<html><body>
The large format retail property sector will likely not be able to sustain the strong growth trend of 2016 as weakening consumer demand for household goods is likely to hurt the sector in the near term, according to new research.
Last year saw a fall in vacancy rates at retail centres, while rental growth was the strongest since before the GFC, investment yields firmed on the back of record investment transactions, and double-digit total returns were recorded. But these buoyant conditions will not be sustained, says research firm BIS Shrapnel’s latest Large Format Retail Property report.
Report author Maria Lee, senior project manager at BIS Shrapnel, notes that the key drivers of consumer demand for household goods—which accounts for the majority of floorspace in large format centres—are either already weak or have started to weaken. Sluggish economic growth and subdued consumer sentiment are likely to continue for some time. 
Meanwhile, housing commencements and alterations and additions activity have peaked, while turnover of existing dwellings fell sharply in 2016. 
“We’re already seeing the effects in turnover data, which has slowed sharply in recent months” says Lee, qualifying that “the larger retailers and chains are holding up better, but they aren’t immune.” 
Chart below shows the slowdown in demand.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/BISShrapnel-chart.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/20/BISShrapnel-chart.png" alt="">
Meanwhile, the closure of Masters and planned reconfiguration of most of its stores into large format centres with an internal mall will cause a spike in ‘new’ supply of centres. 
“There’s still a lot of uncertainty at this stage regarding the fate of the ex- Masters stores. However, if we take at face value Home Consortium’s plans, and allow for Bunnings to take some of the vacant stores, there could be up to 700,000 square metres of ‘new’ centre floorspace as well as new development on sites owned by Masters,” said Lee.
BIS Shrapnel says this represents several years’ demand even allowing for the ‘transfer’ of turnover from Masters to replacement retailers. The report cautions that, at a time of softening demand, the sector could have trouble absorbing the floorspace and forecasts rental growth to weaken. 
On a more positive note, the report predicts stronger consumer spending growth in the longer term and a continued expansion of the retailer pool that large format centres tap into. 
“The sector continues to evolve. Large format centres offer relatively cheap space that is attractive to a range of uses. Some centres are morphing into mixed-use, lifestyle or even convenience centres” says Lee. 
Overall, BIS Shrapnel forecasts internal rates of return of around 10 percent over a five or 10 year investment horizon. This compares well with other shopping centre types and property classes. 
</body></html>

prateek24-ezbwHMbNAk

Large format retail property to take a breather after strong growth in 2016: BIS Shrapnel

<html><body>
A waterfront residential development site on 11 hectares set in Sydney’s prestigious Eastern Suburbs has been listed for sale and is expected to sell for more than $280 million. 
Located off Anzac Parade in Little Bay, Little Bay Cove features more than 11 hectares of land including civil works complete along with masterplan development consent which allows for immediate commencement. All remediation, site works, roads, park landscaping and infrastructure have been completed. The site is fully serviced with all required amenities, including water, electricity and gas, according to a media release.
The sale, through an expressions of interest campaign launching February 28, is being managed by Knight Frank’s Tim Holtsbaum and Eugene Evgenikos along with JLL’s Ben Hunter and Sam Brewer.
Holtsbaum said the site is one of the last Eastern Suburbs coastal subdivisions available for development.
“We’ve seen some large residential site sale transactions occur nearby in the South Sydney market but nothing of this prestige, with the coastal lifestyle and beach views,” said Holtsbaum.
“We expect Little Bay Cove to generate significant interest from both local and offshore developers due to its unique characteristics. It is located just 20 minutes’ drive from the Sydney CBD, near all transport and amenity, and is nestled along Sydney’s iconic beaches, stretching from Bondi, Bronte, Coogee and out to Little Bay.”
Fronting Little Bay Beach, the site neighbours four of Sydney’s premium golf courses, including The New South Wales Golf Club, St Michaels Golf Club and the Coast Golf Club. Express bus and future light rail services provide convenient transport to the CBD.
</body></html>

Residential site with approval in Sydney's Little Bay on sale with $280 million hopes 

<html><body>
Developer Mirvac posted a 7 percent rise in profit for its first half ended December 31, capitalising on a record $3.1 billion of residential pre-sales, while its CEO Susan Lloyd-Hurwitz used the occasion to bat for a taskforce to tackle housing affordability.  
Mirvac said statutory profit increased to $508 million from $473 million over the comparable period, while revenue was up 17 percent to $1,36 billion. 
The company announced a half-year distribution of 4.9 cents per stapled security to unit holders and said it would deliver a growth of 9 percent to 11 percent for the full financial year.
CEO and managing director Lloyd-Hurwitz said the company had “delivered a solid set of results in the first half of FY17.”
In its results presentation, Mirvac said it secured future income with a record $3.1 billion of residential pre-sales, while settling 977 residential lots and was on track to settle over 3,300 lots in FY17. The majority of settlements are expected in the second half of the financial year that ends June 30, 2017.
On defaults, Mirvac said the default rate was 2% till January 31, with average price $675,000 per lot, although more than 70% defaults were re-sold with “financial upside”.
She was cited by The Australian as saying that an inclusive taskforce was needed to make housing more affordable. 
“Crisis is a strong word, but when Sydney is the second-most unaffordable city in the world I think it’s probably a justified term,” Lloyd-Hurwitz told The Australian. “It’s something we need to address holistically.”
Sydney was recently ranked second behind Hong Kong in terms of affordability for home buyers, in a study by Demographia. 
Earlier this week, former RBA governor Glenn Stevens was taken on board by NSW Premier Gladys Berejiklian to advise the government on housing affordability.
“We don’t build enough housing for people to come to Australia. There are a whole host of issues around planning, tax — a whole host of issues that need to be thought through,” Lloyd-Hurwitz said. 
</body></html>

Mirvac posts solid first half results, CEO bats for housing affordability taskforce

<html><body>
Buy an apartment in Brisbane and get guaranteed rental income for a year, 3 years or even more, scream ads by developers on various websites targeted to property investors.
Sounds like a good deal? But as the adage goes, if it's too good to be true, it probably isn't.
Promises of such guarantees are sometimes used by developers to lure investors to a weak market or masking an overpriced offer, warns a post on hotspotting.com.au.
CoreLogic's Cameron Kusher noted in a <a href="https://blog.corelogic.com.au/2016/10/differences-unit-supply-sydney-compared-melbourne-brisbane/" target="_blank">blog post </a>in October 2016 that "Brisbane is set to see the biggest uplift in total unit stock followed by Melbourne and clearly in more immature unit markets this carries a risk".  
He highlighted inner-city locations in Melbourne and Brisbane as carrying the most risk from an oversupply of units. If everything is built over the next 24 months, unit stock in Brisbane Inner will increase by 33.6%, it will rise by 33.3% in Inner-North and by 32.5% in Holland Park-Yeronga.
This contrasts with 21.1 percent for Melbourne City and 10.4 percent for Inner-City Sydney.
Without passing judgement on the ads or the claims, Property Observer found a few offering rental guarantees in Brisbane.
Polo on Kingsley, a collection of three-bedroom townhouses starting from $699,000 in the Brisbane suburb of Yeronga promise a 5 percent rental guarantee for 12 months. The project is being undertaken by Polo Development Group and marketed by McGrath Projects.
Another builder, Dwyer Quality Homes, which has projects in Brisbane, the Sunshine Coast and Gold Coast, is offering three-year rental guarantees.
It also has an FAQ section that explains the scheme and lists all the positives. The website says the income “gives you guaranteed rental income and ensures peace of mind with your new investment.”
Sometime back, Domain reported that apartments were released in a 45-unit, nine-storey block The Woodstore with a <a href="https://www.domain.com.au/news/rental-guarantee-for-investors-in-new-brisbane-project-20150408-1mg26y/">6 per cent rental guarantee</a> for 12 months for the first five buyers… check status of that…
The two-bedroom apartments start at $450,000 in the development in Chermside, 9 km north of the city’s CBD.
“Chermside has such a strong rental market, with a lot of demand for properties – especially new ones! – that this sort of rental guarantee is no issue for us at all,” Murray Thornton, managing director of DevCorp, was cited as saying by Domain. 
There are a number of rental-guarantee investment ads on Gumtree as well.
One such ad is for <a href="https://www.propertyobserver.com.au/https://www.gumtree.com.au/s-ad/brisbane-city/property-for-sale/sky-tower-cbd-tallest-building-rental-guarantee/1138569153" target="_blank">Skytower at 222 Margaret Street</a>, which will be Brisbane’s tallest building when completed. Apartment prices start at $471,000 and comprise one, two and three bedroom apartments. 
Another seller has advertised for the luxury <a href="https://www.propertyobserver.com.au/https://www.gumtree.com.au/s-ad/newstead/property-for-sale/5-rental-guarantee-luxury-inner-city-investment/1136778752" target="_blank">Newstead project</a> where apartments are available in one to three bedrooms. The advertised price is $450,000 and upwards, and there is a 5% rental guarantee upon settlement. 
<img src="https://www.urban.com.au/images/2017/02/16/BrisbaneCoreLogic.png" alt="">
Rental guarantees or a trap?
Terry Ryder’s <a href="https://www.hotspotting.com.au/news/be-careful-with-rental-guarantees">Hotspotting</a> outlines a scenario of the trap behind rental guarantees.
“Developers offer them when they're struggling to sell apartments at the prices they want,” the post says. 
This is how they work:
A developer has a block of 100 units and wants to sell them for $350,000. But because it’s an oversupplied market, their true value is only $300,000 and it will earn a rent of only $300 per week. At a sale price of $350,000, the investor's gross return is only 4.5%. 
Investors won't be drawn in by those numbers.
So the developer offers rental guarantees to lure investors. He keeps the pricing at $350,000 and offers a rental guarantee $400 per week for two years. This provides a return of 6%.
For an investor, 6% is attractive and he also see two years of income security. However, the developer will lease the unit for $300 because it’s the market rate and pay the $100 shortfall to the investor. This costs the developer a little more than $10,000 over two years.
But the developer has been paid $350,000 for a unit that's worth only $300,000. He's $40,000 in front. For 100 units, he's made an extra $4 million by selling units for more than they're worth.
But the real pain for the investor starts after the two-year agreement expires. The investor has to find tenants in the open market which is oversupplied and he will in all likelihood not get more than $300 per week.
The investor's return falls to 4.5% from 6% overnight. Under the developer's guarantee, the investor was earning $21,000 a year. Now he's earning less than $16,000.
To compound the pain, the value of the unit has fallen because the income has fallen. If the investor decides to sell, he's competing with developers selling new units with deals guaranteeing a 6% return. The investor has to match that if he hopes to sell.
At $300 per week rent, the unit is worth only $260,000 in the open market (at 6%).
The investor’s annual income has fallen $5,000 ($21,000 - $16,000) while at the same time his unit is worth $90,000.
 
</body></html>

Rental guarantees for units in Brisbane... too good to be true?

<html><body>
Commonwealth Bank’s half-year earnings have put it firmly on course for a record $10 billion profit for the full year, even though the lender recently restricted loans to refinancing for investors.
The bank’s profit rose 6 per cent to $4.9 billion in the first half, of which half came from the retail banking side, which is where the home loans are concentrated.
The bank advanced 140,000 new home loans, including 15,000 for first home buyers, it said in a media release.
On the recent move to restrict refinancing of investor loans to new customers, CBA chief executive Ian Narev told 2GB’s Ross Greenwood that the lender crossed the APRA’s 10 percent growth cap for lending to investors for the year and had to be peg it back.
“We went over the limit and we made it quite clear we went over the limit…we just had to take a couple of steps to make sure we remain within that regulatory limit,” said Narev.
Australian Prudential Regulation Authority chairman Wayne Byres had said late in 2016 that bank stability had been well served by the 10 per cent growth cap imposed on bank investor loan portfolios, with actual rates of growth around half that rate. 
On increasing interest rates for investor-only loans, Narev said rates are independent of the results, “simply because it responds to a regulatory requirement to keep our lending growth in investor loans below 10 pct a year”.
When pressed further about stopping refinancing of investor loans, he said the bank’s “No. 1 priority is that we’re there for existing customers” and that CBA is just “trying to be prudent in this environment”. He said new investor loans for refinancing wouldn’t be done through the broker channel.
The group’s statutory net profit after tax (NPAT) for the half year ended 31 December was $4,895 million, a 6 per cent increase on the prior comparative period. Cash NPAT was $4,907 million, an increase of 2 per cent on the prior comparative period. 
Its Board has announced an interim dividend of $1.99 per share, a 1 cent increase on the 2016 interim dividend. The interim dividend, which will be fully franked, will be paid on 4 April 2017 with the ex-dividend date being 22 February 2017. 
According to The Australian, CBA will be the second company in Australia to report a $10 billion profit for a year. Mining giant BHP reported $US15.9 billion in 2012.
In operating income terms, retail banking reported $3.9 billion in the first half, followed by business and private banking at $1.2 billion.
</body></html>

CBA lending just to its own customers after investor lending exceeded APRA directive

<html><body>
The popular Woodfrog Bakery has moved into Camberwell to open its seventh Melbourne shop in a deal brokered by Fitzroys. 
The bakery, which started its story from a vacant furniture shop in St Kilda, took the lease for ground floor space with extra first floor space at the rear of 570 Burke Road, Camberwell at $80,000 per annum net. 
The 81 sqm Camberwell site will join the bakery’s existing sites in St Kilda, Toorak, Kew, Melbourne CBD, Brighton and Doncaster. 
Fitzroys Chris James negotiated the five-year lease with options.
James said the bakery was keen to place itself in a high foot traffic location, with the property fronting the Camberwell Fresh Food Market, Target, Coles and Market Place car park, and positioned amongst the popular retail offerings of Burke Road.
“The large number of recently completed medium and high-density residential developments in the area, and high number of apartments in the pipeline are further underpinning the demand from for tenants for a presence on Burke Road.” 
</body></html>

Melbourne's Woodfrog bakery leases into Camberwell 

<html><body>
DEXUS Property Group’s statutory net profit fell more than 10 percent for the half-year ended December 2016 from the previous corresponding period, though the company raised its market outlook for the 2017 financial year.
The group, which invests directly in Australian office and industrial properties, said its development and leasing activities offset the impact of asset sales.
DEXUS’s underlying business (excluding trading profits) delivered FFO (funds from operations) per security of 29.7 cents, up 10.6% on the previous corresponding period. 
Statutory net profit after tax of $716.0 million was hurt by lower revaluations and lower trading profits which also drove down FFO, Adjusted Funds from Operations (AFFO) and distribution compared to the previous corresponding period, it said in an ASX release.
<img src="https://www.urban.com.au/images/2017/02/15/DexusFinResults.png" alt="">
The group said it settled on $688 million of asset sales, including the sale of 39 Martin Place, Sydney.
“We have significantly reduced our gearing as a result of the settlement of asset sales over the past six months,” said Alison Harrop, the chief financial officer. 
 <img src="https://www.urban.com.au/images/2017/02/15/DexusGearing.png" alt="">
Chief executive Darren Steinberg said: “Income growth from leasing activity and development completions during FY16 helped to offset the impact of recent asset sales, driving a solid underlying result.”
“We’ve progressed priority projects in our trading pipeline as well as opportunities to restock the future pipeline and we’re confident that the remaining forecast trading profits will be realised in the coming months, delivering on our FY17 target.” 
Dexus said it delivered “a strong” one-year total return of 13.9% across its office portfolio, helped by strong leasing deals in Sydney and gains from the sale of investment properties.  
It started construction of the core of 100 Mount Street, North Sydney and added new projects to the uncommitted development pipeline including 201 Elizabeth Street, Sydney.
Dexus has $22.7 billion of assets under management. The group manages an office portfolio of 1.7 million sqm primarily across Sydney, Melbourne, Brisbane and Perth. 
“While property fundamentals continue to improve in Sydney and Melbourne, we expect to see underlying valuation assumptions improving and further capitalisation rate compression for Prime properties over the next 12 months which will continue to support values in our key markets over 2017,” Steinberg said.
In summary, Steinberg was optimistic, saying Dexus has raised its market outlook for growth in underlying FFO per security from 3.0-3.5% to circa 4%, growth in FFO per security to circa 1% and distributions will be paid in line with free cash flow, delivering distribution per security growth of 3.5-4.5% for the 12 months ending 30 June 2017.
<img src="https://www.urban.com.au/images/2017/02/15/DexusPortfolio.png" alt="">
 
</body></html>

Dexus first half profit falls 10 percent, hurt by lower revaluations

<html><body>
Brisbane’s office market has crossed the low point in the cycle and is starting to show signs of a recovery, according to the latest office market report by Cushman &amp; Wakefield.
Queensland’s economic growth suggests tenant demand should continue to gather momentum, in spite of the fact that H2 2016 net absorption is estimated to be lower than the surprise H1 2016 result, the commercial real estate firm adds in its Q4 office market outlook.
Brisbane saw 190,000 sqm of new supply in 2016. Most recently 1 William Street (75,000 sqm) was completed in Q4, which is fully occupied by the Queensland government and largely represents the end of the current supply cycle with only the refurbished 310 Ann Street (18,400 sqm) scheduled for 2017. 
<a href="https://www.propertyobserver.com.au/images/2017/01/11/Q4BrisbaneEffectiveRent.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/11/Q4BrisbaneEffectiveRent.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/01/11/Q4Brisbane-NetAbsorption.png" target="_blank">Click to enlarge </a>
<img src="https://www.urban.com.au/images/2017/01/11/Q4Brisbane-NetAbsorption.png" alt="">
There will be stock withdrawals of nearly 130,000 sim in 2017 leading to net-negative supply of 112,000 sqm over the year, says the report. In line with this, prime gross effective office rents are trending sideways. Following a 5.2 percent decline in 2015, rent decline moderated to 0.8 percent in 2016. 
Cushman &amp; Wakefield says its base case scenario of a U-shaped recovery in Brisbane looks set to continue, a view further bolstered by the results in its “Office leasing trends and outlook” survey in which respondents expected vacancy to decline to 14 percent over the next year. 
<a href="https://www.propertyobserver.com.au/images/2017/01/11/Q4Brisbane-KeyDeals.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/11/Q4Brisbane-KeyDeals.png" alt=""> <img src="https://www.urban.com.au/images/2017/01/11/Q4BrisbaneProjects.png" alt="">
Improvements to Queensland’s State Final Demand and strengthening commodity pricing provides upside potential for tenant demand. Queensland’s State Final Demand rose a modest 0.1 percent in the quarter ended September. “However, given the high level of vacancy, the market will continue to favour tenants over the near-term,” the outlook concludes. 
</body></html>

Brisbane's office market showing signs of recovery: Cushman & Wakefield

<html><body>
Melbourne’s appetite for Woolworths supermarket investments shows no signs of passing.
While the sale of Woolworths Glenroy for about $9.8 million was recently announced, an off-the-plan opportunity at Brunswick has just been listed.
Both were brought to the market through CBRE.
A group of local private investors has snapped up the freestanding Woolworths Glenroy for $9,750,000, reflecting a tight yield of around 4 percent.
Positioned in the northern suburb of Glenroy, the Woolworths supermarket has a remaining lease term of three years. 
The deal follows the sale of Woolworths Middle Brighton which transacted for $32,080,000, at a yield of 3.77 percent, in 2016.
CBRE’s Mark Wizel, Justin Dowers, Kevin Tong and Joseph Du Rieu steered the latest sale campaign. 
“The level of enquiry and interest that we experienced from buyers during the sales campaign was extremely positive, particularly given the short remaining lease term and the prospect of a decline in the turnover rent,” Wizel said.
Dowers said the rental agreement was based on a low base rental, with a significant proportion of the income derived from turnover rent. 
Although rival Coles Coburg North has impacted Woolworths Glenroy, Dowers said investors were ultimately attracted to the opportunity of owning a Woolworths supermarket only 16 km from the Melbourne CBD. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/13/WoolworthsGlenroy.jpg" alt="">
Meanwhile, the first Woolworths investment opportunity of 2017 has also been listed. The Woolworths Metro supermarket, Brunswick will be sold off-the-plan and is estimated for completion in 2018.
Pace Development Group are set to sell the ground floor Woolworths Metro Supermarket.
The Woolworths Metro store at 808-818 Sydney Road, Brunswick, will service 86 residential apartments on the seven upper levels of the property. 
CBRE’s Victorian Retail Investments team lead by Mark Wizel, Justin Dowers and Joseph Du Rieu are looking after the sales campaign.
Duane Vella, commercial development manager at Pace, said; “Given the 86 apartments that will be constructed above the supermarket are now sold out, we are confident investors will be eager to secure the retail component as a long term investment.”
Vella said Pace has managed the project in partnership with Woolworths from design to completion which should appeal to the buyer market.
Dowers said there is an increased demand for highly secure retail investment properties being sold off the plan. In the past 18 months the market has seen the sale of Woolworths Launceston, Woolworths North Caulfield and a Bunnings in Yarrawonga all off the plan.
“The pending sale of Woolworths Brunswick is the first metropolitan supermarket in Victoria to be offered to the market since Woolworths Middle Brighton was sold for a record yield of 3.77 percent by CBRE in June 2016.”  
The property will be sold by way of an international public expressions of interest, closing in late March 2017.
 
</body></html>

Investors make a beeline for Woolworths stores in Melbourne

<html><body>
A growing regional economy, driven by rising tourism numbers and major projects, has Whitsundays Airlie Beach poised as a lucrative opportunity for property investors, according to real estate group PRDnationwide.
All the key drivers of a rising property market are in place and properties are selling at the fastest pace in nine years, says PRDnationwide Whitsunday principal Christie Leet.
“Activity in the property market picked up to a good pace in the second half of 2016, pushing the Whitsundays into a balanced market and ready for another major upswing (after nine years of weak prices),” said Leet.
“The Australian dollar has stabilised at a level that entices overseas visitors and we have domestic visitors taking advantage of low airfares and increased capacity.
“Properties are selling quickly again and the excess housing and rental stock has all but vanished.”
Also, land is limited in the Whitsundays, with much of it taken up by Conway National Park and the last beachfront blocks that can be developed on the Whitsunday Coast are now under construction at Funnel Bay.
“With major construction and refurbishment projects under way or about to begin, there will be even greater demand for housing as construction workers move into the region,” he said.
The Whitsunday Coast Airport has an expansion project on the table with a $59 million masterplan, including plans for the introduction of international flights.
Redevelopments at Daydream Island Resort ($30 million) and South Molle Island ($200-$300 million), as well as a $600 million redevelopment at Lindeman Island Resort, are fuelling jobs growth on the Whitsunday Coast.
Leet said the start of construction at the Adani Carmichael Coal Project, a $16 billion investment in the Central and North Queensland economies, and the reopening of the Collinsville mine, which is in the Whitsunday Shire, would provide even greater demand on housing in the Whitsundays.
“The workforce will be fly-in-fly-out and we have seen in the past that miners like to set up a home base where the family can enjoy the best North Queensland has to offer,” he said.
“Thousands of miners and their families will also be looking for somewhere to relax and enjoy their time off without having to travel too far.”
Tiger Airways is adding 110,000 extra seats into the Whitsundays from March and Jetstar has announced they will add another 65,000 seats into the Whitsundays from April.
Census 2011 results from the Australian Bureau of Statistics indicate that the construction, transport and utilities sectors employ the most permanent residents in the region combined.
According to Queensland government estimates, the Whitsunday region had a resident population of 34,016 as at June 2013. Medium population projections suggest the region may experience average population growth of 2.1% (or 691 persons) per annum over the next two decades, with an estimated resident population of 49,700 persons by the end of 2036. Based on an average household size of 2.4 persons per residence, this level of population growth may yield demand for an additional 288 residential dwellings per annum over the same period. With the average number of new dwelling approvals for the last 5 years at 173p.a, this leaves an expected shortage of 115 dwellings per year. This shortage will push house, land and rental prices upwards as the demand increases.
“The lifestyle benefits of the Whitsundays, represented by the Great Barrier Reef, the islands, beautiful beaches (including one of the world’s best), and natural environment, are well documented and have helped the region become the number one Great Barrier Reef destination.”
But it is the underlying strength of tourism and the local economy, combined with the timing of the market, that is behind the sudden move in the property market.
“The all-important construction industry is ramping up with key projects already under construction or about to start but the low vacancy rates are creating the demand needed for more accommodation projects to come online,” Leet said.
</body></html>

Whitsunday's growing economy puts property back in overdrive: PRDnationwide

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>.

Prateek Chatterjee

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News