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Centuria, now Australia’s largest office-specific REIT, has grown their portfolio to $1.4 billion, according to their half year financial results.
They also appointed Grant Nichols as new fund manager of CMA.
Mr Nichols, is an experienced fund manager with over 15 years of experience in Australian office markets.
He said “In the last year, CMA delivered 10.9% return on equity to unitholders, and is now Australia’s largest sector-specific listed office REIT"
“Having made CMA a pure-play in office assets, Centuria has continued to improve the quality of the portfolio – its delivery on strategy is evident in its strong returns to unitholders.”
“With a high-quality, fit-for purpose portfolio 89% weighted to the eastern seaboard and an average building age of 15.5 years, CMA is well positioned to capitalise on tenants seeking to expand or reposition across Australian metropolitan markets,” he concluded.
Over the past half year Centuria acquired a $521 million portfolio of four office assets which took the portfolio to $1.4 billion  (from $930.5 million at FY18) and made them Australia’s largest office-specific REIT.
They divested their remaining industrial assets, at "premium-to-book values".
Centuria retained high occupancy of 98.8% overall, with 100% occupancy throughout their WA, SA, VIC and NSW properties.
Over 14,500 sqm of net lettable area (6.7% of the portfolio NLA) was leased across sixteen transactions during the past half year – extending the WALE to 4.3 years.
The fund returned a statutory profit of $14.7 million in 1H19 and funds from operations of $26.5 million. 
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j.ballantyne1990-6AQqhLzZaK

Centuria now Australia’s largest office-specific REIT with $1.4 billion portfolio

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Dexus made a half yearly net profit after tax of $726.4 million, down 27%, mainly due to net revaluation gains of investment properties being lower, according to their half year results.
The funds from operation, the more accurate measure for real estate investment trusts, was $353 million, up 9.8 per cent on the previous corresponding period.
They have restated a goal/guidance for distribution per security growth of circa 5% for FY2019.
Dexus Chief Executive Officer, Darren Steinberg said it had been a productive six-month period where the company added value through enhancing our development pipeline and attracting new investors to our funds management business.
"This has all been achieved while maintaining low balance sheet gearing."
“In our office portfolio we continue to outperform the MSCI office benchmark over one, three and five years through driving higher rents and lower incentives, particularly in Sydney which has been reflected in property valuations during the period."
“In our funds management business, we now have $15 billion under management with investors and partners that can invest alongside us through the cycle, reinforcing our objective of being the wholesale partner of choice in Australian property,” he concluded.
<img src="https://www.urban.com.au/images/2019/2/6/Dexus%20Office%20Portfolio.JPG" alt="">
Funds from Operations (FFO) reached $353.3 million, up 9.8% on the previous corresponding period.
Gearing was down to 23.7% from 24.1% at 30 June 2018.
There was a one-year unlevered total return of 13% in the Dexus office portfolio and 15.5% in the Dexus industrial portfolio
Office portfolio occupancy increased to 97.3% with Sydney office leasing spreads of +18%.
The group’s $5.2 billion development pipeline progressed, replenishing both the industrial and office development pipelines.
Dexus established a new circa $2 billion unlisted trust that invests in Australian logistics properties seeded from Dexus’s existing portfolio.
They delivered $34.7 million of trading profits (post-tax).
Dexus shares closed up 1¢ to $11.85 per security.
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Dexus net profit down 27% due to revaluation on investment properties

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In the first half of the 2019 financial year the Commonwealth Bank's exposure to commercial property has remained flat, according to their mid year report.
The report note their commercial portfolio remains, diversified across sectors and by counterparty.
<img src="https://www.urban.com.au/images/2019/2/6/CBA%20Graph%203.JPG" alt="">
CBA have lower apartment development exposures.
Their top 20 counterparties are primarily investment grade (weighted average rating of BBB equivalent) and account for 16.4% of their Commercial property exposure.
34% of the portfolio investment grade, and the majority of subinvestment grade exposures are secured (91%).
<img src="https://www.urban.com.au/images/2019/2/6/CBA%20Graph%201.JPG" alt="">
Impaired exposures remain low, 0.12% of the portfolio.
Geographical weighting has remained steady during the half.
They have been continuing ongoing comprehensive market and exposure monitoring of the portfolio.
<img src="https://www.urban.com.au/images/2019/2/6/CBA%20Graph%202.JPG" alt="">
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Commonwealth Bank exposure to commercial property remains flat 

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Hollywood’s post-production and effects giant, Technicolor, has secured a 10 year lease for an Adelaide CBD office.
Technicolor be situated on levels seven, eight and nine of 178 North Terrace.
Their focus for this office will initially be on delivering visual effects (VFX) for major film studios and streaming services around the world.
Savills Australia’s Adam Hartley negotiated the 10-year lease term at circa $370 per sqm for the 4,200 sqm space.
Mr Hartley said it was a "game changer... Technicolor will create 300 to 400 new jobs, boosting the state’s economy, and reinvigorating the Myer Centre trading precinct".
“Ongoing support from the state government and local council will continue to entice a variety of companies to establish footprints in Adelaide."
“Financial incentives from the state government, combined with factors such as lifestyle, competitive business conditions and best in class internet connection via the Ten Gigabit Adelaide network.will become increasingly attractive to internationally based companies,” Mr Hartley concluded.
Technicolor was given a $6 million grant from the state’s economic investment fund and is expected to inject an economic benefit of more than $252 million into the city throughout the next 10 years.
Similarly, last year, Savills Australia negotiated a lease agreement for New Zealand-based technology company, Medi-Map, which also chose to set up shop in Adelaide with support from government funding.
Built Holdings Pty Ltd is constructing the fit-outs for the Technicolor space, which are currently underway and expected to be ready for operation in April.
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Savills arranges Adelaide CBD office space for global film company Technicolor

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A consortium of Queensland-based caravan operators has purchased a Coconut Grove, a Hervey Bay caravan park for $1.7M.
Situated at <a id="LPlnk448609" href="http://ecomms.raywhite.com/collect/click.aspx?u=jRYOrR8N39R+6hBQZ7yXMt0Z3VIjNMZGG0PvjSKt1HaLT2OpcdifYCcFNgBkWSIR&amp;rh=ff0046acf37dea1a46aeb74b69489dce64805f12" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">1-9 McLiver Street, Kawungan, Hervey Bay</a>, it is in the south-eastern corner of McLiver Street and Main Street.   The 1.9 hectare property was marketed and sold by Ray White Hervey Bay Principal Glenn Fallon.
Coconut Grove is comprised of 93 powered sites, most of which are vacant or occupied under various agreements for long-term residents. 
<img src="https://www.urban.com.au/images/2019/2/6/Coconut%20Grove%202.JPG" alt="">   Mr Fallon said there was strong interest from across the country with enquiry numbers well in to double figures.   He said, “there were six registered bidders on the day, with the starting bid at $1M, before climbing to its final selling price of $1.7M. There was a total of five bids during the auction."
“The Fraser Coast is a vibrant coastal area and is recognised as having the fastest growth rate on the eastern seaboard."   “Hervey Bay is the gateway to heritage-listed Fraser Island and Great Sandy Straits and boasts some of the best fishing, calm water boating and water sport activities in Australia."   “The climate in Hervey Bay is acknowledged by most southern investors as being one of the most liveable in Australia,” he concluded
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Kawungan caravan park Coconut Grove sold for $1.7 million

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The average Sydney strata office sale price is now over $1.5 million for the first time ever, according to Ray White’s upcoming Between the Lines commercial report. 
The research showed limited supply available for sale had increased competition and been instrumental in growing capital values into 2018, after stand-out increases in 2016 and 2017.
In 2018 $151.93 million dollars worth of strata office sales took place across 100 transactions.   Ray White’s Head of Research Vanessa Rader said “As vacancy levels continue to maintain a low rate across the broader Sydney CBD market, rents remain expensive, which has seen more occupiers looking to shelter from further increases."   “On a per square metre basis, the overall capital value saw an increase of 24.66 per cent compared to 2017's annual results, which is an average of $12,144 sqm (on an adjusted basis), more than doubling the value achieved in 2014." “In 2018 we've seen a greater volume of multiple purchases, where buyers are seeking to amalgamate adjoining lots. But despite this, the average sale size remains low at 124sq m, slightly up on 2017 result of 117 sqm."   “Turnover this period has been its highest in the Core sector, with the bulk of transactions occurring in quality strata buildings along Hunter and Pitt Streets, with many achieving new highs in capital value," she added.
Activity in the Macquarie and Elizabeth Street precinct increased this year.   Ms Rader stated, “The Core sector recorded $71.67M, followed by Midtown with $44.06M and Western Corridor $23.49M changing hands, while the Southern precinct, due to its limited stock, has recorded just $9.79M for the full 2018 calendar year.”   She added, considering the annual capital values by precinct, 2018 saw outstanding growth across all precincts, adding to the last five years where value increases had been substantial.   “Core continues to be the most expensive precinct which has increased to $12,877/sqm, up 14.36 per cent over the last year, followed by Midtown up 19.98% to $11,768/sqm,”   “A highlight's in the Southern precinct, achieving over $10,000/sqm for the first time. Over a five-year period, the growth in this segment of the market has been remarkable, particularly given the prolonged period where limited change occurred in values for this asset class.   “Overall, the Sydney CBD strata market has yielded annual growth of 27.69 per cent per annum, the most stable growth rate being in the Core sector, up 26.81 per cent per annum over this period,” she concluded.
<img src="https://www.urban.com.au/images/2019/2/6/wharf%201.JPG" alt="">
Ray White Commercial NSW’s Sales Director Strata Sales Christian Minards said the sale of King Street Wharf waterfront office at <a id="LPlnk910413" href="http://ecomms.raywhite.com/collect/click.aspx?u=jRYOrR8N39R+6hBQZ7yXMt0Z3VIjNMZGUHy3spBOCCc7XnQOC/I58CxewQ3EgnfeJc1IjKSaYe4=&amp;rh=ff0046acf478bab0e96fd8df2147b057fff2eec6" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">Suite 505/35 Lime Street</a> (pictured above &amp; title) was an example of the markets strength.
The sale price is believed to be around $2.6M to $2.7M.   Mr Minards said the sale represented a rate per sqm for the office component of over $14,630psqm, a record result for the development.   “The development of Barangaroo has created a surge in sale prices at King Street Wharf, which until recently have been priced at around $10,000psqm. We’re now seeing prices climbing to over $14,500psqm,” he said.   “The lack of supply of quality strata offices and strong demand from buyers is continuing to drive strata office prices."   “Suite 505 presented a highly sought-after opportunity within the tightly held King Street Wharf precinct and the opportunity attracted plenty of interest.”
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Average Sydney strata office sale price breaks $1.5 million: Ray White

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The nation's largest bank, Commonwealth Bank of Australia's has reported a 6 per cent fall in its net profit, hit by the costs associated with fixing historic misconduct issues and tighter margins due to competition and rising costs.
The CBA produced a weaker than expected result. 
First-half profit came in at $4.6 billion, down from $4.9 billion in the corresponding period last year.
<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/2019/2/6/CBA-1.jpg" alt="">
Cash profit — the bank's preferred measure that strips out one-off gains and losses — rose 1.7 per cent to $4.68 billion, with higher sales volumes of loans offset by lower margins.
It lower than the $4.87 billion it reported for the first half last year.
CBA reported that cash profit fell 2.1 per cent.
<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/2019/2/6/CBA2.jpg" alt="">
The interim dividend per share was flat at $2.00. 
The bank recorded an operating income of $12.4 million which was down 1.9 per cent for the same period a year earlier. 
<div class="advert" data-ad-type="MEDIUM" data-loc="MOBILE" data-max-width="767" data-reactid="50">CBA attributes this to volume growth being offset by its net interest margin decline, lower fees, weaker trading income and the impact of weather events. </div>
Volume growth in the core business resulted in lending and deposits increasing by 2 per cent, while home loan volumes increased 4 per cent.
The growth was more for owner occupiers than investors.
 
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Home loan volumes up, but CommBank reports lower than expected profit

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Kitchen, bathroom and laundry retailer e&amp;s has launched a designer showroom in Preston, adding to its existing nine showrooms across Victoria.
The new store aims to deliver an interactive experience and was designed by the interior and architecture firm Mim Design.
It will feature an array of products from more than 50 mid-range to luxury brands, including Sub Zero and Wolf, Neff, Bosch, Miele,Fisher &amp; Paykel, Asko, VZUG, Astra Walker, Duravit, Kohler, Gessi, Brodware, Victoria &amp; Albert, Villeroy &amp; Boch and SMEG.
Rob and Mike Sinclair, e&amp;s second generation owners, opened the store in December.
The 3039 square metre retail space has employed a team of 20.
<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/2019/2/5/Mim_Design_ES_0191.jpg" alt="">
“Launching an e&amp;s in one of Melbourne’s fastest growing suburbs just made sense,” Rob says.
He added it was fitted with an expansive demonstrative kitchen catering for workshops and events, along with a cafe for "pondering purchasers".
<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/2019/2/5/Mim_Design_ES_0372.jpg" alt="">
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Retailer e&s launches flagship store in Preston

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CBRE Hotels has sold Travelodge Rockhampton to a private Chinese investment group.
The acquisition is the group's first foray into the Queensland hotel market.
The 4-star Rockhampton CBD hotel at 86 Victoria Parade features 74 rooms, as well as four conference and meeting rooms, two food and beverage venues, a swimming pool, gymnasium and parking.
<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/2019/2/5/rockhampton%202.jpg" alt="">
The asset received multiple offers in the first week of the campaign.
CBRE Hotels said a stock shortage is helping to draw buyer attention to Queensland opportunities as investors are priced out of southern markets. Investors are seeking to capitalise on the Sunshine State’s strong tourism fundamentals and more transactions are expected to take place along the Queensland coast throughout 2019, they noted.
<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/2019/2/5/rockhampton%203.jpg" alt="">
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Travelodge in Rockhampton sold to private Chinese investment group

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HTL Property has announced the sale of the Coopers Hotel in Newtown following an off-market sales campaign.
The hotel on a 400 sqm block at 221 King Street last traded for $13.5 million in 2011.
For the 2018 financial year, the property had a $4.7 million turnover.
Turnover was balanced across food, beverage, gaming and wagering.
It has 21 electronic gaming machines and recently secured approval to expand the gaming room and midnight liquor licence with ‘early opener’ flexibility. 
It ranked #512 on OLGR Gaming Rankings list for the September 2018 quarter.
This sale represents HTL Property's fourth recent Inner City food and beverage transaction following the sale of the Salisbury Hotel, Bells Hotel and Bellevue Hotel.
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Newtown's Coopers Hotel sold off-market

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."

[smartcode_project:default project_id=1979 project_image_fid=363228]

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."

[smartcode_project_cta:default project_id=1979]

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.

[smartcode_project:default project_id=150489 project_image_fid=373834]

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."

[smartcode_project:default project_id=150713 project_image_fid=373827]

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.

[smartcode_project:default project_id=151449 project_image_fid=357458]

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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