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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

For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

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According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

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Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

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Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

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Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

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Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

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Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

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Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

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Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

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Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

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La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

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<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

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Staff reporter

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