, specifically Gen Y, demand work that is more flexible and engaging.
What does this mean for landlords?
The uses of commercial property are changing in many ways. And the emerging co-working trend offers you the opportunity to add value to your properties.
At the end of an existing lease, or when a tenant vacates — you could clear out an older office building floor. Then refurbish the office with as a modern co-working space.
The secret then lies in securing one of the emerging, more-progressive corporates. Or a single "entrepreneurial" head tenant, who will then assume responsibility for arranging and coordinating all the smaller users.
Bottom line is if you simply allow yourself think outside the box and recognise emerging trends in the commercial property market you'll always be able to find opportunities to significantly add value to your older portfolio.
 
<hr>
 Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. 
 
You can visit his website <a target="_blank" rel="nofollow" href="https://property-edge.com.au/">Property Edge Australia</a> to help you get the most out of your commercial property investing.
 
</body></html>

Breathing life back into your old office: Chris Lang

<html><body>
On the face of it there's no apparent logic as to why accepting a smaller yield would make sense.
Unless of course, you intend to occupy the property when the lease expires; or it may adjoin the one you already own. In which case, the initial low rental is really of north of paramount importance.
However, not every such sale will have a special value to the purchaser. More often, the reason for accepting an initial low yield will be that:
<ul>
<li>
There is a pending review, to bring the rental in line with market level;
</li>
<li>
You have a strong tenant and a long lease, and place some added value on having a secure cash flow; or
</li>
<li>
The property has redevelopment potential, and a short-term lease.
</li>
</ul>
When are you able to snare a higher yield?
Sometimes the remaining lease on a property may be short, with no certainty the tenant will continue on.
You're being compensated for the lack of security in cash flow.
Therefore, despite the rental being appropriate your passing yield may well end up higher than usual. And, in effect, you're being compensated for the lack of security in cash flow.
However, there are several other reasons why you may obtain a higher passing yield:
<ul>
<li>
The rental is above market, and likely to fall when the lease expires;
</li>
<li>
The property is purpose-built, and only suitable to a narrow range of alternate uses;
</li>
<li>
The building itself is obsolete, and would soon in need of upgrading or replacement;
</li>
<li>
The tenant could be considered financially weak; or perhaps …
</li>
<li>
The property is currently occupied under a non-conforming-use permit.
</li>
</ul>
And so, it's important to users seek advice from your consulting team — to properly interpret the evidence you have available.
The bottom line is you must not simply accept every passing yield as "reflecting the market", whenever you're looking for comparable sales.
Instead, make sure you look behind each and every sale. And you need to discover whether the rental was at market level; the tenant and lease period were secure; or if there may have been any hidden potential for further development.
 
<hr>
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a target="_blank" rel="nofollow" href="https://property-edge.com.au/">Property Edge Australia</a> to help you get the most out of your commercial property investing.
 
</body></html>

Should you ever accept a lower yield? Chris Lang 

<html><body>
Recently, there was an article focusing upon how much the government could save in rent through more efficient use of the office space it occupies.
But let's perhaps look a little wider than that, because over the past decade many major companies have been adopting an activity-based workplace format.
By using this campus-style approach, staff are being provided with a laptop and a locker,  but are not allocated any specific desk.
In Melbourne, the trend has mainly been unfolding within the Docklands with companies like NAB, Telstra, ANZ, Suncorp and Fairfax having all relocated their main offices there. In fact, NAB is currently in the process of filling its second Docklands building — this time in Bourke Street.
So, why is the trend occurring?
<img src="/images/stories/2013/08/lang_aug_14_graph.jpg" width="470" height="266" alt="lang_aug_14_graph">
Source: Jones Land LaSalle, Deloitte Access Economics, The Age.
As you can see from the above graph, workspace ratios (ie: space occupied per employee) has been progressively falling over the past 20 years. But more recently, the trend has been driven by this activity-based approach to tenancy layouts.
Clearly, these larger companies will not need to occupy as much space, if they:
<ol>
<li>
No longer allow for individually-petitioned offices; and
</li>
<li>
Only provide seven desks for every 10 staff members.
</li>
</ol>
What does this mean for landlords? 
Effectively, you are now witnessing the concept of an open plan layout on steroids and obviously, that will translate into bottom-line savings in the annual rent bill.
When the GST was first introduced, there was an initial one-off surge in inflation and similarly, there will need to be a one-off adjustment in the space requirement in these recent new lettings for these larger companies.
As you can appreciate, there are significant upfront costs involved before tenants can achieve these resultant savings in rent. Therefore, according to Jones Lang LaSalle, the targeted "efficiencies" are realistically available only to tenancies of at least 3000 square metres.
As such, there are some existing CBD landlords who will need to cope with the initial impact of this workplace trend and in the process, creatively retro-fit the space being vacated — if their tenants do decide to relocate.
The bottom line is you need to keep in mind that just under half of all CBD tenancies are too small to derive any benefit from an activity-based layout.
Plus, there are a number of pundits who still doubt whether this new trend will deliver anywhere near the expected gains in staff productivity.
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a href="https://property-edge.com.au/" rel="nofollow" target="_blank">Property Edge Australia</a> to help you get the most out of your commercial property investing.
This article originally appeared on <a href="https://his-best.biz/" target="_blank">Commercial Property Made Easy</a>.
</body></html>

Activity-based workplace formats translates to bottom-line savings, but requires the space to implement

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.

<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/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News