<a href="https://www.urban.com.au/developers/far-east-consortium">Far East Consortium</a>’s 640 Bourke Street stands as a testament to&nbsp;<a href="https://www.urban.com.au/developments/melbourne-vic-3000">Melbourne</a>’s ability to bridge its storied past with a bold vision for the future.&nbsp;

Rising above the heritage-listed Eliza Tinsley building, the development reflects a broader shift toward adaptive reuse in the city, where historical assets are retained and reinterpreted as part of new residential development.

Designed by <a href="https://www.urban.com.au/architects/rothelowman">Rothelowman</a>, <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> incorporates the Eliza Tinsley building as its foundation, housing a grand gallery and lobby space that serve as both a functional and symbolic centrepiece. The heritage façade informs the tower’s design, creating a connection between Melbourne’s past and its contemporary skyline.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=365684]

Above this historic base, the 68-storey tower will deliver just over 600 residences, a notable reduction from earlier schemes, reflecting a deliberate move toward larger-format apartments and a stronger owner-occupier focus.

Unlike traditional CBD developments that prioritised investor stock, 640 Bourke Street has been repositioned to respond to changing buyer expectations.

"The discussion was all around making 640 Bourke Street the best residence to live in, to be much more focused on the people in the building rather than people looking at the building," Marsland explained.&nbsp;

This shift is evident in the development’s interiors, which emphasise practical luxury with spacious layouts, high ceilings, and floor-to-ceiling windows framing sweeping views of Melbourne and Port Phillip Bay.&nbsp;

“What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Lauren Sheldon, Far East Consortium’s Director of Sales and Marketing, said.&nbsp;

[smartcode_project:default project_id=509 project_image_fid=365687]

Rothelowman Associate Jun Chang added, "We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."&nbsp;

Amenities spanning more than 3,000 sqm across multiple levels further reinforce this focus on resident experience. These include a pool, gym, co-working areas, and a range of hospitality-inspired spaces such as a whisky lounge, library, and private dining rooms, many drawing reference from traditional bathhouses and Melbourne’s laneway culture.

"We wanted to make both the pool and the gym area to be absolutely destinational, and when you traverse across to these spaces, there is a gentle familiarity to the beautiful notions of the hammams and the Roman baths, a gentle nod to history," Chang noted.

At street level, the project contributes to the ongoing transformation of the western CBD, with upgrades to Langs Lane and the introduction of retail, hospitality, and gallery spaces designed to activate the precinct and strengthen its connection to the surrounding city fabric.

[smartcode_project:default project_id=509 project_image_fid=365689]

The location places residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market, and the Docklands waterfront, positioning the development within a rapidly evolving inner-city neighbourhood.

"We believe it's the best site left in the city of Melbourne," Craig Williams, Executive Director at Far East Consortium, said.&nbsp;

640 Bourke Street is Far East Consortium’s 14th building in Melbourne’s western CBD.

"A very elegant designed building. It's going to be a Melbourne statement for many, many years to come."

One-bedroom apartments are priced from around $640,000, with 640 Bourke Street targeting completion in 2029.

Renders shown are Artist's Impressions correct as of May 2026.

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Joel Robinson

Heritage-led design anchors Far East Consortium’s 640 Bourke St, Melbourne

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD Group</a> has set a new residential price record in Queensland with the $30 million sale of the penthouse at its <a href="https://www.apartments.com.au/new-apartments/one-burleigh-88-the-esplanade-burleigh-heads-qld-4220">ONE Burleigh</a> development in Burleigh Heads.

The sale equates to around $37,500 per sqm.

The two-level, 800 sqm penthouse, featuring five bedrooms, five bathrooms, five car spaces, and a private infinity pool overlooking the Pacific Ocean, was acquired by a Gold Coast-based entrepreneur, highlighting continued demand for ultra-premium beachfront product.

Selling agent Freddie Tehle of PRD Burleigh Heads said the result reflects tightening supply of high-quality, large-format apartments in Burleigh.

“There’s very limited opportunity to secure this level of scale and absolute beachfront position in <a href="https://www.apartments.com.au/developments/burleigh-heads-qld-4220">Burleigh Heads</a>,” Tehle said.

“Buyers are increasingly seeking apartments that genuinely replace a standalone home, and this penthouse delivers that with its size, privacy, and direct ocean frontage.”

[smartcode_project:default project_id=146358 project_image_fid=323057]

The sale comes as construction progresses on ONE Burleigh, a boutique development of 17 full-floor residences at 88 The Esplanade, scheduled for completion in early 2027.

Developed by MAYD Group and designed by <a href="https://www.apartments.com.au/architects/mas-architecture-studio">MAS Architecture</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/sici-design">Sici Design</a>, the project has been positioned as a collection of house-sized beachfront apartments, each occupying an entire floor with around 381 sqm of internal and external living space.

When construction commenced, MAYD director Todd Mould pointed to the long-term resilience of premium coastal real estate as a key driver behind the project.

“Real estate, particularly at the premium end, remains one of the most resilient and proven long-term investment avenues,” Mould said.

“Our ambition is that anyone who buys a MAYD-built product can genuinely feel the care, craftsmanship and commitment we bring to every detail.”

[smartcode_project:default project_id=146358 project_image_fid=323055]

Each residence has been configured with four bedrooms, multiple living zones, a private office, and expansive ocean-facing terraces. Interiors draw on a restrained material palette, including travertine stone, timber joinery, and integrated premium appliances.

Interior designer Sici Design said the approach was to reflect the project’s coastal setting through both materiality and spatial planning.

“ONE Burleigh is our vision of luxury living, designed to bring the essence of Burleigh Heads' vibrant coastal beauty into an unparalleled residential experience.”

Residents will have access to a suite of wellness-focused amenities, including pools, sauna facilities, and dedicated relaxation spaces, reflecting a broader shift toward lifestyle-driven apartment design on the Gold Coast.

[smartcode_project:default project_id=146358 project_image_fid=323052]

The project occupies a southern Esplanade site with uninterrupted beachfront frontage, an increasingly rare offering in Burleigh Heads, free from the Norfolk Pines that line much of the coastline and often limit direct ocean outlook.

Mould said the design intent was to balance that outlook with a sense of retreat.

“Living at ONE Burleigh is about how your day naturally unfolds, morning light across the ocean, coffee on the balcony, and being in Burleigh but elevated above the noise.”

The result further reinforces Burleigh Heads’ emergence as one of the Gold Coast’s most tightly held and supply-constrained beachfront markets, where boutique, owner-occupier-focused developments are increasingly setting new price benchmarks.

[smartcode_project_cta:default project_id=146358]

MAYD Group sets Queensland record with $30 million penthouse sale at ONE Burleigh in Burleigh Heads

Apartment developers in the Gold Coast are finding new, creative ways to differentiate themselves from competing projects, as new supply starts to flow through up and down the Coast.

Developer BIG Projects brought in the renowned Sydney-based design studio YSG Studio to craft the interiors for The Frederick, BIG Projects' new Mermaid Beach project and YSG Studio's first move into the multi-residential development space.

[smartcode_project:default project_id=110588 project_image_fid=5346]

It was a strategic move for BIG Projects to bring in a Sydney eye to the development.

“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of BIG Projects.

“We wanted YSG Studio to capture the essence of Nobby’s, to design a building that embraces life, light and connection, while creating a genuine sense of place.”

There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;

[smartcode_project:default project_id=110588 project_image_fid=5347]

Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."

“Nobby’s has such an iconic energy, it’s one of those rare pockets of the Gold Coast where the community, the beach, and the streets all feel connected,” Ghoniem says.

"Responding to the neighbouring coastline, soothing curves add a relaxing regional overlay, while unique detailing really sets it apart. It’s a place that feels lived in from the moment you step inside.”

A standout feature of The Frederick is its rooftop terrace, an uncommon inclusion for a boutique, low-rise building, where amenity is typically concentrated at ground level.

[smartcode_project:default project_id=110588 project_image_fid=5360]

Positioned to capture panoramic views from the hinterland to the ocean, the rooftop has been designed as a series of intimate zones. It includes a pool, sauna, sun decks, workspaces and dedicated entertaining areas.

“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.

Architecture for the project was led by Plus Studio, with landscape design by LDG Landscape Architecture.

SRQ Projects Director Nick Clydsdale, who is handling sales at The Frederick, says the majority of enquiry is coming from South East QLD and Victorian buyers who have been actively searching between Broadbeach and Mermaid Beach for some time.

"They’ve reviewed a number of projects, however this one has stood out for its unique detailing and compelling design,"&nbsp;Clydsdale says.

Site demolition is slated for this month, with construction commencing soon after. BIG Projects is targeting a late 2027 completion.

[smartcode_project_cta:default project_id=110588]

Sydney’s YSG Studio makes Gold Coast multi-residential debut with BIG Projects at The Frederick

Melbourne-based property developer ALTA Property has this week achieved planning approval for the adaptive re-use of a former commercial tower into a $200 million, 169-apartment project at 10 Queens Road, one of the last developable sites along the Albert Park Lake-fronting boulevard.&nbsp;

Set within one of Melbourne’s most sought-after precincts and designed by <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser and Partners</a>, the illustrious building will offer unparalleled views across Albert Park Lake, Port Phillip Bay and Melbourne CBD.&nbsp;

The mix of 1, 2 and 3-bedroom residences will be complemented by a ground-floor amenity featuring private dining, a lounge bar, gym and wellness spaces, co-working, outdoor communal gardens, and retail.&nbsp;

The 17-storey building is a masterclass in adaptive re-use, with the existing commercial building’s façade, shell and internal structure to be retained, before high-end residences are built from the ground up in a newly built Albert Park facing addition to the building.&nbsp;

Sitting atop the building will be two 320+sqm penthouses with private rooftop terraces, which are expected to be priced between $9 - $11 million.&nbsp;

<img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="aa11211b-5581-43f9-940c-fc84d30a0e61" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/C_04.png?VersionId=Yhf5p_1EgGDu_zOIMFgvA8Ug8j3sTFQs" />

Architecturally, the building will feature a curved, geometric façade that celebrates and elevates the existing structure, with warm, muted tones which were selected to extend the materiality of the existing building rather than contrast it.&nbsp;

Interiors will bring together three metre high ceilings with waffle concrete in some spaces, natural timber, granite and Australian materials, culminating in crafted, generous and considered spaces that are defined by authenticity.&nbsp;

The adaptive re-use means that the Queens Road project will be a sustainability led, high-quality finished product, with a 62% saving in carbon emissions by re-using the existing structure rather than knocking it down and rebuilding.&nbsp;

ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;

Melbourne’s property market growth is currently led by apartments. According to RPM VIC Apartments &amp; Townhomes Market Report (April 2026), units are outpacing houses, especially in the middle ring suburbs where median prices hit $757,500 – a four-year high that represents 2.9 percent growth quarter-on-quarter.&nbsp;

<img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="647e13d7-b4bc-433a-9bc9-fe3c3dd4f2ec" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/V_06.png?VersionId=ou4NUCWUgA3NAy.6CQJlEdKX50j3dOk6" />

For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;

“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.

"With a considered project team and a premier site along one of the city’s most sought-after boulevards, we look forward to contributing to the fabric of this established address.

“Other Australian markets are getting a lot of attention, but I believe the depth of value in Melbourne is being overlooked. The fundamentals are strong, population growth is steady and, based on our preliminary conversations with a leading builder, construction costs are beginning to normalise, creating further opportunity."

Givoni says the project is a&nbsp;highly considered example of adaptive re-use, delivering quality, high-end residences, premium hotel-inspired amenities and an architecturally striking façade, all achieved without the need to remove the existing structure.

"We are really looking forward to the market’s response,” he said.&nbsp;

ALTA Property to deliver $200 million Queens Road apartment tower

Construction is set to begin at <a href="https://www.apartments.com.au/new-townhouses/orchard-mews-glen-iris-18-scott-grove-glen-iris-vic-3146">Orchard Mews</a> in Glen Iris, with&nbsp;PC Whitehall &amp; Sons&nbsp;now appointed as the townhome development moves into its next phase.

The development by&nbsp;<a href="https://www.apartments.com.au/developers/montcoeur">MontCoeur</a>,&nbsp;located at 18 Scott Grove, is now around 30 per cent sold, with completion targeted for late-2027.

Orchard Mews comprises a curated collection of three- and four-bedroom customisable townhomes, positioned within one of <a href="https://www.apartments.com.au/developments/glen-iris-vic-3146">Glen Iris</a>’ more tightly held residential streets. The low-density project has been designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo</a>, bringing together a team known for high-end residential projects across Melbourne.

[smartcode_project:default project_id=150128 project_image_fid=366285]

The development is defined by its focus on flexible living and long-term usability. Each residence includes multiple living zones and a customisable multipurpose room, allowing buyers to tailor spaces to suit changing needs, whether as a home office, additional bedroom, wellness area or entertainment space.

Architecturally, the townhomes emphasise natural light and spatial volume, with dual-aspect layouts and double-height living areas incorporated into the design. Interiors feature natural stone benchtops, premium appliances, and a neutral material palette intended to support everyday functionality rather than statement-driven finishes.

All residences are all-electric and include private lifts and secure double garages, reflecting a broader shift toward sustainability and future-focused housing in Melbourne’s established suburbs.

[smartcode_project:default project_id=150128 project_image_fid=366277]

Outdoor connections are also central to the offering, with a mix of private courtyards and terraces extending internal living spaces and integrating with the landscaped surrounds.

The Scott Grove address places Orchard Mews within close proximity to some of Melbourne’s key lifestyle and education amenities, including Scotch College, Sacré Cœur, Cabrini Hospital and the retail hub of Chadstone. Public transport access is also nearby, with trams and Gardiner Station providing connectivity to the CBD and surrounding suburbs.

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Construction to commence at luxury Glen Iris townhome project, Orchard Mews

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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Brisbane’s industrial property investment market experienced strong growth throughout 2019, with firm yields reflecting the limited availability of quality stock and solid purchaser demand, according to the February report from valuation firm Herron Todd White.
They found, whilst demand for quality industrial assets remains extremely strong, particularly for well-located properties with long-term leases and strong lease covenants, secondary properties continue to see long lease up periods and are generally less attractive in the current market. 2019 saw a shift in the Brisbane industrial market with institutional purchasers beginning to focus on areas such as the TradeCoast and along the Logan corridor.
Throughout the latter parts of 2018 and 2019, demand for industrial development sites throughout Brisbane increased substantially with increases in value evident across a number of industrial precincts.
Whilst there are still difficulties in obtaining development finance from financial institutions, this does not seem to have restricted demand in recent times.
Since the federal election in 2019 there has been a slight increase in sales volumes.
The valuers said, "we expect to see this sales activity continue to strengthen throughout 2020 due to the low interest rate environment and lack of supply within the wider Brisbane area."
"Rents continue to stay steady with no dramatic increases, particularly for net effective rentals,as incentives continue to rise. The most active segment of the market will continue to be transport and logistics with tenants gravitating towards modern properties with good access to motorways."
"The total number and value of sales fell in 2016. This was primarily due to a shortfall in supply of quality industrial assets, however sales picked up again in 2017."
"We saw a similar fall in sales in 2018 which carried over to a slower start in 2019. Since the federal election in 2019 there has been an increase in sales volumes."
"It is expected that stronger sales activity will continue throughout 2020 due to the low interest rate environment, however we do note that investors are holding on to well leased, quality assets due to the lower risk profile these properties offer."
"Investment yields for high quality assets continue to trend closer towards 6.00% with an example of a major transaction being 39 Graystone Street, Tingalpa, a well sought after location within the TradeCoast. The property had a 4.57 year lease term and transacted at $17.6 million with an analysied yield of 6.34%."
"2020 will continue to see a high demand for prime industrial properties with money coming from mum and dad investors through to major industrial institutional trusts," they concluded.
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j.ballantyne1990-6AQqhLzZaK

Brisbane industrial market will continue to see strong demand in 2020: HTW Industrial

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Looking at 2020, the general consensus is that the Melbourne industrial market will remain strong, boosted by strong population growth and unprecedented levels of infrastructure investment, according to the February report from valuation firm Herron Todd White.
The property valuation firm also noted, the global share market is expected to remain volatile with the potential for a US-China trade war, wage growth is expected to remain stagnant, there is a risk of recession and there is uncertainty regarding Britain’s exit from the European Union.
This has led to an even greater appetite for real estate investments, with industrial leading the way when it comes to investing in commercial property. The industrial sector is considered to have the strongest pull for investors, predominantly due to the rise of e-commerce.
In the case of high value industrial assets, yields remain firm due to bidding wars, particularly as there is the guaranteed cash flow of a strong WALE.
HTW reporters said, "we have seen increased interest in industrial assets from onshore and overseas real estate investment trusts and private equity firms. Some of these started out with zero industrial assets and now have these assets making up a substantial portion of their portfolio."
Knight Frank is predicting double digit growth in 2020 on the back of the continued low interest rate environment, which further advances yield compression. Vacancy rates in Melbourne also remain at five year lows.
They said, "Melbourne industrial yields are currently sitting at 5.73%, having significantly tightened through increased investor interest and capital growth is set to rise from 6% to 6.4% in 2020."
According to Savill’s 2020 outlook report, rental rates have been increasing, currently standing at $80 to $90 per square metre. Given the sustained demand at present, this rental growth is expected to continue albeit at a diminishing rate.
Lease incentives have dropped due to the consistently steady demand for industrial space.
Some smaller strata units are selling at rates around $3,000 per square metre, which is new territory for the industrial market.
HTW valuers stated, "buyers and tenants no longer seek just a warehouse to store goods; there are many considerations that factor into their decisions. These include purchasing or leasing premises close to their prime customer bases and employees with appropriate skill sets, whilst being in a prime location in order to limit transport costs and avoid the impact of slow transit times."
"Industrial properties for first time investors are becoming harder to find, however there are still reasonably priced strata developments in which mum and dad investors can purchase a unit and benefit from a strong yield and steady income."
"Industrial properties to avoid include contaminated sites as well as secondary locations, away from major infrastructure and transport routes."
"Investing in properties with long term tenants in declining industries (for example, the printing and newspaper industries) should only be pursued with the knowledge that there is a likely chance of vacancy at the end of the lease, which leads to vacancy costs and associated refit costs to attract new long term tenants," they concluded.
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Melbourne industrial market to see unprecedented infrastructure investment in 2020: HTW Industrial 

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When we look at the industrial market in Newcastle, there are five key precincts to consider in 2020, according to the February 2020 report from valuation firm Herron Todd White.
The property valuation firm found, the Beresfield precinct continues to grow with 16 hectares of land sold at the end of 2019.
There have been a number of strata and stand alone buildings constructed in this area in the past 12 months and there are a number of buildings in the planning or initial construction phase.
In the Cardiff precinct, the extension of Munibung Road with the expected link to Lake Road at the western end has seen a number of new developments at that locality, with a number of developments recently completed.
Meanwhile in the Steel River precinct in Mayfield West, there have been sales of development land, however the market for established properties has slowed.
HTW valuers said, "we also note the completion and sale of the Myspace development which is targeted at the smaller end of the market, having units with areas less than 100 square metres."
"Thornton is very stable with no significant new developments, however we note that there have been some recent sales in that area."
"Finally, the Tomago precinct, which is more suited to heavy industrial, is starting to show some signs of activity after a relatively stagnant period."
"Overall, the key issue facing the local market is the demand for quality industrial properties outstripping supply. Moreover, decreases in lending rates have the potential to lead to an increase in investor activity, however there have been very few sales to investors recently."
"We are seeing more owner-occupier sales in recent months indicating that the reduction in the cash rate is having the effect of stimulating the market," they concluded.
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Newcastle industrial market sees supply picking up in 2020: HTW Industrial

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The industrial sector has been the best performing real estate asset class in the region over the past two years and we expect this performance to continue throughout 2020, according to the February 2020 report from valuation firm Herron Todd White.
The property valuation firm found that the main risk in this sector will be one of overheating.
Most of the activity in the industrial market is being driven by the Port of Port Kembla with logistics a rapidly developing sector particularly in new vehicle transportation.
The very tight supply and escalating values and rents of industrial property throughout Sydney (notably south-western Sydney) is also impacting on the local market given its proximity to Australia’s largest city.
HTW valuers said, "given recent performance, current momentum, interest rate cuts and a strong performing local economy, we expect to see continued downward pressure on investment yields, although the challenge for investors in 2020 will be the availability of assets to purchase."
"Outside of small to medium sized strata warehouses, owner-occupiers may also struggle to find suitable premises and industrial land supply is limited at present."
"For better quality properties where demand exceeds supply, we expect there to be upward pressure being placed on rents and it will be interesting to see where market rents set for tenants who exercise options in 2020, and of course for tenants entering into new lease agreements," they concluded.
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Wollongong industrial property to remain its strongest market in 2020: HTW Industrial

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There have been minimal major shifts in Australia's industrial property markets in the past month, according to valuation firm Herron Todd White's (HTW) latest industrial property clock.
In particular markets at or near their peak such as including Melbourne and the Gold Coast held steady.
There was also no movement in the approaching peak of market category as Brisbane, Geelong and Illawarra joined Sydney and the Sunshine Coast among others.
Darwin and Perth remain the only capital city industrial markets that are not experiencing price growth.
They remain at the bottom of the market alongside Rockhampton and Townsville.
Click <a href="https://www.propertyobserver.com.au/images/2020/2/12/HTW%20Industrial%20Clock%20FEB%202020.JPG" target="_blank">here</a> to enlarge.
<a href="https://www.propertyobserver.com.au/images/2020/2/12/HTW%20Industrial%20Clock%20FEB%202020.JPG" target="_blank"><img src="https://www.urban.com.au/images/2020/2/12/HTW%20Industrial%20Clock%20FEB%202020.JPG" alt=""></a>
Hobart and Echuca held steady as the only cities in the rising market position while numerous area's including Canberra, Adelaide, Mackay and Mildura remained in the start of recovery slot.
They were joined this month by Cairns and Hervey Bay.
The Central Coast remained in the starting to decline position on the HTW Industrial Property Clock this month, accompanied by newcomer Ipswich..
Newcastle and Orange remain as declining markets, while Gladstone, Toowoomba and South West WA held steady in their approaching bottom of market slot.
In their latest report, HTW valuers said, "market commentators are suggesting that core markets on the eastern seaboard are expected to remain tightly held"
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Sydney's industrial market the most exciting to watch in 2020: HTW Industrial Clock 

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The premises that have been for nearly four decades, Lucio's Italian restaurant in Paddington were pulled from its scheduled mid-week auction, but sold the next day.
The Windsor Street building housing the famous Italian restaurant fetched $3.75 million.
The vendor, Lucio Galletto offered it with a lease back for at least a year at $120,000 per annum, with options for an extension too.
But the local paper advised the buyer intends to rebuild the premises as their home next year.
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Galletto first signed the first lease some 37 years ago.
Galletto first opened Lucios Italian Restaurant in Balmain in 1981 but moved it to Paddington two years later.
It wasn't until 2007 that Galletto bought the freehold of the Federation building from his landlords, for $2.7 million.
The Windsor Street building once housed the Hungry Horse Art Gallery and Restaurant, which served French cuisine.
 
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Lucio's, Paddington premises sold to home buyer

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EXPERT OBSERVER
This cemented a robust rebound in lending flows since the election, mainly driven by owner-occupiers (+23 per cent).
Investment loans are also up +15 per cent since the election, but from a very depleted base.
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Since the election the rebound in home loans has been driven by New South Wales (+27 per cent), Queensland (+22 per cent), and Victoria (+21 per cent). 
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First homebuyer numbers hit decade highs, even ahead of the rapid take-up of the deposit scheme in January. 
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There was also a big jump in the average loan size to $500,000, but I'm less sure of the integrity of this data trend.
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
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Housing lending ended 2019 on a high: Pete Wargent

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EXPERT OBSERVER
Canberra is set for its strongest growth market in years, following a recent surge in demand in the housing markets across the national capital.
Our latest analysis of sales activity and prices shows that the number of suburbs with rising demand is the highest in the five years we have been conducting our quarterly surveys.
Our two previous reports both found 18 suburbs with rising demand, but this new survey has identified 32 growth suburbs. The previous best was the 26 growth suburbs in the Autumn 2019 survey.
Our research also reveals good price performance, with two-thirds of Canberra suburbs delivering growth in their median house prices in the past 12months. Of the 41 Canberra suburbs with growing house prices, 24 have increased more than 5% in annual terms.
This reinforces a point I regularly make: that the generalised price data published in mainstream media (one figure to describe an entire city market) often fails to tell the full story. In the case of Canberra, most suburbs are achieving price growth well above the generalised figures quoted by research firms (mostly 3-4% for Canberra in the past year).
The overall outcome is a departure from the usual status of the national capital’s real estate market, which is one of steady, consistent performance. The surge in the number of locations where sales activity is rising suggests 2020 will be a year of above-average price performance.
Canberra’s property market continues to be underpinned by a strong ACT economy. The ACT ranked fourth among the states and territories in the State of the States report published by CommSec in January 2020, ahead of Queensland, South Australia and Western Australia – and was ranked No.1 on housing finance and employment, and No.2 on equipment investment.
The ACT consistently has the highest average incomes and the lowest unemployment rate in the nation.
Three Canberra precincts stand out for the number of suburbs with rising sales activity: Belconnen (eight growth suburbs), Gungahlin (six) and Tuggeranong (seven). The Inner North precinct also features prominently, with four suburbs with upwardly mobile markets.
With Belconnen, Gungahlin and the Inner North featuring strongly, it reinforces (yet again) that the strongest part of the Canberra market is in the north of the city.
The Belconnen District is a real standout, with eight growth suburbs and 10 others with steady sales performance. Rising markets include Dunlop, Florey, Giralang, Higgins, Holt and Melba.
It also has several of the suburbs where median house prices have grown more than 5% in the past 12 months, including Melba (11%), Macquarie (8%), Macgregor (7%) and Latham (8%).
Leading Gungahlin District suburbs for price growth include Crace (up 10%), while the suburb of Gungahlin is one of the leaders among Canberra’s apartment markets (median unit price up 14%). In the Inner North precinct, the suburb of O’Connor was Canberra’s No.1 suburb for annual price growth (median house price up 20% to $1.26 million).
While many of the top performing precincts are in the northern part of Canberra, the Tuggeranong District in the far south is an emerging market worth tracking.
With seven growth suburbs and seven others with consistent sales activity, it’s close behind the Belconnen District in terms of buyer demand. The rising markets include Banks, Bonython, Conder, Fadden, Kambah, Monash and Theodore.
Numerous suburbs in the Tuggeranong District have had solid price growth in the past 12 months, including Calwell (5%), Chishom (6%), Conder (8%), Fadden (7%), Kambah (7%) and Theodore (7%).
TERRY RYDER is the founder of hotspotting.com.au ryder@hotspotting.com.au twitter.com/hotspotting
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Canberra real estate set for its strongest growth in years: Hotspotting's Terry Ryder

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Pro-invest’s newest hotel development, the Holiday Inn Express Melbourne Southbank, launched in early February. 
It will delivery a 25 per cent reduction in energy usage compared to other typical city hotels.
In its first investment in the hotel sector, the Clean Energy Finance Corporation partnered with Pro-invest to enable the Southbank project to substantially cut its energy use and achieve a 5-star energy rating under the National Australian Built Environment Rating System (NABERS)*.
 With a contribution of about $40 million construction and term debt facility to the asset’s overall finance structure, Pro-invest lifted the design standard for the project, enabling the Melbourne Southbank hotel to target the 5-star NABERS energy rating.
It aims to be the first hotel in Australia to achieve a 5-star rated NABERS energy rating.
To help achieve the 5-star rating, the Holiday Inn Express has incorporated high-performance glazing, high-efficiency air-cooled chillers and condensing boilers and solar photovoltaic systems on the roof into the hotel development.
Other initiatives include regenerative lift drives rather than standard lift motors which will enable the hotel to recycle energy, and integrated building management and guestroom energy management systems to both monitor and drive building performance.
The CEFC investment has been used to effectively lift the project from the original target of a 4.5 star rating to a 5-star NABERS rating - producing a hotel energy consumption saving of about 25 per cent. 
Even fittings such as carpets have been selected for their environmental sustainability, with Interface flooring delivering 100% carbon neutral carpets for the hotel.  
The Melbourne hotel will build on Holiday Inn Express’ commitment to reduce use of disposable plastics – which has already seen the phasing-out of plastic straws and water bottles – by being the first Holiday Inn Express in Australia to replace miniature bathroom amenities with larger, more sustainable options. 
The new dispensers, containing high-quality shampoo, conditioner and soaps, will be introduced into the hotel from mid-year and then across the Australian Holiday Inn Express network over the rest of the year. The initiative has the potential of reducing plastic waste by over 20,000 bottles per year, per hotel.  
The City Road project features a 22-storey mixed-use development consisting of a 345-room hotel, 370m2 retail space, 4,500m2 of commercial space and car parking. 
Holiday Inn Express Melbourne Southbank is the first Holiday Inn Express hotel to open in Melbourne, and fifth in Australia, joining properties in Brisbane, Adelaide, Newcastle and Sydney’s Macquarie Park. Pro-invest is developing new Holiday Inn Express hotels in Sydney Airport and <a href="https://www.hotelmanagement.com.au/2017/04/12/pro-invest-group-develop-new-queenstown-hotel/" target="_blank" data-auth="NotApplicable">Queenstown</a> (2020), Melbourne (Little Collins Street), Sunshine Coast and Auckland (2021), Parramatta (2022) and a voco hotel in Auckland (2021).
This will grow Pro-invest’s hotel portfolio to a total of 12 hotels and 2864 rooms.
<img src="https://www.urban.com.au/images/2020/2/5/Holiday%20Inn%20Express%20Melbourne%20Southbank%20porte%20cochere.jpeg" alt="">
Pro-invest has financed and developed the Melbourne hotel, and operates all Holiday Inn Express hotels in Australia under a master franchise agreement with the IHG hotel group.  
Pro-Invest Group CEO, Ronald Barrott, said the group’s commitment to the highest levels of sustainability was driven by the opportunity to work with CEFC to establish a template for environmentally-sensitive urban hotels and also as a strong response from both investors and travellers calling for more sustainable industry initiatives.
“Our partnership with the Clean Energy Finance Corporation will see the Southbank hotel and all our future new-build hotels complying with strict energy-saving initiatives to ensure attainment of a 5-Star NABERS energy rating,” said Mr Barrott. 
“By its very nature, the hotel industry is a high energy user, with the <a href="https://www.cisl.cam.ac.uk/" target="_blank" data-auth="NotApplicable">Cambridge Institute for Sustainability Leadership</a> estimating that tourism contributes about 5% of global greenhouse gas emissions.  It’s important for new hotels to invest in energy efficiency design and construction and incorporate state-of-the-art environmental measures across the full-operation of the hotel. 
<img src="https://www.urban.com.au/images/2020/2/5/Holiday%20Inn%20Express%20Melbourne%20Southbank%20winter%20garden.jpeg" alt="">
“A 25% reduction in energy-use pays both environmental and economic dividends. It certainly requires greater investment, but in the long-term we are very confident that the measures will increase the overall value of the property. In fact, given that a recent survey indicated that sustainability was the most important factor for 52% of consumers when selecting a hotel, we believe our initiative can become a significant competitive advantage for the property and the brand.
“Investors are also increasingly demanding that hotel projects incorporate premium sustainability and energy-efficiency initiatives into development projects, and this has been reflected in CEFC’s additional investment of $50 million in the Pro-invest Australian Hospitality Opportunity Fund II – Australia’s first hospitality real estate fund to integrate energy sustainability in its investment criteria.”
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Holiday Inn Express Melbourne Southbank is Australia's first 5 star NABERS energy rated hotel

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EXPERT OBSERVER
The last few weeks have seen escalating concern that a new coronavirus (called 2019 novel coronavirus or nCoV) originating in the Chinese city of Wuhan in Hubei province will become a global pandemic.
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Concern has been heightened after the World Health Organisation (WHO) declared the outbreak an “international public health emergency” on 30 January and the number of cases has continued to escalate.
While this is first and foremost a human crisis, there has been increasing concern that the associated disruption to economic activity will trigger a global economic slump. 
Consequently, share markets have seen falls (ranging from three per cent for global and Australian shares to around seven per cent for Asian shares and 12 per cent for Chinese shares), commodity prices have fallen, and bond yields have collapsed again. 
While the current situation is highly uncertain, the experience with SARS, bird flu, swine flu &amp; Ebola highlight worst-case pandemic fears don’t usually eventuate.
What do we know about this Coronavirus
Here is a summary of information regarding nCoV:
Coronaviruses circulate in animals but can be transmitted to humans and affect the respiratory system. SARS in 2003 &amp; MERS in 2012 were examples. Symptoms can be treated but there are no vaccines or antiviral drugs for them (at present). Like SARS, nCoV looks to have originated in wildlife markets in China.
So far there are over 24,500 confirmed cases worldwide, with 99 per cent of cases in China. But the number of cases is still rising rapidly and more/faster testing could mean many more with spikes in the number of new daily cases.
So far the mortality rate is running at two per cent which puts it above swine flu but well below SARS (which settled around nine per cent). And of those dying, its mainly been older people or those with pre-existing conditions (as with common flu).
Against this, nCoV has been more contagious with total cases well above those for SARS (8000) and patients can be contagious but without symptoms for one to two weeks.
Containment measures – notably in China – have been more aggressive and started earlier than in the case of SARS. These include restricting travel into and out of Hubei province and various countries have restricted (and in some cases banned) foreign travellers entering from China.
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Past experiences
To provide some context it is worth reviewing past pandemics – both real and feared.
There were three influenza pandemics in the last century: 1918-19, 1957 and 1968. The 1957 and 1968 pandemics are estimated to have killed up to 4 million people. However, the 1918 Spanish flu pandemic was the most severe.
While the mortality rate was low, up to 50 million people died worldwide. With a big proportion of the population staying at home, economic activity was severely disrupted, although this was compounded by the ending of World War I.
US industrial production slumped 18 per cent between March 1918 and March 1919. Australian real GDP slumped 5.5 per cent in 1919-20 (but then rebounded 13.6 per cent in 1920-21). The share market impact is hard to discern given the ending of WWI, however US and Australian share markets rose through much of the pandemic period.
The SARS outbreak of 2003 is a more useful guide.
After emerging in China around February 2003, SARS infected about 8000 people (mostly in Asia) in 30 countries over a five-month period and had a mortality rate of about nine per cent. SARS had a big negative impact on the countries most affected as people stayed home for fear of catching it.
GDP in China, Hong Kong and Singapore slumped by over two per cent in the June quarter of 2003. Growth then subsequently rebounded.
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Reflecting SARS, Asian shares fell in April 2003, even though global shares started to move out of a three year bear market from March. The April 2003 low in Asian shares coincided with a peaking in the number of new cases.
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Most pandemics have taken 6 to 18 months to run their course and peter out as measures are taken to slow their spread (eg. hygiene, quarantining, banning gatherings, preventing travel). SARS ended quicker due to the nature of the virus and rapid action by authorities.
In 2005/2006, there was significant concern that a severe strain of bird flu (called H5N1), which was resulting in human casualties, mainly in parts of Asia where people had contact with chickens, would mutate into a form that was readily transmissible between humans.
However, this didn’t really eventuate and as such the economic impact was modest although it did cause bouts of volatility in share markets. Similarly, concern that the spread of swine flu would become a global pandemic rattled share markets for a while around April 2009, and Ebola did the same in 2014, but both quickly faded.
The economic and financial impact of nCoV
After strong double-digit gains over the last year and with investor sentiment pushing up to high levels indicating a degree of complacency, share markets were at high risk of a correction in mid Jan and the fears around coronavirus have provided the trigger.
Given their greater sensitivity to Chinese growth, commodity prices like Chinese shares are down by more and the Australian dollar has fallen to October lows below $US0.67. What happens from here depends on how long it takes for the outbreak to be contained. The higher number of cases than with SARS or swine flu suggests a greater economic impact.
But given the range of possibilities, the best way to get a handle on the economic and investment market impact is to consider several scenarios. Here we consider two.
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1. Containment within the next month or two – the number of cases continues to rise but it remains mainly contained to China (and Hubei) and the number of new cases starts to peak in the next month or so. This would allow travel restrictions to be removed by the June quarter. Under this scenario:
GDP in China and parts of Asia would likely take a two to three per cent hit (taking Chinese GDP growth from six per cent year on year in the December quarter to three to four per cent yoy in the current quarter) as workers stay home and travel dries up. With the Chinese economy now being four times the share of global GDP it was at the time of SARS, this along with some drag on growth in developed countries would knock world growth to around 2.5 per cent year on year (from around three per cent). However, growth would rebound in the June quarter as travel restrictions are removed and things return to normal.
Australian growth could see a 0.2 per cent hit in the current quarter mainly due to the loss of Chinese tourists (which account for 20 per cent of tourism earnings and 0.2 per cent of GDP) but also lower raw material demand and an impact on confidence. With the bushfire impact this could see GDP contract, but growth would rebound in the June quarter.
Against this background share markets, commodity prices and the $A could still fall a bit further in the near term but would quickly rebound by the June quarter. Easier than otherwise monetary and fiscal policies - with more stimulus measures already announced in China - would aid this.
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2. Global pandemic – the number of cases continues to escalate beyond China and aren’t contained until say mid-year.
This scenario would see a bigger and longer negativeimpact on economic activity. Global travel would collapse. Many would simply not come into work – a reasonable estimate is around 20 per cent of workers, although this might be spread over time.
This would see a sharp slump in global GDP and the risk of global recession. Australia would not be immune and would likely see two negative quarters of growth with flow on to education exports to China (which accounts for another 0.6 per cent of Australian GDP).
Share markets would likely fall sharply – maybe by 20 per cent or so - reflecting the huge economic uncertainty. Cash would be the place to be. The $A could fall to around $US0.60.However, economic activity would rebound quickly once it’s clear the pandemic is under control. Share markets are likely to anticipate this. But this wouldn’t occur till the second half of the year.
Concluding comment and what to watch
While there is reason for concern and it is easy to dream up nightmare scenarios, the experience with SARS, bird flu (with “predictions” it could kill as many as 150 million people) and the mini panic regarding swine flu and Ebola tell us that the worst case fears of pandemics usually don’t come to pass. Rapid containment measures provide some confidence this will be the case. As such, our base case scenario (with 75 per cent probability) is one of containment over the next month or two. This could still see more downside in share markets and bond yields in the near term, but they are likely to rebound by the June quarter as economic growth rebounds. The key things to watch are:The daily number of new cases – the SARS experience saw markets rebound once this showed signs of peaking.
The spread of new cases and deaths in developed countries – if this remains limited then markets will also get more confident that the economic fallout will be short lived.
DR SHANE OLIVER is the Head of Investment Strategy and Chief Economist AMP Capital.
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