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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&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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Auction results finally improved slightly over the weekend, fuelling hopes the latest interest rate cute has spurred first home buyers back into the market and prices are once again on the rise. But experts have warned that any property recovery won't gain real momentum until 2012.

The improved auctions results came after a number of other pieces of positive data. The proportion of first home buyers in the market rose to its highest in nearly a year and a half, and recent RP Data figures showed prices only fell by 0.2% in September – the lowest fall since February.
APM economist Andrew Wilson says while the data is a good sign property markets are improving, it may be a few months until the recovery gains strength.
"The market closes down over January because the industry itself closes down. Certainly there are holiday sales and a few bits and pieces, but people who sell during that period tend to be people that are forced to do so."
"It's just a seasonal effect. Even in the boom period, you see a tapering off in prices growth, but that tends to be picked up in the following quarter. You're going to have a lot of build-up in January and February towards March."
The prospect of a delayed benefit comes as the spring selling season enters its final few weeks. Investors had hoped the season would see a rise in the number of buyers, but an increase in the number of listings has dampened any hopes of price rises.
Instead, new data showing a rise in construction activity and housing commitments has given investors hope. But as Wilson points out, the market is about to shut down and any benefit won't be seen until February or March – by which time another interest rate cut may have occurred, according to some commentators.
"A lot of people make a decision to sell in February, so you have that pre-Easter rush. There's an advertising campaign a month or so before that, so it's a fairly fertile decision period for those going into property."
The weekend's auction results gel with the prospect of a recovering market. Sydney recorded a 57% clearance rate, as buyers rushed in to take advantage of the state's expiring first home owner benefits.
Melbourne had a 54% clearance rate, with 713 auctions, while Brisbane and Adelaide recorded results of 47% and 38% respectively.
Wilson says the results show a good recovery in Sydney, raising prospects of higher activity in February-March 2012.
"There is no doubt that Sydney has improved, after being flat for the year. It's certainly showing signs of price growth and improvements in both sales and buying activity."
"Over the next few week as we get more listings, these will be the tests for the market. As we see higher numbers, we get an idea of where the market is."
This article originally appeared on <a href="https://www.smartcompany.com.au/property/20111114-auction-results-improve-but-experts-say-recovery-won-t-come-until-2012" target="_blank">SmartCompany</a>. 
 
 
 
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cknowlton-QnEa6ntUYP

Auction results improve but experts say recovery won’t come until 2012

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“Global economic headwinds” have slowed the growth of rents and capital values of offices in the Asia Pacific region in the third quarter of 2011, according to CBRE’s global chief economist.
The Asia Pacific Office Rent Index, which measures office rent, rose 12.9% year-over-year, “reflecting a continued strong rebound from the global recession,” says CBRE global chief economist Robert McGrath.
But there was just a 2.2% increase for the third quarter, “indicating that even in the region with the strongest growth, the recovery has moderated”.
It was the same story with the Asia Pacific Capital Value Index, which measures office capital, which increased 1.1% for the quarter 16.5% year on year.
“[The] quarterly increase was well below the average quarterly growth of 3.7% since Q3 2009,” McGrath writes.
However, Asia Pacific fared better than the rest of the world. The global quarterly growth of office rent was just 0.9% with a year-on-year increase of 5.1% while the average quarterly growth of office capital was 1.1% with a year-on-year increase of 10.7%.
“Although both rents and capital values continued to rise, quarterly growth rates lost momentum,” says CBRE global chief economist Raymond Torto.
“Even in Asia – which continues to propel both indices higher – activity slowed due to global economic headwinds.”
America fared poorly in Office Rent Index, with a year-on-year increase of just 1.5% and a stunted quarterly growth of 0.4%.
“Although the Americas Rent Index reached its trough in Q2 2010, Q3 2011 marks only the third quarter of notable rental growth, reflecting the lingering strains in the aftermath of the global financial crisis as well as the uncertainty arising from employment, consumer confidence and debt-related challenges,” says McGrath.
Despite Its feeble rent performance, the Office Capital Value Index for America was stronger, with quarterly growth increasing 1.5% and a year-on-year growth of 10.5%.
“[The increases demonstrate] that investor demand remains strong despite economic uncertainty,” says McGrath.
 
 
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awalsh-7Ub9EypybQ

Asia Pacific office rents growing more slowly due to 'global economic headwinds': CBRE

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Melbourne’s booming fringe office market will reach the 1 million square metres mark of A-grade office space over the next few years when a number of major Docklands projects are completed, according to research by Savills.
The Melbourne fringe office market includes Southbank, <a href="https://www.propertyobserver.com.au/victoria/office-tenants-flock-to-st-kilda-road-savills/2011072150879" target="_blank">St Kilda Road (the busiest office leasing market in the second quarter of the year)</a> and the new Docklands precinct.
It will have nearly double the A-grade square stock (the highest grade outside of inner-CBD premium offices) of its nearest competitor, the Brisbane fringe market, with 527,325 square metres of A-grade space. Sydney is next with a fringe market of 311,395 square metres, followed by Perth (123,873 square metres) and Adelaide (35,520 square metres).
Currently under construction in Docklands are the 13,000-square-metre new headquarters for Melbourne Water at 990 La Trobe Street, the ATO and Marsh Mercer tower at 735 Collins Street (part of the 185,000-square-metre Collins Square project), the 20,000-square-metre Aurecon building at 850 Collins Street and NAB’s second Docklands building at 720 Bourke Street, featuring 63,000 of office space for bank employees.
New projects that will bolster the fringe market include MAB’s 395 Docklands Drive (40,000 square metres) and Charter Hall and Flagship‘s 685 La Trobe Street (35,000 square metres).
According to a <a href="https://www.propertyobserver.com.au/office/melbourne-office-market-to-remain-strong-until-2014-colliers/2011091251513" target="_blank">September Colliers report,</a> more than 70% of the 260,000 square metres of new office space set to become available over the next three years is already pre-leased. 
This strong forecast follows a six-month period from January to June 2011, when the Melbourne office market demonstrated the highest level of net absorption nationally.
At the current rate of development the central Melbourne market – comprising the CBD, Southbank, Docklands, East Melbourne and St Kilda Road (now more than 5.45 million square metres of space) – will exceed that of central Sydney ( the CBD and North Sydney), currently the biggest office market with 5.55 million square metres, by 2015.
Savills Australia national head of research Tony Crabb says the 1 million-square-metre milestone is a “testament to the attraction that Melbourne’s office market generally has for local, interstate and international businesses”. 
Crabb says the key factor in the market’s growth has been the availability of development sites which have facilitated the construction of modern, campus-style buildings. 
“These sites have and continue to assist the growth of the fringe market with relevant, modern accommodation which is both affordable and accessible. They have also allowed businesses to upgrade and consolidate into a location offering access to the best available amenity, which are, these days, pretty much essential requirements in the quest to attract and retain quality staff,’’ he says. 
Large tenants requiring space of 10,000 square metres or more have also been a factor in underwriting the viability of new buildings while the diversity of business types has also been beneficial, Crabb adds. 
Melbourne is currently the headquarters for five of Australia's 10 largest corporations – ANZ, BHP Billiton, NAB, Rio Tinto and Telstra – as well as institutions such as the Business Council of Australia and the Australian Council of Trade Unions (ACTU). 
Savills Victorian head of office leasing Nicholas Farley says Melbourne has Australia’s largest container port, Australia’s most important manufacturing sector, a very accessible international airport and very competitively priced industrial land in the west ideal for large-capacity warehousing and supported by the nation’s best road transport infrastructure. 
“These factors, along with those cited above, and Melbourne’s reputation as the world’s most livable city, have also been important drivers of demand for both CBD and fringe office space,’’ he says. 
Besides being the headquarters of two of the big four banks (NAB and ANZ), Melbourne is also home to 40% 0f super funds and 65% of industry super funds.
Photo courtesy of Tourism Victoria
 
 
 
 
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Docklands growth to push Melbourne A-grade fringe office space to one million square metres

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Stockland has sold its Melbourne office tower Riverside Plaza to Dexus Wholesale Property Fund for $201.5 million.
The sale of the Flinders Street building is part of a program of divestments to fund the share buy-back and maintain low levels of debt.
Allowances for outstanding incentives totalling $7.9 million will be paid to the purchaser.
The $193.6 million net proceeds represent a premium of $11.6 million or 6.4% to the June 2011 book value of $182 million.
The 19-storey A-grade building has been popular with tenants since Grocon built it in the early 1990s for the State Electricity Commission, due largely to its extra-large floor plates and unobstructed view of the Yarra and Port Phillip Bay.
Stockland Trust Group bought the property after it took over APF in 2000.
In the last four years 60% of Riverside Plaza’s floors have been refurbished.
Upgrades to the main foyer, entrance and ground floor retail tenancies were completed this year.
The major tenants in the building include Sinclair Knight Merz  and Primus Telecommunications.
“This is an outstanding result, which reflects the quality of this building and the hard work that has gone into increasing the value of the asset in recent years,” Stockland commercial property chief John Schroder says.
 
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jchancellor-FAypfDUnLy

Stockland sells Melbourne Riverside Plaza office tower to Dexus for $201.5 million

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Veteran apartment builder Harry Triguboff expects interest rates will fall sharply and quickly – as much as one percentage point in four months – as cooling demand from China apartment buyers and Europe's crisis weaken the Australian economy.
Triguboff, founder and chairman of Meriton Apartments, which builds about 1,500 units a year in Sydney and southeast Queensland, described his outlook as bearish for the short term but bullish in the medium to longer term.
"I do not believe that the Reserve Bank will keep the high rates at present levels," he told The Australian.
"Already Westpac is constantly saying that interest rates will drop. I say they must drop. If rates don't drop, building activity will drop even further."
Apartment prices had fallen about 10% in the past six months but would rebound because very little was being built, he advised.
Weaker economic conditions and the lack of new building would have a flow-on effect, putting pressure on the share prices of industrial and building materials companies, he added.
Including the Reserve Bank's 25-basis-point drop in November, Triguboff believes the cash rate will fall one percentage point in this round of cuts, with half of that fall in the next two months.
Having visited China earlier this year, Trigboff suggested China's domestic demand was far softer than a year ago and weaker conditions had stemmed the flow of Chinese investors to Australia.
The sales of Meriton apartments to Chinese buyers had fallen from about 25 to 12 a week, according to The Australian report.
Last month Triguboff told Business Spectator’s Robert Gottliebsen that while the Chinese were still buying strongly a “significant minority” of Chinese buyers were paying a $3,000 holding deposit, but then not proceeding and asking for their $3,000 to be returned.
<a href="https://www.businessspectator.com.au/bs.nsf/Article/Harry-Triguboff-China-apartment-property-interest--pd20111026-MYRRJ?opendocument&amp;src=rss">The Gottliebsen column</a> noted “Triguboff’s Meriton Group was selling about $500 million worth of apartments in inner Sydney to mainland Chinese – almost every inner Sydney apartment he erects”.
It noted where Triguboff builds apartments outside of the inner-Sydney areas the Chinese were not buyers, such as in his Brisbane apartment projects.
Triguboff estimated that he had about 25% of the Sydney market and believed that the total purchases in Sydney were therefore about $2 billion.
Triguboff does not build apartments in Melbourne, but he estimated Chinese buying in Melbourne would be about $1billion – a total of $3 billion in the two cities.
Meriton issued a press release after the last rate cut saying an increase in the demand for purchasing property as rates fall was imminent. 
“We are confident investors will turn their attention back into property where capital growth, secure income and increasing yields are a formality.
“Investors, some of which have had their money tied up in term bank deposits relying on rates to go up or those uncertain of a volatile share market will be first to react," it said.
“Another major factor that will put pressure on demand is strong population growth.“Many foreigners are lured by very low levels of unemployment compared to other developed countries as well as the large number of high quality educational institutions, which are operating at full capacity.
“As demand continues to outstrip supply, which cannot be rectified in the short term or by rate cuts, there can only be one outcome - higher prices,” the press release concluded.
Photo by Meriton 
 
 
 
 
 
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Harry Triguboff expects deep rate cuts fast, as cooling Chinese demand weakens economy

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{yoogallery src=[images/stories/september9glynt]}
Demetri’s Castle, also known as the historic gothic Mount Martha mansion Glynt Manor, has been sold for $3,399,000 – a $900,000 loss in three years.
It was initially listed by hair and make-up artists Demetri and Lila Sideropoulos, who wanted $6.5 million for the nine-bedroom, eight-bathroom mansion on its 2010 listing.
The Greek couple, whose celebrity clients have included Matt Damon, Russell Crowe, Bert Newton and the Pussycat Dolls, bought the 1914 house in July 2008 for $4.3 million from Michael Puttock and Diana Carr.
They then thoroughly renovated it into a family home and bed and breakfast on the SBS documentary Demetri’s Castle.
It sits on about 8,000 square metres, with views of Port Phillip Bay and the Melbourne lights in the distance. It was designed by Harold Desbrowe Annear as a single-storey farmhouse for the Henty family, descendants of Victoria's first European settlers.
It bears a similarity to another of his designs, Delgany at Portsea. Its later owners included the Buxton family from 1917 to 1983 when the then 31-hectare property featured sweeping lawns, orchards and farmlands that ran right to the edge of the bay.
In 1969 the family subdivided the property but retained the manor and two hectares of beautiful English- and French-inspired gardens.
In 1983 the property was sold to new owners, who restored the grand old manor and ran it as a tourism resort, naming it "Glynt By The Sea". It was again run as a bed and breakfast from the mid-1990s by the adventure travel pioneer Bill King.
Mark Callan and William Gilchrist bought the property in 1997 and commissioned Yarraville architect Hugh Basset to undertake some interior redesigns while the home's former gardener, Bob Barker, who started work at Glynt in the late 1920s, returned to restore the gardens.
The duo sold the property in 2000 for $2.35 million.
Last year the Sideropouloses indicated they were selling so they could pursue opportunities overseas, saying they didn't get attached to things. Geoff Smith from LJ Hooker Frankston sold earlier this month, <a target="_blank" href="https://www.propertyobserver.com.au/victoria/demetri-s-castle-star-of-sbs-series-to-go-under-the-hammer/2011090951486">some four weeks after its scheduled October auction</a>.
ASIC documents indicate Smith was taking instructions from administrators of the holding company Mt Martha Landmark Pty Ltd.
 
 
 
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Demetri's Castle sells for $900,000 loss, not including its televised labour of love

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Brantwood Hall, a block of 13 apartments in Edgecliff, in Sydney’s eastern suburbs, has fetched $5 million two weeks after being passed in at auction.
The New South Head Road listing sold under instructions from <a href="https://www.propertyobserver.com.au/residential/sydney-eastern-suburbs-blocks-attract-strata-investor-interest/2011101351928">receivers had been tipped to fetch more than $5 million.</a>
The four-floor Art Deco block comes with 12 apartments with one bedroom, living room plus sunroom, totalling about 58 square metres each. There is also a three-bedroom penthouse with about 300 square metres of top-floor space including balcony.
It has individual strata sale potential, according to its Ray White Double Bay selling agent Craig Pontey.
“The gross annual rental could be improved,” says conjunctional Ray White agent Violet Farebrother
Its current gross annual return is $270,000. After renovations with new kitchens in 1986 it was $110,000, reflecting just 3.6% annual growth during the past 25 years.
 
 
 
 
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Sydney eastern suburbs block Brantwood Hall sells to investor for $5 million

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Property investment adviser Monique Sasson Wakelin says the latest RBA rate cut was too little, too late for any material impact this year on property markets.
The managing director of Wakelin Property Advisory says another rate cut is likely before February 2012.
“If that does happened I think this market is going to kick because a half a per cent has a much greater financial  impact on people’s financial affairs and commitments than a quarter per cent does.”
Wakelin expects any rate cut would energise the market in 2012, having sent the message that the upward cycle of interest rates is over.
Wakelin pointed out that Australia had endured 175 basis points increase in rates since April 2009, so the recent rate cut would shore up confidence in the economy.
She anticipates some renewed capital growth in 2012 – “probably around the middle of the year”.
She said there had been a welcome improvement in affordability, but not a slump in Melbourne, Wakelin told listeners to Hilary Harper’s 774 ABC program on Saturday.
 
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Single rate cut not enough: Monique Sasson Wakelin

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Net tangible asset (NTA) represents the value of the underlying property assets in an A-REIT and is expressed as a dollar amount per security. A price discount to NTA implies that the security can be purchased on the exchange for less than the value of the underlying real estate held by the A-REIT. 
At its peak in March 2007, the sector recorded an average premium to NTA of more than 80%. In May 2009, that average had fallen to a 33% discount. This fall was caused in part by high gearing exacerbating falling property values as a consequence of the GFC, the short supply of credit facilities to refinance expiring debt, a reduction in the valuation of management entities, questions about the effectiveness and appropriateness of strategies implemented by management in the years leading up to the GFC and concerns about the sustainability of asset valuations on balance sheets. 
The average discount to NTA for the sector is now -11%. 
Gearing in the sector is now a more manageable 30% and credit availability is improving, as demonstrated by the $1.27 billion bi-lateral bank facility recently secured by Westfield Retail Trust. Occupancy rates have improved and rental growth has some positive momentum. The 2011 half-year reporting season confirmed that asset values for quality properties are no longer falling with some beginning to rise. Recent A-REIT asset sales at or at a premium to book value suggest that balance sheet valuations are reasonable. Recent examples include the sale of Stockland’s 50% interest in 52 Martin Place, Sydney at a 2.7% premium to book value and the sale of 259 George Street, Sydney by Commonwealth Office Property Trust at a 15% premium. 
Strategies are now largely focused on domestic activity and development losses have worked their way out of the system.  The management structures of some A-REITs including GPT, Centro and Westfield have undergone substantial change in the past two years and aside from investor rebuke over the Dexus remuneration report, this A-REIT AGM season has so far been relatively uneventful. 
The gap between NTA and security prices may well now start to close as a consequence of increased investment into the A-REIT sector taking advantage of the prevailing NTA discount. This inward investment, including the buy-back activities of groups such as GPT, Stockland and Commonwealth Office Fund should drive prices up over time to meet NTAs.
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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Why the discount to net tangible asset in A-REITs should disappear

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In my last article I covered the<a href="https://www.propertyobserver.com.au/residential/the-mad-%E2%80%93-and-very-fashionable-%E2%80%93-expressions-of-interest/2011110652221" target="_blank"> method of sale by “expressions of interest”</a>, so in this one I am expanding on the wider subject to discuss the system of sale by tender. 
According to Wikipedia, <a href="https://en.wikipedia.org/wiki/Tender_offer">‘A tender offer is a corporate finance term denoting a type of takeover bid’.</a> The site doesn’t even consider it as a means of selling residential property. So clearly this system is really going to confuse everyone in the residential market. 
Or will it? This is actually a very effective mechanism for the sale of high-value property where there is genuine uncertainty about the potential price. The fact is that appraising the value range of most properties is fairly easy to do. You do your research, investigate recent comparable sales, talk to the neighbours to get their feedback (who will of course add 30% to their own estimates, which you then deduct) and Bob’s your uncle. 
But what if the property isn’t so easy to appraise, either by the vendor or by the agent? And what if there are no recent comparable sales or current listings to go by? What if the property is a deep-waterfront with its own jetty in Point Piper and the question is not what it is worth but what someone will pay for it? (A classic contradiction in terms). 
This is when you go to tender, and the system offers significant advantages: 
<ul>
<li>No ceiling set on asking price </li>
</ul>
<ul>
<li>Tenders only attract genuine buyers and encourage them to offer their best price </li>
</ul>
<ul>
<li>Flexibility of terms and conditions of sale –the vendors set the most beneficial terms for themselves such as “settlement period up to 12 months”, but can also allow the buyer to include incentives that may be deal-breakers. i.e. “I’ll pay you $5 million and throw in my Ferrari”. </li>
</ul>
<ul>
<li>Confidentiality - Tenders submitted are confidential and the final sale price of the property or buyer’s name are not generally disclosed to the public </li>
</ul>
<ul>
<li>Tender only requires one bidder where auction requires two or more to push the price up </li>
</ul>
<ul>
<li>Sense of urgency – Tenders have a start and finish date </li>
</ul>
<ul>
<li>Tender submissions may be limited to buyers who pay a refundable cash deposit as a sign of good faith (weeding out tyre-kickers) </li>
</ul>
So what happens if the tender falls flat on the closing day and there is no clear winner? This is when the parties (and their agents) are now in a perfect position to negotiate and close the deal based on the most favourable conditions on the table.
Tim Mansfield is founder and principal of Sydney-based buyers' agency <a target="_blank" href="https://www.primepropertybuyer.com/">Prime Property Buyer</a>.
 
 
 
 
 
 
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