Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

&nbsp;

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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Successful negotiations of a fresh lease agreement would allow Dexus to achieve its target of leasing more than 80% of its 1 Bligh Street, Sydney office building by June 2012, the property group has revealed in interim results.
Dexus says 1 Bligh Street is currently 68% leased by area, with law firm Clayton Utz and the Commonwealth Government the major tenants.
Dexus says it is currently in exclusive negotiations for a further four floors of the <a target="_blank" href="https://www.propertyobserver.com.au/office/sydney-s-1-bligh-street-valued-at-%24629-million/2011101051875">six-green-star premium office building</a>, which would take occupancy in the building to 82%.
In November it was reported that business information provider <a target="_blank" href="https://www.propertyobserver.com.au/office/bloomberg-considering-move-to-sydney-s-1-bligh-street/2011112452537">Bloomberg was considering</a> moving into the flagship office tower.
The property group announced net profit attributable to stapled security holders after tax of $145.7 million for the six months ended December 31, 2011
Dexus chief executive Victor Hoog Antink says the results are in line with guidance and underpinned by like-for-like net operating income growth of 2.4%.
“Our focus on leasing has seen us already secure more than 99% of 2012 financial year rental revenue,” he says.
Dexus secured lease renewals over 19,572 square metres in the half-year period, 91% of which were leases expiring in future periods. During the period 6,712 square metres of new leases were signed.
In October, <a href="https://www.propertyobserver.com.au/office/dexus-will-take-four-years-to-lease-1-bligh-street-merrill-lynch-analyst/2011101951988" target="_blank">Merrill Lynch analyst Simon Garing forecast</a> it would take at least four years to fully lease 1 Bligh Street.
The building at 1 Bligh Street has won numerous architectural, design and sustainability awards since being completed earlier this year.
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lschlesinger-FZcF9M3vE6

Dexus yet to meet leasing target at 1 Bligh Street 

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Westfield Sydney on Pitt Street Mall in the Sydney CBD achieved the highest specialty sales productivity in Westfield’s global portfolio, according to the group’s 2011 annual results.
The flagship store achieved speciality annual sales of more than $16,000 per square metre, with the next best performer being the Chermside Mall in Brisbane, which achieved speciality sales of $13,700 per square metre. The Chermside Mall is also Westfield’s biggest mall with 146,000 square metres of space.
Westfield Sydney, which has 257 stores and a gross lettable area of 78,000 square metres, is valued at just under $1 billion (up $944 million from $942 million) in the annual report while the adjacent Sydney Central Plaza, also on Pitt Street, is valued at $299 million, up from $287 million.
Westfield Bondi Junction in Sydney’s eastern suburbs, which achieved retail sales of $973 million or $12,400 per square metre, remains the most valuable in the Australian portfolio valued at $1.05 billion
Bondi Junction rents sit at about $1,200 per square metre.
The annual report does not provide annual sales figures for Westfield Sydney but co-CEO Steven Lowy says David Jones in Westfield Sydney and Myer in Sydney Central Plaza achieved sales of $1.1 billion for the year.
He describes the store as an “immediate success” that was “changing the face of retailing in the Sydney CBD with its combination of global and local high street retailers and high-quality dining”.
Lowy says rents at Westfield Sydney averaged $1,500 per square metre, the highest for a project of this scale and higher than in Westfield London and <a href="https://www.propertyobserver.com.au/retail/one-million-weekly-london-shoppers-buoy-westfield/2011110852254" target="_blank">Westfield Stratford </a>– its newest stores in the UK.
As a standalone store Sydney Central Plaza achieved annual sales of $357 million, with speciality annual sales of $16,000 per square metre.
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Westfield Sydney ‘changing the face of retailing’, but Bondi Junction the most valuable: Steven Lowy

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Shopping centre group Westfield Group has reported net profits of $1.53 billion on the back of strong speciality store sales, a record volume of leasing activity and growth in property income.
The 2011 result to December 31, 2011 was driven by net property income increasing 7% during the year to $2.06 billion, a 100% increase in the group’s property management income to $114 million and a 92% increase in project income.
Net profits were up 37% on 2010 profits of $1.12 billion. 
Property income in local currency terms was up 8% in Australian and New Zealand stores, up 1% in the United States and up 36% in the United Kingdom.
In Australia, comparable specialty retail sales for the 12 months were up 1.5% and up 1.9% in New Zealand, with the strongest performance in both Australia and New Zealand being in the December quarter – up 2% and 4.8% respectively on the September 2011 quarter.
Australian retail outlets account for nearly half of the 24,000 outlets in the group’s 118 outlets, according to the 2011 annual results.
Co-chief executive Steven Lowy says there was good demand for space, particurlarly in the December quarter, the strongest for the group in two years, with 3,000 leasing deals signed.
The Australian / New Zealand portfolio was more than 99.5% leased at December 31, 2011, with the United States portfolio at 93.1% and the United Kingdom at 99%.
Across all regions, Westfield shopping centres are 97.5% leased.
Lowy says there was “solid growth” in average rents by 3.5%.
In the United States, comparable specialty retail sales for the 12 months to December 2011 were up 7.1%, with sales in the December quarter up 9.8%.
At Westfield London, sales for the year were over £960 million, up 10.8% year on year.
“Particularly pleasing was the record volume of leasing activity during the year, with over 5,100 leases agreed covering over 960,000 square metres of retail space. This highlights the retailer demand for our high quality portfolio globally,” write co-CEOs Peter and Steven Lowy. 
Peter and Steven Lowy say the result was at the upper end of Westfield’s earnings forecast range after absorbing a 12% appreciation in the Australian dollar to the US dollar and an 8% appreciation to the UK pound over the year.
Currently, the group has $2.4 billion worth of projects under construction, with Westfield’s share being $1.3 billion. This includes <a href="https://www.propertyobserver.com.au/retail/westfield-stratford-city-what-the-million-saw/2011110852259" target="_blank">Stratford City</a>, in east London, which opened during the year and is <a href="https://www.propertyobserver.com.au/retail/one-million-weekly-london-shoppers-buoy-westfield/2011110852254" target="_blank">the largest urban shopping centre in Europe</a> and adjacent to the London 2012 Olympic venue.
The centre has had 13.6 million shopping visits in its first 14 weeks from opening to December 31, 2011.
During the year, Westfield commenced work on $760 million worth of new projects, including Fountain Gate in Australia and UTC in San Diego.
 
 
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Westfield profits up 37%, with solid rental growth

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Yes, there is some good news out there.  It isn’t making the headlines, but it is out there nevertheless.
Here are seven positive points to help you make it through your real estate day.
<ol>
<li>The vacancy rate is tight.  In most capitals and major regional markets it remains under 3% and is much lower in Brisbane, Sydney, Perth, Canberra and central Queensland.  Rents growth is starting to accelerate, and we know of numerous examples where more than 30 rental submissions are being received for vacant rental dwellings across Brisbane.</li>
<li>Sales have improved since mid-year, and those vendors who meet the market are selling – and now, often quickly.  It is still a buyer’s market – with the high supply of stock for resale – ensuring that you need to realistically price and market your property well in order to make a sale.  Investors are starting to take their properties off the market and are renting them out again, as they are attracting good rental yields.</li>
<li>Last year’s interest rate drop is having some impact – with the number of owner-occupier loans up 2% in December.  Housing investment loans rose 7.5% in December, after a 2.7% rise in November.  First-home buying activity is currently at a two-year high. Generic prices might be still falling, but there are signs that the housing sector is starting to turn the corner.  The latest housing finance data provides a degree of encouragement.  Home loans have now increased for nine consecutive months, and the investor market is doing the bulk of the heavy lifting.   We have been saying for some time that it is the investors who will get the housing market back on its feet.</li>
<li>Hamilton Harbour – one of the first major Queensland apartment projects to face settlement since the GFC – is settling well.  No, that isn’t strong enough – it is going great guns!  I nearly said gangbusters, but that might be taking it a bit too far. At the time of writing, 89% of the 435 apartments sold since early 2009 have settled, with an overall 95% success rate likely by the end of this month.  <a href="https://www.propertyobserver.com.au/queensland/brisbane-s-rash-of-new-developments-could-have-trouble-getting-financing/2011072050860" target="_blank">We originally wrote about Hamilton Harbour in July last year</a>, stating that it should be on the industry’s “must-watch” list; it was a litmus test for the Brisbane market – a beachhead, if you will.  Sadly, few seem to be watching, and the media are not writing about it. This is big news for Brisbane-town. Other, lesser projects (if you ask me), also appear to be settling well. The average price of a settled apartment in Hamilton Harbour is $526,000, with just over $200 million worth of property settled so far.  Over 220 apartments have been leased in both the towers since late November last year.  The average gross rental yield – based on evidence to date and being rented out for 50 weeks per annum – is 5.3% across the investment stock.  The one-bedroom and one-bedroom with study units are achieving the higher yields.</li>
<li>The Melbourne Institute-Westpac confidence survey shows that late last year, price pessimists in Brisbane dominated (-10%) versus this month’s positive result of 27% (percentage of those expecting a rise minus percentage expecting a fall) – a 180-degree turn in just three months.  The Good Time to Buy a Dwelling Index is up in Queensland and also in Western Australia.  Queensland’s pending state and local elections will hopefully lift confidence higher.</li>
<li>While <a href="https://www.propertyobserver.com.au/economy/be-careful-what-you-wish-for-on-interest-rates-michael-matusik/2011103152145" target="_blank">we don’t need to build as many new homes as we once did</a>, outside of Melbourne, Adelaide, Canberra, Cairns and the Gold Coast, the new housing markets aren’t oversupplied. There is a lot of nonsense written about supply – published often by young’uns who can count (well, sometimes just) but have little understanding about how the new housing market actually works.  At present, for example, there is a lot of commentary (and press) about a pending oversupply of new apartments across inner Brisbane.  Now, whilst there is lots of new mooted apartment development – approved in council – the fact remains that not enough new product is actually being built. Over the last five years for example, 13,000 new dwellings were required to accommodate the population growth, yet – based on the official statistics – just 8,017 new dwellings were approved.  Last year, just 1,902 new dwellings were approved, against an annual average demand for 2,650 new housing starts.  At present there is a serious short-fall.</li>
<li>To finish, everything cycles, including the property market. The Brisbane market, for mine, is at six o’clock on the property clock or at the bottom of its cycle.  Many investors try to pick the bottom of the market.</li>
</ol>
Yet, the direction in which property values travel is only partially dependent on the broader market conditions.  Recent studies show that about 40% of growth (or otherwise) can be explained by trends in the overall market.  The all-important 60% comes down to more individual factors such as location, the style of housing, its design and inclusions, and the income/demographics of the area.
However, a 40% swing in your favour shouldn’t be sneezed at, especially after what the Brisbane market has been through of late.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
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Seven positive signs for Australia’s property markets

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Income from a property investment is generated through the receipt of growing rent secured by a lease contract. The variability of income is low. Earnings in Australian real estate investment trusts from additional sources, including property development and funds management, dilute this stability. 
Property income exposure within an A-REIT portfolio can be enhanced by selecting those A-REITs that reflect these characteristics of property. Up until the onset of the GFC, the use of gearing increased reflecting the relatively low cost and ready availability of debt. This exacerbated the steep rise and subsequent decline in market capitalisation of A-REITs. 
In the four years leading up to December 2007, average A-REIT price performance of 9.1%  per annum reflected using increased leverage, acquiring overseas properties and higher valuations on fund management businesses. In the four years to December 2011, the average price fell by 22.5% per annum. By contrast, the average annual income return for the four years to December 2007 was 6.6% per annum compared with 7.1% per annum for the subsequent four years to December 2011. 
Not only was there a stark contrast in performance, volatility increased significantly as market prices and sentiment deteriorated. The magnifying impact of excessive gearing was evident in performance between the two periods. Volatility of return increased from 11.6% per year in the four years to December 2007 to 33.1% per year in the four years to December 2011. Annual volatility of income returns decreased from 3.5% per year to 2.6% per year between the same two periods. 
The income generated by property is relatively stable. The introduction of alternative sources of income including development profit, transaction and fund management fees shifted the characteristics of an A-REIT investment away from property fundamentals and increase volatility of returns. By focusing on contracted rental income, the business risks and associated volatility of return of the investment can be reduced. Imprudent gearing will magnify volatility of earnings and returns.
Mark Wist is senior asset consultant at <a target="_blank" title="Atchison Consultants" href="https://www.atchison.com.au/">Atchison Consultants</a>.
 
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Income in A-REITs is the essential attribute of property investment

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The combined property-finance-business sector was the only industry to record an improvement in both profitability and confidence over January, according to the NAB monthly business survey.

On the back of a small overall rise in both business conditions (up two points) and business confidence (up one point) in January, profitability rose “marginally” in the finance-property-business sector as well as in the recreation and personal services industry.

The proportion of businesses not requiring finance increased from 64% to 67% in January, the highest figure since the survey was first asked.
<img src="/images/stories/nabfeb15.gif">
Source: NAB
Confidence also strengthened in the property-finance-business sector, with the industry index rising four points to +3 on this measure.

In line with <a href="https://www.propertyobserver.com.au/residential/queensland-building-approvals-up-25%24-but-national-approvals-fall-abs/2012020253231" target="_blank">historically weak building approvals</a> and a challenging economic environment, sentiment in the construction sector deteriorated over January.

NAB recorded a nine-point drop in construction industry confidence (alongside a similar fall in the wholesale sector), while there was a heavy 30-point fall in construction sector profitability.

The construction industry found itself on the wrong side of most measures in the survey, including forward orders and capital expenditure.

Construction is also the second most under-used industry in the economy alongside retail, operating at 79.8%, ahead of manufacturing (76.1%). Capacity utilisation is highest in mining (87.1%), according to the survey.

 Summing up the January index, NAB said there were “heavy falls in conditions in wholesale, transport and utilities, and construction, broadly offset by improvements in mining, manufacturing and recreation &amp; personal services”.

On a state-by-state basis, business conditions deteriorated sharply in SA and Tasmania, but strengthened modestly in Victoria and Queensland.





 
 
 
 
 
 
 
 
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Property sector profitability and confidence improves, but construction falls further: NAB

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If our economists are armed with all the research available in today’s information age, why can’t they agree on where are our property markets are heading? 
In fact a better question would be, why do so many get it wrong? 
The simple answer is that market movements are far from an exact science. 
It’s more than just fundamentals that move markets. 
The fundamentals – like population growth, supply and demand, employment levels, interest rates, affordability and inflationary pressures – are easy to monitor. 
However, one overriding factor that the experts have difficulty quantifying is investor sentiment. 
In a recent report, AMP chief economist Dr Shane Oliver explains that people often suffer lapses of logic when investing and many of their investment decisions are driven by emotion. 
For example, we tend to extrapolate the present into the future. When things are booming we think the good times will never end, and when the market mood is glum, we have difficulty seeing the light at the end of the tunnel. 
Think about it – when the media reports falling property prices or an impending housing crash, many investors become scared and sit on the sidelines, believing the end of property is nigh and things will never improve, when in reality much of the risk has been removed from the market. 
Conversely, when property markets are booming and stories of investors seemingly making large gains overnight abound, people want to jump on the bandwagon and cash in – often at a time when the market is near its peak.
 
Other emotional traps include becoming overconfident, wishful thinking and ignoring information that conflicts with your current views. In other words many investors create their own “reality”. 
Can you see how this type of activity, influenced by investor psychology, drives booms and busts? How the dominant investor mentality of the time helps drive the property cycle? 
Simply, when investors put on the brakes, housing values tend to stagnate or fall due to lack of demand. And when they jump back into the market, demand rises and up go prices. 
Obviously one or two misguided investors won’t be able to influence property prices, but investor sentiment is contagious. 
People tend to want to do what others are doing – they follow the crowd because going against popular opinion is seen as risky. What if you make a mistake? What if the others are right and you are wrong? 
Oliver says this “collective behaviour” is magnified by several things, including; 
<ul>
<li>
Mass communication enabling the behaviour to become infectious. Now more than ever we are bombarded with messages from the media influencing how we think and feel about things. When we hear that real estate is doomed, all but a handful of sophisticated investors get scared out of the game. And when the media tells us housing markets are booming everyone wants a piece of the action.</li>
<li>
Pressure to conform If your friends or family are doing it, it must be right. Right? Human nature makes us reluctant to do the opposite of what our peers are doing. </li>
<li>
A major precipitating event can give rise to a general belief that motivates investor behaviour. The global financial crisis scared waves of investors out of the markets. On the other hand, the resource boom enticed thousands of investors into west coast housing markets to cash in. </li>
<li>
A general belief that grows and spreads When the belief that property values can only go up spreads through an uneducated new generation of investors they enter the market pushing prices up even further, perpetuating the belief and helping make it a reality. Similarly when the crowd believes the market is going to crash, they steer clear, this gets reported in the media and the negative sentiment feeds on itself. </li>
</ul>
Oliver observes that these “lapses in logic” by individual investors and the magnification of such lapses by crowd psychology feeds property cycles and goes a long way in explaining why we see boom and slumps at different points in time. 
When investor sentiment is positive, the crowd jumps in feet first, pushes up demand and places upward pressure on prices – causing boom conditions. Conversely, when sentiment is negative, the crowd backs off and frequently sells out of the game due to concerns that they’re about to lose everything – causing market slumps. 
What can an investor learn from this? 
<ol start="1">
<li>Our property markets are not only driven by fundamentals, but also by the often irrational and erratic behaviour of an unstable crowd of other investors.</li>
<li>Booms never last forever, neither do busts. Don’t be surprised when they come around, and don’t overreact. According to Oliver, this will help you avoid being sucked into booms and spat out during busts.</li>
<li>Treat your property investments like a business and stick to a proven strategy to take the emotions out of your investment decisions.</li>
<li>Recognise that property is a long-term play and set up financial buffers to help you ride the property cycles. </li>
</ol>
Invest counter cyclically.
Warren Buffet once said: “We attempt to be fearful when others are greedy and to be greedy only when others are fearful.” 
This is also the investment strategy of many successful property investors. 
I’ve always been an advocate of counter-cyclical investing. I’m often sceptical of conventional wisdom – not because the crowd is always wrong, but because the crowd is always late. 
Sure, it takes some courage to do the opposite of what everyone else is doing, but the results of your contrary behaviour will ultimately speak for themselves.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
 
 
 
 
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Why economists’ property predictions are so often wrong 

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Mosman heads top 100 list, with Kew, Paddington and Castle Hill climbing the ranks and Hope Island and Vaucluse tumbling 

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Despite growing demand from investors for distressed listed Australian commercial properties, supply is set to easily exceed demand during the first quarter of 2012, according to research by the Royal Institute of Chartered Surveyors.
The report shows levels of distressed commercial properties on the market increased from quarter three to quarter four, the RICS Global Distressed Property Monitor found.
Globally, demand for distressed commercial properties increased as more distressed commercial properties entered the market.
The levels of increasing demand are unprecedented, according to the report, with 80% of the countries surveyed reporting increased investor interest.
“Indeed, in most cases the pace of rising demand picked up at a faster pace than previously seen,” writes RICS economist Matthew Edmond
“The rise in the number of countries reporting rising investor appetite for distressed assets may be viewed as an indication that prices in the market place are getting closer to offering value.”
Scandinavia, UAE, Italy, France and Japan led the push for increasing demand from investors, and only three counties surveyed reported decreasing demand.
Countries at the centre of the eurozone debt crisis are expected to have the fastest rising levels of distressed commercial property entering the market, with the Republic of Ireland, Portugal, Spain and Italy topping the list.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/distressl.gif"><img src="/images/stories/distressthumb.gif"></a>
“Given the ongoing and intensifying problems in Europe, it is little surprise that respondents in many of these countries are more pessimistic,” writes Edmond.
“The continuing debt crisis in the area is clearly adversely affecting sentiment, as property professionals in France and Germany also anticipate further rises in distressed selling.”
Ireland and southern European nations also top the list of countries where supply outstrips demand.
An expected fall in supply was reported by seven counties, two more than in the previous quarter, but the majority of respondents in Europe still expect supply to exceed demand.
 
 
 
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Supply of distressed commercial properties to outstrip demand: Royal Institute of Chartered Surveyors

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RBA deputy governor Guy Debelle says an improving banking outlook in Europe might lead to lower funding costs for Australian banks but the current uncertainty will remain. 
Speaking today at the Bloomberg Seminar in Sydney, Debelle says there has been “a thawing in bank debt markets” in 2012. 
“With the beginning of the new year, the investment slate is clean and risk tolerance thus far is on the increase. This development has been bolstered by the avoidance of worst case outcomes … and by the European Central Bank’s action [in December to bolster liquidity],” he says.
However, he provided support to the decisions of the major banks to push up variable mortgage rates independently of the RBA by admitting that there had been a “sizeable step up” in the cost of debt issuance in 2011.
“Investors are demanding much higher compensation for bank credit risk now than they were in mid-2011. The repricing probably happened in the last quarter of 2011, but the general lack of issuance made it more difficult to observe.
“This global repricing of bank debt has clearly affected the Australian banks’ wholesale funding costs,” he says.
<img src="/images/stories/coveredbonds2.gif">
In his presentation, Debelle included a table that showed how bond market issuance costs had risen recently with covered bonds issued by the Australian banks “at markedly wider spreads than their unsecured issuance mid-year”.
The cost of issuing residential mortgage-backed securities, another form of offshore wholesale funding, also increased over the course of 2011.
<img src="/images/stories/debelle1.gif">
However, Debelle says there are some signs of encouragement with a “sizeable narrowing of spreads in the secondary market on the domestically issued covered bonds, to around 140 points over swap” over the past few days.
“This narrowing in bank credit spreads was confirmed by the unsecured issuance last week.”
Despite this encouragement, Debelle acknowledges that some corporations are able to raise funding more cheaply than the major banks because of their higher credit rating.
“For example, Coke, which is rated A-, was able to issue more than 100 basis points below the AAA rated domestic covered bond issues,” he says. 
In addition, he says the rise in wholesale funding costs has been “accentuated for funds raised offshore by a widening in the cost of swapping foreign exchange into Australian dollars”.
Overall he says the start of 2012 has been more positive than the end of the last year.
“Whether this happier state of affairs persists is difficult to tell. There have been outbreaks of optimism over the past couple of years which were dashed,” Debelle warns.
“I think the only thing which is certain, is that uncertainty is likely to persist for some time to come.”
<a href="/images/2015/12/16/Screen%20Shot%202015-12-16%20at%2011.40.02%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/16/Screen%20Shot%202015-12-16%20at%2011.40.02%20AM.png" alt="">
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