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;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

[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

<html><body>
The decision by the Macquarie group to sell its stake in the Charter Hall Office REIT to two sovereign funds shows the keenness of offshore investors for Australian commercial assets.
The investment bank pulled out a consortium bid it led to acquire the Charter Hall Office REIT after selling its stake in the trust to two sovereign funds that formed part of the consortium – the Canada’s Public Sector Pension Investments Board (PSP Investments) and Singapore’s GIC fund.
Both funds will inject an additional $100 million to acquire Macquarie’s share of the fund and take their investments to $400 million each, The Australian Financial Review reported.
According to Mark Wist, senior asset consultant at Atchison Consultants, the Australian market is appealing to offshore funds due to its “high yield structure, good market transparency, governance systems and the fact that it is well researched”.
In addition, while the Australian dollar has strengthened against many currencies, particurlarly the US dollar, which has “crushed” American investment, Wist points out that it has not be as strong against either the Canadian or Singapore dollar.
The decision by the two funds to up their stakes in the Charter Hall Office REIT follows Chinese conglomerate HNA Group’s purchase of 1 York Street for $117 million from Colonial First State and the Canada Pension Plan Investment Board paying $455 million for a half share of the Northland Shopping Centre in Melbourne.
The latest investments are small change for the two sovereign funds – GIC has more than $100 billion invested in global assets while PSP Investments has $55 billion of assets under management.
The consortium still has an offer on the table for the office trust after upping its bid earlier in October by 4¢ to $2.43 per unit, equating to a 7.6% discount to pro forma net tangible assets or a 4.9% discount to gross asset value as of June 30 2011.
It follows an August bid by the then Macquarie Capital Group-led consortium for the listed office trust of $2.39 per unit. This equates to $3.52 per unit when including the expected return from the sale of the trust’s US office portfolio to Beacon Capital Partners for $1.71 billion, which will conclude in May 2012.
The revised October bid includes an option to conclude the Australian sale before the US sale completes.
The Charter Hall Office REIT comprises 18 investment-grade office buildings in Australia, including flagship properties 1 Martin Place and the Citigroup Centre in the Sydney CBD, and was valued at $1.9 billion in its 2011 annual report.
Macquarie will remain an advisor to the consortium.
In July this year, the Charter Hall group won approval to continue to manage the Charter Hall Office A-REIT after unit holders voting overwhelmingly against a resolution for a management <a href="https://www.propertyobserver.com.au/news/proxy-votes-in-charter-hall-office-reit-battle-line-up-to-reject-takeover-proposal/2011072750930">takeover by a consortium of hedge funds.</a>
</body></html>

lschlesinger-FZcF9M3vE6

Macquarie pulls out of consortium to bid for Charter Hall Office REIT

<html><body>
It would seem Australia is set to live up to its global status as the “lucky country”, with the number of millionaire households expected to almost double in Australia over the next decade. 
While $1 million might still seem like a lot of money to many people who are struggling with rising household debt, and it would definitely go a long way in developing countries where you can buy a whole lot more for a whole lot less, in reality a cool million just isn't worth as much as it used to be. 
That being said, the Deloitte Center for Financial Services along with Oxford Economics studied total household wealth, including the value of a primary residence and business equity, and here are the 2011 and projected 2020 rankings of countries with the most millionaire households: 
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="71" nowrap valign="bottom">
 
</td>
<td width="428" nowrap colspan="4" valign="bottom">
 Number of millionaire households (1000s)
</td>
<td width="80" nowrap valign="bottom">
 
</td>
</tr>
<tr>
<td width="71" nowrap valign="bottom">
2011
</td>
<td width="158" nowrap valign="bottom">
Total
</td>
<td width="64" nowrap valign="bottom">
37,978
</td>
<td width="48" nowrap valign="bottom">
2020
</td>
<td width="158" nowrap valign="bottom">
Total
</td>
<td width="80" nowrap valign="bottom">
65,521
</td>
</tr>
<tr>
<td width="71" nowrap valign="bottom">
1
</td>
<td width="158" nowrap valign="bottom">
United States
</td>
<td width="64" nowrap valign="bottom">
10,541
</td>
<td width="48" nowrap valign="bottom">
1
</td>
<td width="158" nowrap valign="bottom">
United States
</td>
<td width="80" nowrap valign="bottom">
20,551
</td>
</tr>
<tr>
<td width="71" nowrap valign="bottom">
2
</td>
<td width="158" nowrap valign="bottom">
Japan
</td>
<td width="64" nowrap valign="bottom">
5,705
</td>
<td width="48" nowrap valign="bottom">
2
</td>
<td width="158" nowrap valign="bottom">
Japan
</td>
<td width="80" nowrap valign="bottom">
8,649
</td>
</tr>
<tr>
<td width="71" nowrap valign="bottom">
3
</td>
<td width="158" nowrap valign="bottom">
Germany
</td>
<td width="64" nowrap valign="bottom">
3,485
</td>
<td width="48" nowrap valign="bottom">
3
</td>
<td width="158" nowrap valign="bottom">
Germany
</td>
<td width="80" nowrap valign="bottom">
5,789
</td>
</tr>
<tr>
<td width="71" nowrap valign="bottom">
4
</td>
<td width="158" nowrap valign="bottom">
United Kingdom
</td>
<td width="64" nowrap valign="bottom">
2,904
</td>
<td width="48" nowrap valign="bottom">
4
</td>
<td width="158" nowrap valign="bottom">
United Kingdom
</td>
<td width="80" nowrap valign="bottom">
3,814
</td>
</tr>
<tr>
<td width="71" nowrap valign="bottom">
5
</td>
<td width="158" nowrap valign="bottom">
France
</td>
<td width="64" nowrap valign="bottom">
2,653
</td>
<td width="48" nowrap valign="bottom">
5
</td>
<td width="158" nowrap valign="bottom">
Italy
</td>
<td width="80" nowrap valign="bottom">
3,552
</td>
</tr>
<tr>
<td width="71" nowrap valign="bottom">
6
</td>
<td width="158" nowrap valign="bottom">
Italy
</td>
<td width="64" nowrap valign="bottom">
2,478
</td>
<td width="48" nowrap valign="bottom">
6
</td>
<td width="158" nowrap valign="bottom">
France
</td>
<td width="80" nowrap valign="bottom">
3,346
</td>
</tr>
<tr>
<td width="71" nowrap valign="bottom">
7
</td>
<td width="158" nowrap valign="bottom">
Canada
</td>
<td width="64" nowrap valign="bottom">
1,745
</td>
<td width="48" nowrap valign="bottom">
7
</td>
<td width="158" nowrap valign="bottom">
China
</td>
<td width="80" nowrap valign="bottom">
2,500
</td>
</tr>
<tr>
<td width="71" nowrap valign="bottom">
8
</td>
<td width="158" nowrap valign="bottom">
China
</td>
<td width="64" nowrap valign="bottom">
1,312
</td>
<td width="48" nowrap valign="bottom">
8
</td>
<td width="158" nowrap valign="bottom">
Canada
</td>
<td width="80" nowrap valign="bottom">
2,413
</td>
</tr>
<tr>
<td width="71" nowrap valign="bottom">
9
</td>
<td width="158" nowrap valign="bottom">
Spain
</td>
<td width="64" nowrap valign="bottom">
1,022
</td>
<td width="48" nowrap valign="bottom">
9
</td>
<td width="158" nowrap valign="bottom">
South Korea
</td>
<td width="80" nowrap valign="bottom">
1,730
</td>
</tr>
<tr>
<td width="71" nowrap valign="bottom">
10
</td>
<td width="158" nowrap valign="bottom">
Taiwan
</td>
<td width="64" nowrap valign="bottom">
719
</td>
<td width="48" nowrap valign="bottom">
10
</td>
<td width="158" nowrap valign="bottom">
Australia
</td>
<td width="80" nowrap valign="bottom">
1,620
</td>
</tr>
</tbody></table>
 
 
And there's Australia coming in at number 10 by 2020, with an expected 1.62 million households boasting millionaire status across the nation. This is more than double today's number of millionaire households (698,000.) 
Now that’s not bad when you consider that our population is significantly smaller than those of all other countries that make up the top 10. 
A large part of this new wealth in Australia will come from property. New figures from the Australian Bureau of Statistics show that Australia’s richest households are expanding their wealth three times faster than the poorest groups, and the statistics clearly reveal that wealth was more concentrated in households that own property. 
Interestingly, while some countries will continue to dominate the top of the millionaire household rankings, the rising cost of living will have a direct impact on how much those millions of dollars are capable of buying. For instance, $1 million will buy a lot less in the US than it will in China, where it will be worth more like $1.8 million comparatively speaking, given its higher purchasing power. 
Yes, I know the world is in economic turmoil, and there’s no doubt that we’re in for some interesting times ahead. 
However if the next 10 years is anything like the last 10 years we’ll have another property boom as well as a property slump. We’ll have periods of low interest rates and times when interest rates rise. We’ll probably have a change of government plus a gaggle of unforeseen hurdles put in our way to test our resolve. 
But those investors who keep their eyes on the big picture and invest in well-located properties are likely to do well and join the ranks of those new Australian property multi-millionaires.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> who create wealth for their clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
</body></html>

myardney-DFoGhGbSJX

Becoming a millionaire not what it used to be: Michael Yardney

<html><body>
Household spending and financing is now on a more sustainable path, which will ultimately benefit the health of the economy, says Ric Battellino, the Reserve Bank of Australia deputy governor.
“This adjustment in consumer behaviour has created a difficult trading environment for some businesses, coming as it has after a prolonged boom,” Battellino said.
"But the adjustment in Australia has been benign compared with the adjustments in household finances and housing markets elsewhere in the world, and it has put household spending and financing on a more sustainable path," he told Citi's third annual Australian and New Zealand investment conference today.
He suggested while it was possible that the global economic situation might take a sharp turn for the worse, "at this stage the bank's central scenario is that global GDP growth will be broadly in line with its long-run average over the period ahead.
"That would create a reasonably benign environment for the Australian economy."
He noted the recent constant theme of the bank's view that there had been a structural change in household spending and financing in Australia.
"After a 10- to 15-year period during which households increased their gearing and reduced their rate of saving, they have returned to a more conservative, and traditional, pattern of financial behaviour.
"Household credit growth has slowed to a rate in keeping with, or slightly below, the growth in household incomes,” he said.
"The saving rate has increased to a level that is more normal based on history; and household spending growth has slowed from a rate that substantially exceeded household income growth, to one that, over the past year, has been broadly in line with income growth.
"Within total consumer spending, there appears to have been a shift away from spending on goods in stores to spending on services, particularly services such as overseas travel, eating out and entertainment.
"As a result, retail sales have been particularly weak," he noted.
Battellino suggested it remained to be seen how the Australian economy would respond to the recent financial volatility and the consequent fall in confidence and the loss of wealth.
"Retail sales have picked up a little, housing loan approvals also seem to be picking up somewhat, most measures of business conditions remain around average levels and the most recent employment data have been more positive after a number of weak months.
"Nonetheless, job vacancies and advertisements are lower than their peak around the start of the year, overall credit growth remains subdued and the housing market remains soft.
"Recently, there has been some easing in financial conditions following the fall in market interest rates that has accompanied the financial volatility,” he said.
"Banks have passed through to borrowers notable declines in interest rates on term housing loans and some business loans, as their cost of funds has declined.
"Increased competition among banks in response to the increased availability of deposits and relatively subdued demand for loans has also resulted in some shaving of interest rates on standard variable mortgage loans for new borrowers.
"As a result, the interest rates on new loans are now around 10 to 15 basis points lower than they were early in the year.
"The modest net fall in the exchange rate in recent months has also, to some extent, reduced pressures on some sectors of the economy," he said.
</body></html>

jchancellor-FAypfDUnLy

Household spending more sustainable: RBA

<html><body>
The challenges facing the operators of hotels and resorts in regional markets have been highlighted in a speech today by Ric Battellino, deputy governor of the Reserve Bank. 
Speaking about the two-speed nature of the economy, Battelino told delegates at Citi's third annual Australian and New Zealand Investment Conference in Sydney that the increasing numbers of Australians heading overseas, rather than a drop in the number of foreign tourists, is hurting the tourism industry.
“Overseas trips by Australians are running about 60% higher than five years ago. Given the increase in overseas travel, it is not surprising that the traditional holiday destinations in Australia, such as the Gold Coast and North Queensland, are currently among the weaker parts of the Australian economy,” he said.
His comments come as a number of high-profile leisure assets in Queensland have been listed for sale, including 103-hectare <a href="https://www.propertyobserver.com.au/leisure/another-queensland-golf-course-for-sale/2011102351992" target="_blank">Noosa Springs development on the Gold Coast</a> and  <a target="_blank" href="https://www.propertyobserver.com.au/developments/offers-over-%2430-million-sought-for-austcorp-s-coomera-waters-gold-coast-development/2011101851986?source=flciker2">Austcorp Group’s masterplanned 476-hectare Coomera Waters development</a> on the Gold Coast.
Latest ABS figures show that Australians heading overseas outnumbered visitors by 181,000 in August, with 649,000 Australians headed overseas compared with 468,000 short-term visitors. Short-term departures are up nearly 11% compared with a year ago, while overseas visitor numbers are trending down 1% over the same period.
Battelino also noted that the commercial property sector was still dealing with the effects of over-gearing that occurred just before the GFC and would take some time to recover.
“In other sectors, such as commercial property, the weakness is mainly the result of investors and lenders having to deal with the consequences of over-gearing in the pre-2008 period,” he said.
“When too much borrowing and lending occurs, as it did in this sector, it can take many years for the excesses to be unwound. Some large adjustments have already taken place in the commercial property sector but the process probably still has further to run.”
</body></html>

Aussies holidaying abroad hurting domestic hotel operators: RBA

<html><body>
Lend Lease’s Australian Prime Property Fund has acquired the Cairns Central shopping centre in its entirety after paying $261 million to buy the 50% share held by joint owner Westfield.
Westfield’s half-share in the centre was valued at $225 million on a yield of 6% in its most recent annual accounts ending June 30, 2011.
The sale to Lend Lease will generate a healthy return for Westfield, which acquired its 50% interest in the centre in October 2006 for $160 million. Lend Lease bought its share in 2001.
The 52,725-square-metre, two-level centre was put up for sale by Westfield and Lend Lease earlier this year with a price tag in excess of $450 million. The sales campaign was run by Simon Rooney of Jones Lang LaSalle with Perpetual Trustees appointed to manage the process following a four-year dispute over management of the centre.
Major tenants of the mall include Myer, Target, Coles, BI-LO, a six-screen Birch, Carroll and Coyle cinema complex, along with JB Hi-Fi and 174 specialty shops.
The shopping centre attracts around 8.8 million visitors a year with speciality store turnover at $10,200 per square metre, higher than the average for regional shopping centres, The Australian Financial Review reports.
Besides Westfield, which bid for Lend Lease’s share of the mall, other bidders for the mall including QIC <a href="https://www.propertyobserver.com.au/queensland/amp-scouting-out-cairns-central-shopping-central/2011081651179" target="_blank">while AMP Capital Investors undertook a valuation and due diligence of the centre in August this year</a>.
The sale of Westfield’s share of the mall ends an unhappy partnership with Lend Lease – since 2007 the two companies have battled through the courts over management of the centre.
APPF’s property portfolio comprises interests in 15 shopping centres, with over 2,800 tenants and is valued at $3.7 billion. Assets include the recently upgraded MidCity centre on Pitt Street Mall in the Sydney CBD.
</body></html>

Lend Lease buys Westfield's stake in Cairns Central shopping centre

<html><body>
Commercial property requires a little more thought than residential property. But the rewards are solid, and generally, more predictable.
Simply keep these five aspects in mind when it comes to choosing commercial property.
1. Location
For commercial property, location is more than a simple matter of demographics. Each property type requires its own set of unique attributes.
For instance: retail centres depend upon road access, high foot traffic and a local population of adequate size to support its tenants. Office buildings benefit from nearby freeways or public transport, coupled with support activities nearby.
2. Tenants and leases
When evaluating a commercial property, pay careful attention to the tenancies.
A good mix of stable tenants means are greater likelihood of you collecting rent in the future. Pay careful attention to the length of each tenant's initial lease term, as well.
Having long leases is usually better than having short leases. But you shouldn't have every lease falling due at once — instead you should stagger their expiry dates, to minimise your risk.
3. Have an exit strategy
Property investors typically focus on maximising the return on their equity.
As you own a property for a period of time, you continue to build equity through both increases in the property's value and reducing your mortgage. Over time, your growth rate will stabilise –  indicating that it could be time to find a replacement property.
When buying a Commercial property, my recommendation would be to undertake a formal review every four years.
4. Make allowances for capital expenditure
In marketing commercial property, the stated net income typically excludes capital expenditure like roof replacement, or any other required upgrades. Your due diligence should flag these, and a preventative maintenance program can also help in preserving your future cash flow.
5. Liquidity vs leverage 
Most investors know that leverage (or debt) can help in the hands positive swings in the market and significantly increase your returns. Unfortunately, the use of leverage can also limit the amount of money that they have available for emergencies.
With this in mind, you should also set aside a pool of funds — to help cover up to six months’ worth of interest, if the need should arise down the track.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
</body></html>

chrislang-EQKojcgJPV

Five criteria for buying commercial property

<html><body>
This week we witnessed a high-profile agent get slapped across the wrist for “lying” about an offer.  I have to tell you, a selling agent “bending” the truth to manipulate a higher offer from a buyer is not a rare experience in real estate – or any other selling industry, for that matter.  After all, a buyer won’t increase a bid just because he appreciates the property’s attributes; however he’ll shift if he feels the heat on his neck from another “interested party”.  Sales agents won’t be slow to play on a buyer’s emotions if it means getting a higher price - they’re contractually obliged to work in the best interests of their vendor, not assist the buyer.
The vendor is paying the selling agent no meagre amount to get a premium price for their property.  While most agents won’t go out of their way to openly lie to a buyer, any advice relating to the likely sale price of a house will always come with a good degree of bias towards the vendor.  Therefore just as you wouldn’t trust the vendor’s solicitor to give you unbiased advice on a sales contract, neither should you trust a vendor’s selling agent to give you unbiased advice on price! You’ve got to do your own leg work – or you’ve got to enlist your own representative to do it for you.
The auction system claims to be a more “transparent” system of sale.  Providing the property reaches its “on market” number, the process will clearly show who is there to purchase and a figure they’re willing to pay.  However, considering most auctions in Victoria fail to be knocked down and end up being resolved via negotiation, it’s imperative buyers have a basic understanding of their rights should a property pass in.   For example, it takes just one bid from the highest bidder prior to a property passing in to grant them an exclusive right to negotiate at the vendor’s reserve.  While negotiations are ongoing, the agent may not deal with anyone else who may be willing, or able, to pay a higher price. The rule is reiterated at every auction I attend, however the message isn’t coming across.  When I see properties pass in on a vendor bid and five people immediately approach the auctioneer following the auction to embark on serious negotiation, then later in the day see the property has sold for a price higher than the vendor bid given, I can only shake my head at the lack of experience.  When this happens the agent is in the box seat – not the buyer – and as an experienced negotiator, they’ll often be able to manipulate a higher price from the buyer than they would have done had there been competitive bidding outside the property.
It’s all very well calling on the state government to place further safeguards on the industry, but it’s extremely hard to hamstring a sales agent to work fairly for both buyer and seller.  Furthermore, it’s in the government’s interests to line the coffers with hefty stamp duty payments – who’s going to worry in Parliament if a buyer pays tens of thousands over the purchase price through lack of experience?  When such issues arise, the government continually says,” We will look into it” however they will never be able to legislate that a selling agent must assist a purchaser. This would break the fundamental contractual obligation the selling agent has with their vendor.
We get a similar outcry every so often regarding price quotes. Rightly or wrongly, agents use a number of varied quoting methods to “condition” expectation. Quoting low – while unfair – is not officially underquoting.  Pricing property is not an exact equation. When a sales agent lists a property for sale he draws a fine line between market expertise – (broadly based on comparable sales) – and personal opinion. The exact requirements by law are minimal. According to the Estate Agents Act in Victoria for example, the agent is required to write an estimate of likely sale price on the sales authority. This can either be a single price, or 10% price range. This range doesn’t have to be the vendor’s asking price or – in instances where the vendor’s asking price is unknown – reflective thereof.
If an agent advertises the property under the bottom number of the estimated price range, it is regarded as underquoting. However, the agent’s price quote  is an extremely conservative appraisal of what the property can easily and comfortably achieve, not a “guesstimate” of what buyers might pay in the heat of an auction, or the vendor’s “wish” price. The vendor is employing the agent and approves of the way he quotes, markets, and advertises the property. Therefore perhaps the pressure should be placed on the vendor and if the vendor is not willing to sell within the quoted range, insist it’s changed?  However, I doubt you’ll see it happen, vendors know as well as agents how the low quoting system works to attract buyers.
While I am in full agreement of fair legislation outlawing deceitful advertising and agree whole-heartedly that an agent openly lying to a buyer about a serious offer should be frowned upon, the responsibility unfortunately falls upon the buyer to get the right advice prior to purchasing to secure peace of mind.  It would take a foolish selling agent to use deceitful tactics on an experienced licensed buyer’s agent.  Throwing out a line about some “higher” phantom offer is just too easy to debunk. We’ve seen all the tricks of the trade and know our way around each and every one of them.
Nearly every person who sells property in Victoria uses a sales agent. They pay roughly 2.5% of the sale price to employ a professional expert to market, assess and negotiate the property’s sale.  Most believe this is the best way to achieve the highest possible price in an industry where they have little expertise.  Buyers also have the option of levelling the playing field by employing their own representative.  Just as you wouldn’t stand up in court without using the services of legal counsel, so too do you risk being tripped up by the system if you purchase property without getting an experienced licenced agent to work on your side.  It’s a choice – not a requirement – but it’s one every buyer should take advantage of if they really want to avoid the pitfalls.
Catherine Cashmore is senior buyer advocate for <a target="_blank" title="JPP" href="https://www.jpp.com.au">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year.
</body></html>

catherinecashmore-6LXia3pPQj

A selling agent will never work in a buyer's best interest

<html><body>
Apartment construction turnover is forecast to suffer a slump in the next 12 months before picking up again in 2012-13, according to the Australian Industry Group/Australian Constructors Association Construction Outlook survey for October. 
Turnover generated from the construction of new apartments grew by 2% for the 2010-11 year, but is forecast to fall by 1.2% over 2011-12 before picking up by 4.8% over 2012-13. 
Demand from the resource sector will drive the construction industry over the next two years, with engineering construction turnover forecast to increase by 13% in 2011-12 and by 14.2% in 2012-13, driven by mining investment and the strong pipeline of heavy industrial projects, led by oil and gas processing. 
Overall, the outlook for construction firms is increasing, with total turnover forecast to grow by 10.3% in 2011-12 and by 12% in 2012-13, nearly double the turnover growth of 6.3% achieved in 2010-11. 
The commercial construction sector is expected to gain momentum over the next two years, but activity will continue to lag engineering construction reflecting low levels of work in planning. 
The total value of commercial work is forecast to increase by a subdued 2.4% in 2011-12 but will pick by 6.2% in 2012-13, due mainly to a stronger impetus from private-sector investment. 
While noting the very strong outlook for engineering construction AIG chief executive Heather Ridout says it also shows that the broader building and construction industry still faces many challenges.
“Residential construction remains in the doldrums and while commercial construction shows welcome signs of life, prospects very much depend on the market segment and the location,” she says.
The report also finds that construction businesses are facing increased pressures in the procurement of building materials and capital equipment and, more significantly, worsening skill shortage bottlenecks. More than two-thirds of businesses (68.8%) reported either major or moderate difficulty in the recruitment of qualified labour during the six months to September 2011.
While expressing concerns at the procurement of building materials and finding skilled labour,  Australian Constructors Association president Peter Brech<a href="https://www.wwfax.com.au/mtcgi/tracklink3.php?x=0107ABEE.02E9D075&amp;href=http%3a%2f%2fwww.constructors.com.au%2fboard-member-peter-brecht">t</a> says the prospects for the industry are positive “underpinned by robust growth in engineering construction work and encouraging signs of recovery in the commercial construction sector”.
The survey undertaken over August and September covered the responses of 100 companies employing almost 74,000 people with combined turnover of almost $30 billion or approximately 30% of total industry activity.
</body></html>

Apartment construction to slump in 2012: Industry survey

<html><body>
The economic recovery in Queensland is flowing through into surging demand for office space in the Brisbane CBD, but a recovery for the weak Gold Coast market is still some way off, according to research by CBRE. 
Deloitte forecasts the Queensland economy to grow by an average of 5.3% between 2012 and 2106, driven by demand for commodities, nearly double the forecast growth rate of NSW (2.7%) and significantly higher than that forecast for the overall economy (3.4%). 
In line with this resurgence, the Brisbane CBD office market has tightened to levels last seen in 2009, with rebounding white-collar employment and demand for space from the resources sector shrinking the overall vacancy from 9.4% to 7.4% in the six months to July 2011. 
In the prime space, the vacancy rate stands at just 4%. 
Over the six months to July 2011, the net absorption of office space was over 36,000 square metres, with prime gross rents around $750 per square metre mark and secondary rents just under $500 per square metre. 
The vacancy rate is forecast to rise to 9.5% in the first half of 2012 as new stock comes on board, including GPT Group’s One One One Eagle Street, the 54-level premium-grade office tower on the Brisbane River, which will feature 64,000 square metres of office space. 
ANZ, Ernst and Young, and law firms Gadens and Norton Rose have precommitted to an aggregate of 30,000 square metres of space in the new building.
Another building due for completion next year, Leighton Properties’ 27-storey, 28,000-square-metre King George Central A-grade office tower at 145 Ann Street, is 85% pre-committed.
 <img src="/images/stories/cbreoct24.gif">
CBRE is forecasting rental growth of approximately 4.4% per annum in the prime market and 2.2% in the secondary market until 2016. 
“Substantial” demand for office space from the resources sector has caused the Brisbane vacancy rate to tighten far more quickly than previously anticipated, according to CBRE state director for office services David Prosser. 
“There has been a noticeable flight to quality, which has resulted in a contraction in vacancy rates for Brisbane’s prime CBD office space,” he says. 
“In addition, there is a limited amount of prime contiguous floor options immediately available which has resulted in some rental growth, albeit minimal, in some A-grade buildings.” 
The picture is decidedly less rosy as one heads down the M1 freeway, with nearly a quarter (22.4%) of Gold Coast office space vacant. 
According to CBRE senior associate director of global research and consulting Craig Godber, the Gold Coast is sitting “temporarily in the slow lane of the two-speed state recovery”. 
However, positive economic forecasts auger well for the medium-term outlook – particularly as there is limited new supply set to enter the market over the next few years. 
“Growth forecasts suggest a sharp rebound for the state economy in 2012 underpinned by a surge in business investment due to a rapidly expanding resources sector and the growth of white-collar employment,” Godber says. 
CBRE senior director of office services Tania Moore says strengthening of net absorption and the absence of new supply has provided an opportunity for a tightening in the vacancy cycle to begin. 
“The stabilisation of rentals and incentives is further evidence of the market’s solid fundamentals,” she says. 
“However, given the extent to which the Gold Coast office market has fallen, the path to recovery will continue to be gradual and staggered.” 
Some pockets of the market are recovering faster than others, led by Robina, the inland suburb about 16 kilometres west of Surfers Paradise underpinned by tenant demand and an easing vacancy rate. 
Robina is likely to be the only Gold Coast precinct to witness any significant supply additions in the short term. 
“While any new additions to the broader Gold Coast market still appear years away, unless pre-commitment driven, the Robina precinct may prove to be the exception,” Godber says. 
“The rapid tightening in the precinct’s vacancy rate could support new supply by as early as next year.”
</body></html>

Brisbane office market surges ahead, leaving Gold Coast in the dust

<html><body>
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Regional towns located close to major mining and resource projects have dominated a list of locations where house sales numbers are tracking significantly above the five-year average, according to analysis by RP Data.
<img src="/images/stories/rpchart.gif">
Top of the list is Port Hedland in the iron-ore rich Pilbara in the north of Western Australia, where the median house price is $775,000 and rental yields are averaging 13%.  RP Data recorded 61 home sales in Port Hedland during the June quarter, 22 more than the 39 houses that have changed hands on average every quarter over the past five years – a 56.5% increase.
Next on the list is Isaac in the Bowen Basin coal mining region of Queensland, where 133 houses were sold over the June quarter compared to five year average of 94 house sale while third spot is occupied by the Upper Hunter Shire in NSW’s Hunter Valley, a region synonymous with coal and natural gas extraction and where house sales are tracking 38% above the five year quarterly average.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/rpdataoct25large.gif"><img src="/images/stories/rpdataoct25.gif"></a>
 
At the other end of the spectrum, the list of regions where house sales numbers have plummeted the greatest include areas affected by flooding and coastal regions affected by a drop in demand for lifestyle properties.
It is headed by the Lockyer Valley in Queensland, a region afflicted by severe flooding from earlier in the year, where sales have fallen by more than half.
However, most prominent in this list is the third-placed Melbourne’s inner-city unit market, where transactions are down 48% compared with the five year average, with 665 sales recorded compared to a quarterly average over 1,200. RP Data says this fall may be attributable to the combined effects of a slowdown in the local market as well as lower overseas student numbers.
The list also includes a number of lifestyle markets along the Queensland coast such as Cairns, Whitsunday, Gold Coast, Cassowary Coast, Fraser Coast and Sunshine Coast, which RP Data says are all “prime examples of how the sea change has pretty much come to a standstill resulting in few transactions around these coastal regions”. Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/rpdataoct251large.gif"><img src="/images/stories/rpdataoct251.gif"></a>
“The results highlight how the multi-speed economy is influencing housing markets particularly from a resources and lifestyle market perspective,” RP Data says.
“How long these trends persist is anyone’s guess, however clearly the resource driven markets are intrinsically linked to commodity prices and resource demand while any improvement across the key lifestyle markets is dependent on uplift in buyer demand for holiday/retirement homes and improved prospects for a rental return and capital gain which may start to once again attract investors.”</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News