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Perth's the first major office transaction of the year, The $86 million sale of ENI House, paves the way for a billion-dollar 2019, according to CBRE.
The seven-level, A-grade office building, located at 226 Adelaide Terrace in Perth’s eastern CBD precinct, is fully leased to the Federal Government and corporate tenants.
These include Wood &amp; Grieve Engineers and ENI Australia Ltd.
CBRE’s Aaron Desange and Flint Davidson, jointly with JLL’s John Williams and Sean Flynn completed the sale to WA-based property fund manager, Primewest.
Mr Desange said “The lease expiry profile of ENI House was a major drawcard for investors, with it providing ideal timing to capitalise on improving market conditions over the next two – three years, when the office leasing market will not only be more robust, but in a strong growth phase."
Mr Williams said Western Australia would continue to be a preferred destination for offshore investment in 2019, with several Asia Pacific capital cities close to approaching their peak in the cycle.
“In Perth specifically, Asian investors have dominated the value-add space, as they are able to be more aggressive in deals with vacancy risk or capital expenditure requirements through their cheaper cost of capital. They are also attracted to our low sovereign risk and comparatively high yielding assets,” he added.
CBRE Research expect Perth to benefit from a strong spike in rental growth over the next five years – more so than any other Australian city.
Over the next three years, premium net effective rents are forecast to increase by 56.3% and A-grade rents are tipped to lift by 41.6% - largely due to a reduction in incentives.
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j.ballantyne1990-6AQqhLzZaK

ENI House is Perth's first major office transaction of 2019

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EXPERT OBSERVER
More and more evidence. Inflation across Asia keeps sliding. India's dipped further in January to a touch above 2% y-o-y. In China, the PPI barely held in positive territory last month, and consumer inflation cooled again. It's easy to shrug it all off as a temporary drag from lower oil prices and well-behaved food cost. But that's not the full story: underlying price pressures are remarkably soft as well and broadly falling. As a result, real interest rates continue to climb and the region's already substantial debt load becomes harder to service. The case for further monetary easing may thus become more pressing, even if in itself this may not be enough to push up growth materially.
You will have seen the headlines. Over the past week alone, both India and China reported remarkably subdued inflation. In India, the headline CPI is running at close to half the central bank's mid-point target. True, core prices are well above this (around 5.4%), but that was down from a 6% handle. In China, PPI inflation, a good proxy for industrial profits, has essentially stalled and the headline CPI hit 1.7% (though core nudged up to 1.9%).
Elsewhere, the trend is much the same: from Indonesia to Thailand to Korea, including Japan and Australia, and everywhere in between, inflation is running short. Even in the Philippines, which saw a sharp spike last year, it's rapidly coming off the boil.
It's tempting to attribute much of this to falling oil prices. And as these are now ticking up, that drag is bound to reverse. Plus, food inflation has been remarkably subdued across the region of late (keep an eye though on the return of El Nino this year).
However, core inflation is running at a fairly tepid pace in most places, or at least showing signs of slowing substantially. From a broader perspective, in fact, it is remarkable that the synchronized global upswing in 2016-2017, followed by last year's exchange rate stumbles and, temporarily at least, soaring oil prices, didn't deliver a bigger inflation kick (see also We got an inflation problem, 10 December, 2018).
That means that the "jumping off point" for inflation as growth continues to slow is dangerously low, risking, if not outright deflation, a prolonged period of extremely subdued price pressures.
That poses two big challenges for Asia.
First, it pushes up real interest rates as low (or even lower) inflation increasingly pushes down inflation expectations. And with nominal rates already near record lows in many places, there's little that a loosening in monetary policy alone can do to correct this.
Second, and related, the debt service burden increases as inflation falls short. Even if inflation expectations, which determine the real interest rate, don't fall further, lower realized inflation makes it harder to service debt already taken out. And since the region has splurged on the stuff in recent years, falling price pressures can thus act as a powerful drag on growth.
What, then, are the policy options?
Monetary easing is the obvious one. But, as mentioned, this has started to run into "diminishing returns": with interest rates already low, further cuts will provide only a limited boost. Ideally, this should be complemented by fiscal easing. And in a few places, notably China, that's exactly what's occurring. But, more broadly across Asia, the policy room for a significant fiscal kick is limited (see How much policy room?, 28 January, 2019).
Further out, Asian central bankers will also need to think about more unorthodox policies. If rate cuts alone don't do the trick, and fiscal support isn't readily available, at least in sufficient size, the entire tool box of policies tried out in advanced economies over the past decade should be on the table: from targeted lending schemes to aggressive base money expansion.
Granted, these didn't work necessarily all too well in all instances. And emerging Asia isn't quite yet so demand deprived that it's about to fall into a deflationary trap.
Yet, given the growing risks of such a stumble, it's probably best to act pre-emptively.
Cuts anyone?
Frederic Neumann is Co-head of Asian Economics Research at HSBC.
 
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The dangerous inflation fizzle: Frederic Neumann

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Developer Consolidated Properties Group has recruited industry professionals for three key roles.
The recruits, Chelsey Blount, Clinton Amble and Rob Clifton (pictured left to right) will take on major roles in retail, development and marketing. recruits have been appointed as
Consolidated Properties Group is entering it's 40th year, with a $2.1 billion portfolio of more than 200 residential, retail and commercial projects.
Chelsey Blount will run the company's communications strategy, utilising seven years of experience in the profession, most recently with Ray White and SSKB.
Rob Clifton has 20 years of experience in the retail leasing field, including senior positions with Stockland and QIC.
He has been appointed as National Manager for Retail Leasing.
Project Director Clinton Amble, formerly of Lendlease and Mirvac, has more than a decade of industry experience.
He will take charge of the developer's residential work book, including the $850 million Yeerongpilly Green urban village and the $600 million Cornerstone Living project in Coopers Plains.
Consolidated Properties Group Executive Chairman Don O'Rorke says all three appointments are a major coup for the company.
"As we have approached the 40 year milestone this year, it's the right time to ensure our most important asset - our team - is the best it can be, with the capacity and capability to drive future growth."
"The year ahead promises to be even bigger than 2018, which saw the launch of our new small commercial projects division, the start of upgrade and expansion works on three neighbourhood shopping centres in South East Queensland and the beginning of Yeerongpilly Green," he concluded.
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Developer Consolidated Properties Group expands team

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A 1896 five bedroom property at Bremer Bay which was as an integral part of the Overland Telegraph Line has been listed for sale.
It served as accommodation plus a transfer station for messages coming to and from South Australia to Western Australia.
The 3200km telegraph line connected Darwin with Port Augusta in South Australia in 1872, while an additional section was added in 1877 with the completion of the Western Australian section.
The Garnett family bought the property in 1946 for￡50 and the property at <a id="LPlnk899563" href="http://ecomms.raywhite.com/collect/click.aspx?u=jRYOrR8N39QzG/Nyy8oj1BNB9klqrP3Iwp8k3Re9J2XgydjgZ+Yvr7y3ouFzvnL9hDNVeaOI3Y6c6pTHKg61FCYqD0mBP178S6uslTCzaVA80fRB+PF/lNe7ryC5PjKAyQ3D9ASleqU=&amp;rh=ff004749e934e63e58afb3e3ec439e0203aa58d8" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">5 Bremer Road</a> was most recently used as a restaurant / cafe.
Ray White Rural Albany principal John Hetherington said there had been strong interest from locals looking to restore the property to it's former glory. "People love it as it's on more than 9000 sqm - it's a huge parcel of land - with views over the town plus the Bremer River," he said.
“Think of the history though, if only those walls could talk. I have see a similar telegraph house on the Nullarbor Plain but there’s nothing left there as the sand had overtaken the walls whereas this one is one of the only properties like it left in Australia.
<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/2019/2/19/NEW%203%20Bremer%20Bay%20Rd%205.jpg" alt="">
<div>“I often wonder what people would have heard coming through there from the eastern states.</div>
<div>
“The original telegraph house was built in 1876 until it burned down and this one was built in 1896 from local stone and has survived 123 years!
“Made with thick stone walls and magnificent jarrah floors, this piece of history needs to be seen to be believed. "It was most recently run as a restaurant with commercial kitchen and a cool room etc,” Mr Hetherington said.
The property goes to auction this Saturday February 23, 2019 at 1pm at Ray White Rural Albany, 96 Lockyer Ave, Albany, WA.
</div>
 
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Bremer Bay home that was an integral part of the Overland Telegraph Line listed

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A two-level, four-bedroom 2017-built house in Blackburn, Victoria has been just sold for $1.16 million by the mortgagee in possession.
It was listed by Patrick Mane and Rupa Mane from Raine &amp; Horne Blackburn. 
It had $1.4 million hopes when listed in early 2018.
Positioned in a quiet cul-de-sac location, the house at <a href="https://www.realestate.com.au/sold/property-house-vic-blackburn-130336706" target="_blank">2/7 Langtree Court</a> comes with two king sized bedrooms, other two additional bedrooms, large kitchen, formal dining room, large living room and fully-landscaped backyard.
Other features include video intercom, downstairs study, split system cooling/heating and a double garage.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><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/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
It's only a short walk to Blackburn North Shopping Centre and Whitehorse's Golden mile shopping strip, and within 5 minutes drive to the Eastern Freeway or Blackburn Railway station.
The median price for a home in Blackburn is <a href="/developments/blackburn-vic-3130">$1.31 million </a>according to CoreLogic, which calculate its annual change in median price over the past 10 years as 7.7%.
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Blackburn house sold by mortgagee for $1.16 million

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The Block contestants, Kerrie Charter and Spence Thomson, have listed in the Barossa Valley. 
Colliers International are selling the 42-acre lifestyle property.
It is located at <a href="https://www.realestate.com.au/property-lifestyle-sa-nuriootpa-700018218" target="_blank">191 Samuel Road</a>, half way between Nuriootpa and Tanunda.
The property backs onto Maggie Beer’s Farm Shop.
It is a stone’s throw from the likes of Penfolds, Seppeltsfield, Greenock Creek, Whistler Wines, Rolf Binder and Hewitson. 
Charter and Thomson bought the property three-and-a-half years ago, but only moved in two years ago after spending the first 18 months residing in Melbourne. 
The couple are selling their Samuel Road home to start their next project – building a new home of their own in South Australia. 
The expansive residence comprises the main home plus two private accommodation suites and gardens.
Previously utilised as ‘The Paddocks’ bed and breakfast, it presents an incoming purchaser a fantastic opportunity to redevelop completely, renovate or resume the bed &amp; breakfast business. 
Investors, developers, wine industry participants and speculators looking to capitalise on the obvious wine tourism potential are anticipated. 
<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/2019/2/26/C%20Large.jpg" alt=""> 
The main residence features two bedrooms, an open plan kitchen living and dining area with views to the vineyards in the east, plus separate bathroom and laundry.
Both suites feature kitchenettes and ensuite bathrooms with private garden outlooks, and there is an underground cellar. 
The land lends itself planting with Shiraz vines. 
Offers are due on 191 Samuel Road by March 13.
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The Block’s Kerrie and Spence to sell Barossa Valley home

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Hong Kong investor Foo Hang Jewellery (FHJ) has bought a Melbourne office complex for $314 million.
The purchase of 595 Collins Street in Melbourne from South Korea's National Pension Service, is the first time FHJ has invested in Australian property.
Comprised of two interconnected buildings, the 20-storey tower spans 3,778 square metres and includes three ground-floor shops and 145 basement car spaces.
Allens advised on all aspects of the purchase, including the contract negotiations and the Foreign Investment Review Board (FIRB) application.
"We were pleased to act for FHJ in one of Melbourne's largest commercial property transactions over the last year," said Allens’ managing associate, Tim Chislett (pictured below).
"Offshore investors are continuing to show strong interest in Australia's premier office towers and we were delighted to support FHJ with this acquisition," he said.
<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/2019/2/21/Chislett%20tim.jpg" alt="">
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595 Collins Street, Melbourne bought by Hong Kong investor Foo Hang Jewellery

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The plans for a new $300 million commercial project in the heart of Adelaide’s CBD have been revealed.
Located on the corner of Pirie Street and Freemasons Lane, on the former Planet Nightclub site, 83 Pirie will introduce approximately 30,000 square metres of A-grade office space.
The building, designed by Woods Bagot and developed by Cbus Property, will span 17 levels of office, as well as a 300 square metre rooftop terrace, an onsite wellbeing lifestyle centre and 365 square metres of ground plane retail.
The project will also have features such as electric car charging stations and of-trip facilities.
<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/2019/2/19/83%20PIRIE_CBUS%20PROPERTY_FACADE51.jpg" alt="">
Cbus Property CEO, Adrian Pozzo, said there is strong market demand for new, A-Grade commercial workspace in Adelaide.
“There is a distinct lack of supply for contiguous new built commercial stock in Adelaide’s city centre,” Pozzo said.
 “This demand is driven by positive employment rates and sustained spending across defence, renewable energy and technology sectors, including the implementation of the 10 Gigabyte Adelaide initiative, which indicates demand will only increase.
“We recognise that the workplace is changing and tenant requirements are evolving so it was an ideal opportunity to create a new benchmark for office design in Adelaide.
“Tenants are not only looking for innovative workspaces that offer flexibility and foster a collaborative and engaging work environment but also leading design incorporating innovative technology, sustainability and wellness initiatives which is exactly what 83 Pirie will deliver.”
<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/2019/2/19/83%20PIRIE_CBUS%20PROPERTY_LANEWAY61.jpg" alt="">
Andrew Beasley, National Director of Office Leasing at Colliers International, said tenants at 83 Pirie will benefit from heightened connectivity throughout Adelaide’s CBD.
“Over the past few years, we have seen an increased appetite from domestic institutional developers and investors in Adelaide, which was once traditionally dominated by private developers,” Beasley said.
“The shift from private to institutional investment has created new standards for building design and architecture and with only two new buildings to be completed this year and new supply for 2020 unlikely, tenant demand is strong.
“This combined with 83 Pirie’s highly efficient 1,750 square metres side core floorplates and exceptional views from the upper floors will appeal to a high calibre of commercial tenants, spanning major corporates and state and federal government.
“Ideally located in the heart of Adelaide, Pirie Street has unrivalled links to culture and lifestyle amenity, including popular eateries, which has seen it become known as the CLD.
“While it has a strong lifestyle offering, Pirie Street still remains an important part of the commercial district with corporate occupiers keen to have proximity to other professional service firms, car parking stations and the nearby retail amenity.”
83 Pirie’s design and architecture was will complement the existing streetscape and nearby heritage buildings, said Thomas Masullo, Director, Woods Bagot.
“83 Pirie’s bold form echoes the low-rise and heritage fabric of the high street architecture,” he said.
“Elevated above the podium, the tower rises to take its place in the city skyline, with repetition of angled glass panels across the façade creating an elegant and sophisticated design aesthetic.
“The tower will make an enormous contribution to the social and economic fabric of the precinct and our great city.”
Construction of 83 Pirie will commence once a pre-commitment is secured and is expected to take around two years to construct.
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Plans revealed for new $300 million Adelaide CBD office project

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GUEST OBSERVATION
It is clear to anyone that following significant rejuvenation, North Sydney CBD is still in a phase of substantial transition, led by the anticipated arrival of the Sydney Metro in 2024. The one thing the area needs to continue to evolve into a desirable, vibrant and well-functioning CBD is exceptional public space and more of it. Done well, these spaces will dramatically improve the vibrancy, safety, amenity, value and appeal of the CBD for all – from residents, visitors and students to workers and investors. 
Over the past six years, North Sydney Council has been working on strengthening the role of the North Sydney CBD as the principle economic engine of the North Shore. Following an audit by the Council of the public domain in 2015 and with funding from the NSW Government in 2018, Stage 1 of the North Sydney CBD Public Domain Strategy (PDS) ‘Place Book’ has been released. The PDS is specifically targeted at realising a more engaging and resilient CBD that offers a greater range of activities and unique public spaces for workers, residents and visitors alike. 
Over the next 20 years, the North Sydney CBD worker population is forecast to grow by more than 30% to over 80,000, with the residential population growing beyond 7,000. This growth will see more than 1,000,000 square metres of floor space by 2036. 
As the commercial and residential populations increase, so must the provision of additional public space.  
The ‘Place Book’ (Stage 1) is the initial ideas phase of the PDS and explores the future potential of public domain in the North Sydney CBD. It focuses on improving quantity, quality, connectivity and the interaction of cars, pedestrians, and cyclists of the public domain. More than 16,000 square metres of new public space has been proposed, in addition to upgrades to almost 21,000 square metres of existing public space. 
Major projects include:
<ul>
<li>Creating a new 6,500 square metre public plaza by pedestrianising the section of Miller Street between Pacific Hwy and Berry St that is directly outside the new Victoria Cross Metro Station. This will include a ‘scramble intersection’ allowing four-way crossing and the return of east-west (two-way) traffic on Berry Street between Pacific Highway and Miller Street;</li>
<li>Transforming Miller Street into a ‘Civic Spine’ through a suite of public domain upgrades between St Peters Park (south of Blue Street) and St Leonards Park (adjacent North Sydney Oval);</li>
<li>Creating a new 1,200 square metre Post Office Plaza, which will involve redesigning the intersection of Miller Street and Pacific Highway (removing small and dangerous refuge islands) and incorporating scramble crossing;</li>
<li>Converting the under-utilised deck of the tramway viaduct into a 3,500 square metre public space, similar to Sydney’s ‘Goods Line’ and New York City’s ‘Highline’; and</li>
<li>Upgrading Berry Street with 5,000 square metres of improved footpaths and squares, in addition to a new architecture offering incorporating shops and on street dining.</li>
</ul>
Council is also in the final stages of finalising its Ward St Precinct Masterplan, which will seek to create significant commercial floorspace in the precinct, as well as providing significant new public spaces.
Most of these projects are expected to be delivered in the next five years by 2024 to coincide with the opening of the Victoria Cross Metro Station. The tramway viaduct has a 10 year delivery plan. 
We expect the Council’s and proposed upgrades will instill confidence that the changes to North Sydney will continue to contribute the evolution strengthening of the CBD. 
We have seen the transformation of North Sydney translate through the commercial property market in a number of ways, including: 
<ul>
<li>Attracting new tenants into North Sydney from the Sydney CBD and surrounding suburban markets such as Chatswood and Macquarie Park. New commercial developments, including 100 Mount Street and 1 Denison Street, have signed tenants such as Nine Entertainment, who was originally based in Artarmon. </li>
<li>Increasing the amenity for existing tenants. North Sydney is already home to a number of global brands, such as Coca Cola, Vodafone, Sony and Genworth, that have, and will continue to, benefit directly from these improvements.</li>
<li>Enhancing capital values for existing land owners. Greater amenity and demand for office space has led to average prime gross face rents have increasing by 3.6% in the year to July 2018. This growth has translated into higher capital values for North Sydney landowners, with $1.26 billion ($10 million plus) of transactions occurring in the same period, according to Knight Frank Research.   </li>
<li>Institutions such as Charter Hall, Investa, Dexus, LGS and Mirvac are taking a real interest in the planning changes occurring in North Sydney and the impact this is having on their properties. </li>
<li>With North Sydney now considered an extension of Sydney CBD, a number of high net worth offshore buyers have purchased in the precinct. For example, the recent sale of 80 Mount Street attracted strong offshore interest due to its ideal location providing opportunities for the owner to integrate ground floor retail refurbishments into existing public spaces. </li>
</ul>
The proposed upgrades to the public domain in North Sydney CBD will stimulate future developments and attract new investment, vastly improving the streetscape and benefiting all those that utilise the space. 
Angus Klem is Partner, Head of North Sydney, at Knight Frank. He can be contacted <a href="https://www.knightfrank.com.au/contact/people/angus-klem-aun07179" target="_blank">here</a>.
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How North Sydney's planning changes will affect commercial real estate: Knight Frank

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The closed Watters Gallery building in East Sydney has been listed for the first time in more than five decades. 
It goes to March 14 Colliers auction.
The three-storey Victorian corner terrace was built in the 1850s.
It saw many exhibitions by many top artists, including Reg Mombassa.
Its long-time owners, Frank Watters and Geoffrey and Alex Legge, are retiring and moving to the country.
Colliers agent Miron Solomons said the gallery opened in 1968.
"It would be ideal for a really cool creative as a corporate HQ and is ready to be transformed into something a little bit unique," Solomons said. 
There is buyers’ interest above the $5 million mark for the 578-square-metre freehold building at 109 Riley Street, on the corner of Stanley Lane in East Sydney.
There is 578 square metres of space is the gallery that closed in 2018.
Solomons said it was originally the site of a boot warehouse in 1858.
It became the Victoria Hotel between 1863 and 1870, and from 1871 The Harp of Erin Hotel.
In 1921 the building was used as a shop with the flat above and then altered in 1968 to accommodate the gallery.
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Vacated East Sydney art space Watters Gallery to go under the hammer

Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.

From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.

“We know the buyer profile exceptionally well,” Abolakian says.

“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”

That buyer has historically been overwhelmingly owner-occupier driven.

Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”

[smartcode_project:default project_id=110379 project_image_fid=311393]

The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

[smartcode_project:default project_id=149594 project_image_fid=362634]

While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.

“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”

That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" />

The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”

Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.

“There are definitely people waiting,” he says.

“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”

Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.

Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.

Joel Robinson

Why Hyecorp continues to back Sydney's Lower North Shore apartment market

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

[smartcode_project:default project_id=135094 project_image_fid=356540]

Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

[smartcode_project:default project_id=150787 project_image_fid=366230]

While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

[smartcode_project:default project_id=143932 project_image_fid=367515]

The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

[smartcode_project:default project_id=4896 project_image_fid=368543]

The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

[smartcode_project:default project_id=4896 project_image_fid=368544]

Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

[smartcode_project:default project_id=4896 project_image_fid=368588]

Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

<section data-scroll-anchor="false" data-testid="conversation-turn-150" data-turn="assistant" data-turn-id="request-WEB:55d7c6ac-8e6d-4881-ad49-0ed9bf66d1cc-74" dir="auto">
Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
</section>

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Above Zero launches Camberwell House in undersupplied Camberwell Junction precinct

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

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CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

Staff reporter

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