<a href="https://www.apartments.com.au/new-apartments/smith-by-valli-collingwood-224-228-smith-street-collingwood-vic-3066">Smith Collingwood</a> is a new boutique apartment development bringing a refined, design-led approach to one of Melbourne’s most established inner-city neighbourhoods.

Designed by <a href="https://www.apartments.com.au/architects/pandolfini-architects">Pandolfini Architects</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/lisa-buxton-interiors">Lisa Buxton</a>, Smith by Valli sits on iconic Smith Street and comprises just 22 residences tailored toward owner-occupiers seeking a more considered style of apartment living.

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The design of Smith focuses on a north-facing orientation across all residences, a relatively uncommon feature in dense inner-Melbourne settings. Each apartment has been planned to maximise natural light and outlook, alongside a material palette defined by warm tones, custom joinery, and a full suite of Gaggenau appliances.

The development comprises a mix of one, two, and three-bedroom apartments, with pricing currently ranging from just under $1 million to around $4.85 million for the premium penthouse-level residences, reflecting growing demand for luxury owner-occupier product in Melbourne’s inner urban market.

Residents will also have access to a private rooftop garden designed as an elevated retreat above the city, &nbsp;featuring curated landscaping, veggie boxes, intimate seating areas and spaces for relaxed gatherings. Sustainability has also been integrated into the project through a 7-star energy rating and two secure bicycle facilities for every residence.

[smartcode_project:default project_id=140747 project_image_fid=367529]

Smith by Valli sits in the heart of one of Melbourne’s most established retail and hospitality strips, within walking distance of venues such as Falco Bakery, Carnation Canteen and Alimentari, alongside parks and everyday services. With a Walk Score of 99, the location reinforces the project’s positioning toward buyers prioritising walkability and access over car dependency.

With only a limited number of residences, Smith reflects growing demand for smaller, highly curated apartment developments that prioritise design quality, liveability, and connection to neighbourhood character.

[smartcode_project_cta:default project_id=140747]

Joel Robinson

Smith by Valli delivers design-led apartments to Melbourne’s inner north

<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.

[smartcode_project_cta:default project_id=509]

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

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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Established world city real estate markets are going to see lower capital growth in the next decade as interest rates rise, so income will be the key reason for investing, according to a new report from Savills.
The real estate firm has identified cities which are resource rich, young and fast-growing, economic powerhouses or at low risk of natural disasters as ones to watch for the next decade.
According to its maiden publication, report, Impacts: the future of global real estate, Savills says the ability of cities to attract people and talent pools will be a key indicator of income security in the next 10 years.
Savills has analysed rental growth in different real estate sectors in world cities and plotted where each stands on the new Savills rental wave.
It identifies cities and sectors which investors may want to take look at more closely for security of income and potential rental growth.
<ul>
<li>Prime office growth has been highest in San Francisco (+99%), Shenzhen and Beijing (both +71%) and London West End (+69%) since 2008. This leaves these city sectors near the top of the rental curve: in late upswing, on a high plateau or in early downswing.</li>
<li>In Singapore, double digit falls have been seen in prime offices (-26%), residential (-25%) and prime retail (-15%), leaving these sectors in or near the trough of the rental wave.</li>
<li>Hotels in Shanghai, prime industrial in Melbourne and Shenzhen residential are examples of early-stage rental growth in the current cycle suggesting further potential, but investors may face tough competition and high prices for assets in these markets.</li>
<li>Shenzhen has experienced the most rental growth in residential since the end of 2008 (+82%).</li>
<li>New and growing economic powerhouse Jakarta is near the end of the late downswing phase of the cycle and potentially offers high rental growth, but with the greater risk of a young market in an emerging economy.</li>
<li>Established investment classes in world cities, e.g. prime offices in cities like London, Tokyo and San Francisco are at the top of the wave but may offer a safe harbour for investors as rents could remain on a ‘high plateau’ for some time.</li>
</ul>
“If the 50 years of real estate investment before 2007 were about capital growth and the post GFC decade about survival and riding the recovery, the next ten years and beyond will be about security of income in a low interest rate world, with investors increasingly shifting their focus towards rental markets in world cities,” says Yolande Barnes, head of Savills World Research.
“Whether investors are looking for capital growth or stable income streams, the behaviour of rental markets is key”, says Barnes. “Rents don’t lie; they’re a function of two market fundamentals: occupier demand – put simply, where people want to be - and supply conditions. In many global investment markets, there is very little scope for further yield compression so capital growth can only come with rental growth.”
Investment funds are increasingly focused on how to pay pensions to ageing populations in advanced countries. This is a permanent shift, made more urgent in a low inflation, low interest rate era, and increases focus on the quality of income, says Savills.
By contrast, in more emerging economies, notably across China, investors are still in the phase of needing to grow portfolios, so can take advantage of growth opportunities in riskier markets. Investors need to understand the risks posed by economic trends, new technology, social change, natural threats and resource scarcity, and how these impact different real estate sectors at a city, as well as world region, level.
<a href="https://www.propertyobserver.com.au/images/2017/12/4/SavillsRentalWatch.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/12/4/SavillsRentalWatch.png" alt="">
<h3 class="p1">Understanding where cities sit in the rental cycle</h3>
The report introduces the Savills Rental Wave, which describes all possible stages of rental growth. Cities in the ‘early upswing’ are described as ones for investors to watch as they have scope for further rental growth, but Savills warns that intense competition for stock may lead to yield compression and high prices in some locations, while others are difficult for international investors to access.
On the basis of rental growth alone, Singapore appears poised for investment in many sectors, Jakarta and Perth in prime offices, Shenzhen for residential and prime retail, Shanghai for hotels, and Melbourne for prime industrial, but some of these cities are expensive and some sectors have already seen heavy investor activity pushing yields down.
In Melbourne, Savills Industrial Director for the South-East suburbs, Lynton Williams said there was an expectation that the market would start to show signs of rental growth as the significant rise in land values was factored into new developments.
“Industrial land values have doubled throughout the past five years, and rent levels for new buildings in the size range of 1,500sq m to 4,000sq m are moving up to between $95 and $100 per sq m,” he said.
“For larger buildings, particularly existing buildings more than 5,000sq m, the rental growth will be more muted until the current supply is leased up.”
Singapore prime office rents are still on average -26% below their 2007 level, says Savills, but Chinese investor demand for Singaporean assets has continued to suppress yields.Investor appetite reflects the expectation that the city could potentially become the region’s lead economic powerhouse.
Many core, world city residential real estate markets are heavily concentrated in the ‘late upswing’ phase, including London mainstream, Berlin, Sydney, Melbourne, Beijing and Tokyo, while Frankfurt and Shanghai are on the cusp of a ‘high plateau’. In this group, the highest residential rental growth of the past ten years has been in mainstream residential lettings in Shanghai (59%) and Sydney (57%) while European listings have also been strong since 2008, with Berlin up 53% and Frankfurt up 42%.
<h3 class="p2">Australia’s Property Market – front and centre on the world radar</h3>
According to Paul Craig, CEO, Savills Australia and New Zealand, Australia is very much on the world radar when it comes to property investment, with unique global drivers that are sometimes better understood by overseas investors than their domestic counterparts.
“While the price of Sydney CBD office assets, for example, has reached a level that is concerning to some, it must be remembered that Australia’s population is expected to grow by 8 per cent in the coming five years, according to the IMF, a level circa triple the average of developed peers,” he said.
“When these drivers are coupled with inherent supply restrictions, the drivers for outperformance are apparent to many.”
Throughout the past decade, the assets of Australian superannuation funds has doubled, the population in Sydney’s inner region has grown 26 per cent yet office stock in the CBD core has decreased by 4.3 per cent.
Craig said this is one example of a demand and supply dynamic that is almost without peer globally so it can appreciated why there has been a material uplift in demand from overseas purchasers in recent years.
“With Savills having three significant CBD campaigns in Melbourne and Sydney in the past few weeks, the capital expressing interest in the Australian market is becoming even more geographically diversified, signally a very wide global interest,” he said.
“While lacking the supply hindrances evident in Sydney, Melbourne’s demand drivers at present are a standout on the world stage, with population up more than 2.4 per cent over the past year, with employment rising 3.1 per cent and GDP growth of 3.9 per cent. Such demand drivers also cement the Melbourne market as a hotspot on the global stage.”
A high plateau positioning should not necessarily discourage investors, Savills says. The combination of economic stronghold and relative economic and political stability can augur well for those more concerned with stable and secure incomes than rental-driven capital growth in sectors such as prime offices in London, Tokyo and San Francisco or budget hotels and retail in Tokyo.
Savills Melbourne’s director for CBD &amp; Metro Sales, Clinton Baxter, said nowhere was this trend more pronounced than in Australia, or more specifically, in Melbourne.
“Throughout the past 10 years, Melbourne has benefitted from a phenomenal flight of capital from Asia seeking economic, political and capital stability, plus the benefit of competitive income returns,” he said.
“Melbourne protects the income and capital of global investors by a unique combination of stability supported by ongoing massive population growth resulting from its liveability, ongoing ‘Asianisation’, and first-class education and employment opportunities.”
Baxter said that as an ever-increasing number of foreign investors sought to invest in Melbourne’s growth story, values had increased and yields had correspondingly sharpened as a result of the incredible buying power of such investors, particularly those from Asia. 
“We only need a small increase in percentage terms of foreign buyers to have a profound positive impact on pricing and values in our markets,” he said.
“Areas favoured by Asia-based investors include the Melbourne CBD, Box Hill, Doncaster and Glen Waverley, where values of all forms of real estate have increased dramatically in the past five years due almost entirely to the impact of huge volumes of foreign capital.”
By contrast, high rental growth prospects likely come with far greater risk, for example Jakarta (where the metro population is forecast to exceed Tokyo’s by 2027, but whose real estate markets are still small and relatively immature on the world stage) or Shenzhen which is relatively inaccessible to many foreign investors but one of the most youthful and fast growing cities in the world.
“To correctly understand real estate risk, it’s imperative that investors understand markets at a city, and even a neighbourhood level and how that applies to each individual real estate sector. Rental growth prospects do not necessarily indicate a ‘buy’ status, particularly if the price is too high, or if an injection of new supply could tip a sector into oversupply and a rental double-dip,” continues Barnes.
<h3 class="p2">Youthful cities tipped for growth</h3>
Understanding social change is essential. Cities with youthful populations are more likely to be centres of higher education, magnets for skilled migration and catalysts for innovation and economic growth. Rental growth will follow, Savills says.
The firm has earmarked key cities in each world region where the Gen Z (15-34 year olds in 2027) to Gen X (50-69 year olds in 2027) ratio is forecast to be highest within the next decade, which include Shenzhen, Jakarta, Auckland and Austin.
<h3 class="p2">Savills cities to watch – measuring future occupier risk</h3>
Cities which rank as ‘economic powerhouse’ or ‘youthful’ are likely to offer a substantial variety of future opportunities for investors, says Jeremy Bates, head of Savills Worldwide Occupier Services. “The biggest asset in any nation’s economy is its people. But competition is intense for talented workforces in developed countries with ageing populations, while emerging economies are nurturing an increasing number of young people.
“New generations will drive occupier demand for certain types of buildings and locations. This will potentially lead to a shift in what constitutes a quality ‘covenant’ with buildings let on short leases to a deep pool of small local businesses potentially finding the most favour with investors as sources of reliable income.”
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jonathanchancellor-7SQnKwU6yx

Savills on rent watch as world city risk changes 

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Oroton stores will operate as usual after the 79-year-old luxury handbag retailer fell into voluntary administration.
"The board is disappointed that it has had to take this step after running such a comprehensive process," interim chief executive Ross Lane, the grandson of Oroton founder Boyd Lane, said in a statement to the ASX on Thursday.
"However, having carefully considered the options available to the company at the conclusion of its strategic review, it is apparent that voluntary administration is necessary to protect the Oroton business and the future of this iconic Australian brand."
The group's 62 Oroton stores across Australia, New Zealand and Malaysia, which employ about 550 staff, will continue to operate as administrators from Deloitte Restructuring Services look at recapitalising or selling the brand.
The Lane family have a 22% stake, with fund manager Will Vicars having an 18% stake.
Entities controlled by Vicars entered a put and call arrangement with Westpac to secure critical credit support for Oroton in August.
Oroton sank to a $14.3 million loss in the year to July, compared to a $3.4 million profit the previous year.
Contributing to the loss were costs linked to its wind-down of its Gap franchise after it terminated an agreement with the US apparel group.
The group's shares, which have been suspended, last traded at 43.5 cents.
The company's December 1 annual general meeting has been postponed.
The first creditors meeting is set for December 11.
"However, having carefully considered the options available to the company at the conclusion of its strategic review, it is apparent that voluntary administration is necessary to protect the Oroton business and the future of this iconic Australian brand," the board advised the ASX.
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j.ballantyne1990-6AQqhLzZaK

Oroton's 62 stores to continue trading as administrators move into luxury handbag chain

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Businessman Peter Bond has let part of his Dunk Island sub-lease lapse, but has told The Australian he is re-tendering for the site.
The Dunk Island Resort in far north Queensland was bought by Bond in 2011.
The resort and island had been devastated when Cyclone Yasi tore through that year.
Dunk Island Resort occupies 150 hectares, the largest in what is known as the “family group of islands”.
The founder of the failed Linc Energy group let the sublease on the Dunk Island Spit lapse.
Bond told The Australian he is retendering for the Spit site, which is adjacent to his luxury resort, which is almost ready for business after the cyclone.
Tenders for the Dunk Island Spit site are due February 28 next year.
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Peter Bond hopes to restart at Dunk Island

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The supermarket wars are set to set up as Kaufland has secured its first site in Melbourne.
Kaufland, a discount German retailer, has purchased an empty Bunnings site in Dandenong for $16.4 million.
Kaufland is part of the Schwarz Group, the fourth-biggest retailer in the world.
Its “hypermarket” stores are typically four to five times bigger than a Coles or Woolworths.
The Gladstone Road, Dandenong property in Melbourne’s south-east includes 12,000 square metres of retail space on 3.3 hectares of land.
The Herald Sun said Spanish-born Jon Ruiz del Portal was appointed to the Kaufland Australia board this week.
It spent $25 million to buy a major site in the fringe of the Adelaide central business district last month.
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Kaufland hits Melbourne as supermarket wars step up

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Hotel Palisade in Sydney’s Millers Point has sold to an investment firm for $31.5 million, as hotel transactions keep up their brisk pace in 2017.
The property is in one of the most historic parts of Sydney close to two of the city’s oldest pubs, the Lord Nelson Brewery Hotel and Hero of Waterloo Hotel as well as the Millers Point terrace houses, which are currently being sold off to wealthy occupiers and investors.
The freehold property was sold to First Master Capital, according to hospitality news website The Shout. It is an Epping based company with Chinese born director, Xin He.
Earlier, the Clovelly Hotel in Sydney’s eastern suburbs changed hands for $34 million, while another waterfront pub, the Beach Hotel in Byron Bay, fetched $70 million.
Hotel Palisade was renovated and reopened in late 2015, and enjoys views of Sydney’s Harbour and surrounding areas.
The renovation saw eight boutique accommodation rooms added plus a ground floor public bar, the rooftop Henry Deane Bar and Restaurant as well as some private function rooms.
The property went to the market with expectations of more than $30 million.
The hotel is perched above The Rocks and overlooks Barangaroo Reserve as the multi-storey hotel was originally bought last May by Richard Sapsford, a British entrepreneur, who paid $20 million for it.
He then spent a further $5 million restoring the 1915-built property into a botique hotel and public bar after spending eight years vacant.
In November, the hotel unveiled the Henry Deane rooftop bar and restaurant.
The selling agents were John Musca and Peter Harper of JLL Hotels.
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Hotel Palisade in Miller's Point sells for $31.5 million

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The Langer family's GLG Group has paid around $25 million to buy on High Street, Armadale.
It is more than a dozen shops running from 1167-1193 High Street.
It was in an off-market deal believed by Fairfax Media to have been struck on a yield well under 4%.
High Street, Armadale ranks as one of Melbourne's better performing retail strips with the vacancy rate falling to 3.9% in July from 6.4% a year ago, according to Knight Frank.
GLG director Campbell Blennerhassett said the site was bought because it was a "magnificent piece of land in the middle of Armadale".
It may look to refurbish the shops which were sold by a local Goodrich family.
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GLG Group make $25 million High Street, Armadale retail purchase

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Cubbyholes in the Central Coast are being offered for sale, priced from $108,000 plus GST.
The Cubbyhole concept essentially means an an industrial park comprising small, affordable work and storage spaces.
The Cubby Two is built in the Warnervale Business Park, Central Coast, where Woolworths and Sanitarium have located their distribution centres. 
It is close to MQ that connects Sydney to the Central Coast and Newcastle. 
The buildings for Cubbyhole Central Coast are set in landscaped grounds, adjoining bushland with rural views and include a café. 
There are 88 light industrial units and one residential apartment.
The video of the proposed development can be watched at <a href="http://www.cubbyhole.com.au/" target="_blank">www.cubbyhole.com.au</a>.
The listing is by Simon Mitrovich of Robinson Property.
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Cubbyhole from $108,000 on the NSW Central Coast 

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Townsville’s industrial market remains flat, according to Herron Todd White’s (HTW) recent report.
The property data firm says that industrial rents are declining.
“The industrial market remains flat with current market activity being largely confined to affordable properties that tick all the right boxes in the sub $1 million range and largely catering to intending owner-occupiers," says the report.
“There are occasional high-end syndication or trust purchases, but only for properties with strong lease profiles. Industrial rents have been on a declining trend and appear to have reached a level that is being accepted by the market," it added.
As a result of softening rents, incentives also appear to have settled to reflect rent-free periods of around three months, according to HTW.
“Broadly speaking, a large portion of mainstream industrial property falls within the $90 to $110 per square metre rental range.
“Within the lower end of this range is typically smaller older light industrial properties in Garbutt with small office components.
“Larger better quality mainstream industrial properties in Garbutt and Bohle generally fall within the mid to higher end range depending on the office size component and hardstand areas.
“Industrial property exhibiting large office components and extensive hardstand areas can reflect rents up to above $140 per square metre.
“Overall rents are flat with the market continuing to exhibit a balanced to oversupply of property available relative to current demand.
“This is likely to see downward pressure remain on rental rates until such time as the rental vacancy situation improves,” the report stated.
An industrial building at <a href="https://www.realcommercial.com.au/property-industrial+warehouse-qld-aitkenvale-501076371" target="_blank">5-7 Madden Street</a>, Aitkenvale (above) has been listed for $950,000. The listing agents are Dan Place and Mark Fitzgerald of Knight Frank.
An industrial property at <a href="https://www.realcommercial.com.au/property-offices-qld-kirwan-502465026" target="_blank">719 Ross River Road</a>, Kirwan (below) has been listed for $990,000. The listing agents are John Gribbin and Paul Kotze of John Gribbin Realty.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/28/719%20Ross%20River%20Road.jpg" alt="">
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Industrial market in Townsville remains flat: HTW

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An investment property at Salt Ash sold for $3,401,000 in another example illustrating the popularity of childcare centres.
Located at <a href="https://www.realcommercial.com.au/property-medical+consulting-nsw-salt+ash-502319846" target="_blank">2634 Nelson Bay Road</a>, the property has a secure 20 year lease to Go Kindy until February 2034.
There are two further 10 plus 10 year options until 2054.
Go Kindy has more than 12 centres across NSW and ACT.
Built in 2006, it sits on 9878 square metres of land and can accommodate 120 places.
Net income totals to $240,019 per annum plus GST with tenant paying all usual outgoings.
Major employment industries in the area includes transport, logistics, manufacturing, construction and retail.
The selling agents were Matt Kearney of Colliers International and Darren Beehag of Burgess Rawson.
It sold for $2,525,000 in 2013, according to CoreLogic RP Data.
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Salt Ash childcare centre sold for $3.4 million.

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Colliers International and Cadigal Leasing have backfilled 6,000 sqm of office space in Chatswood, as vacancy rates in the area continue to decline.
The office tower at <a href="https://www.realcommercial.com.au/property-offices-nsw-chatswood-500228557" target="_blank">475 Victoria Ave Chatswood</a>, owned by Cromwell Property Group has been one of the most recent buildings to benefit from the lack of good quality stock on the North Shore.   
Lisa Treble, director of office leasing at Colliers International and Marcus Pratley of Cadigal office leasing, have successfully back filled the 6,000 sqm vacancy left by Leightons following their move to North Sydney.
The space has been filled with tenants including Pronovate, Filtered Media, Trend Wealth and Venita with rents of $535 per square meter net.
The leasing agents said “Chatswood is seen by tenants on the North Shore as a great business hub where there is no disruption on the streets from developments. Tenants are drawn to this location as it is well equipped with the large retail precinct so close to the CBD core.”
Chatswood will continue to attract tenants whilst the surrounding office markets are continuing to undergo major developments. A large take up of office space from tenants will likely cause vacancy rates in the area to drop once again.
Chatswood will benefit greatly from the new Metro Rail line with the Chatswood to Rouse Hill section due to open 2019. This Metro station is the only one which has a direct access to the Train line without having to leave the immediate station to cross over with different transport links.
Chatswood also benefits from the large parking ratios and ease to get in and out of with it being such central catchment area for staff.
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