Gold Coast-based developer <a href="https://www.apartments.com.au/developers/ignite-projects">Ignite Projects</a> has lodged a Development Application for a landmark $120 million precinct set to transform the southern gateway of the much-loved Spit.

Positioned at the most prominent entry point to the iconic peninsula, the project has been designed with a strong focus on architecture, public space, heritage and connectivity, delivering a revitalised parkland setting that invites locals and visitors to engage with the Broadwater.

Central to The Isles proposal is a significantly upgraded public realm, including landscaped open space, a new waterfront café, and a family-friendly park featuring a naval-themed playground, open lawns and improved pedestrian connections.

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="de83a270-6091-4b26-bed0-86f9248e7f9e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%201.jpg?VersionId=vt79HlCOwV9F7eLQe9.Z3bv9JGLMaSP2" />

The design retains and celebrates key elements of the site’s history. The training mast from the vacant and degraded naval cadet building, which forms part of a former Navy minesweeper, will be preserved. The existing Navy Memorial will be relocated and upgraded in collaboration with the RSL, allowing it to be publicly accessible for the first time in years. 
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Heritage-listed Humphreys Boat Shed remnants will remain and be incorporated into the landscape, while the site’s established Norfolk Pines will be retained, reinforcing the area’s character and sense of place. The enhanced parkland will ultimately create a long-term community asset at the entry to The Spit. 
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The Development Application (DA) lodged with Gold Coast City Council includes 28 waterfront apartments across three levels, ranging in size from 145sqm to 383sqm, designed as a feature landmark within the precinct and complement the public domain.

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="bbf94e00-b56a-47fb-a15d-3d17b0b1ec76" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%203.jpg?VersionId=A0vmBNE_KohYJo1EoZcmF5IVW4tT5aDo" /> 
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Ignite Projects Director Josh Foote said the project as a whole had been carefully shaped to deliver a meaningful outcome for the wider community, not just future residents. 
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“This is about more than delivering opulent apartments – it’s about creating a welcoming and memorable gateway to The Spit that people can enjoy every day,” Mr Foote said. 
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“We’ve worked hard to ensure the public realm is a central part of the project, from the landscaped parklands and family-friendly spaces through to the preservation and celebration of important local heritage.”

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="443bbde5-8221-45f8-a549-dad2623df20c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%204.jpg?VersionId=iUl6nc.sHkjMdo_1RigwbwUz_celHJ3H" /> 
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Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, The Isles adopts a considered subtropical approach, with the building form shaped to maximise natural light, cross ventilation and views to the Broadwater and surrounding parklands. 
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Architect Rafael Contreras said the design responded directly to its unique coastal setting. 
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“Rather than a typical built form, the architecture has been shaped by performance and experience – from optimising outlook and privacy to creating a strong connection to landscape and climate,” Mr Contreras said. 
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“A central landscaped courtyard allows light, air and greenery to permeate the building, while the articulated façade introduces movement and rhythm inspired by the Broadwater.

“The Isles will create a place where people can gather, relax and connect with the water, while also delivering a refined residential product that responds to its unique setting.”

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="1089570d-1120-4302-9900-fb9f75c75c26" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%205.jpg?VersionId=pl9qmKZNbaL3A7XjmD7sjhLwmXaqzzLZ" /> 
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The DA relates to the residential and public realm components, with a proposed boutique marina to be progressed as part of a future stage, subject to separate approvals. 
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The Isles is being delivered under The Spit Master Plan, a collaborative vision to create a new residential, tourism, leisure, natural environment and cultural heritage hub on the iconic and much-loved peninsula.&nbsp; 
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Ignite Projects has an established track record delivering premium residential projects across the Gold Coast, including The Monaco at Main Beach and Cabana at Palm Beach. 
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Sales for The Isles are expected to commence in coming months from an on-site display suite, with construction targeted to begin later this year, subject to approvals.

Joel Robinson

Ignite Projects unveils exciting details of landmark gateway precinct for the Spit

The Federal Government’s sweeping changes to negative gearing and capital gains tax could trigger an unintended consequence: a surge of investor demand into the new and off the plan apartment sector.

While Treasurer Jim Chalmers has framed the reforms as a way to improve housing affordability and rebalance the tax system, the carve-outs for newly built housing are already positioning off the plan apartments as one of the few remaining tax-effective property investment plays.

Under the changes handed down in the Federal Budget, investors purchasing established properties after budget night will no longer be able to access negative gearing benefits. The Government will also replace the long-standing 50 per cent capital gains tax discount with a new inflation-indexation model and introduce a minimum 30 per cent tax on gains from July 2027.

However, there is a major exemption.

Investors buying new builds, including off the plan apartments, will still be eligible for negative gearing and will be able to choose between retaining the current 50 per cent CGT discount or adopting the new indexed model.

That distinction is expected to reshape investor behaviour almost immediately.

For years, established housing has dominated investor purchases because of its perceived lower risk, immediate rental returns and stronger historical capital growth. But with the tax advantages now heavily skewed toward new housing supply, the economics are changing rapidly.

The Federal Government has been explicit about its intent.

“The housing market and tax system are broken,” Chalmers said ahead of the Budget, arguing that existing concessions were disproportionately rewarding speculation rather than supporting housing supply.

The Government says the reforms are designed to encourage investment into new housing rather than established stock, a move aimed at increasing supply during a prolonged housing shortage.

According to the official Budget papers, limiting negative gearing to newly built homes is intended to “better align tax incentives with housing supply objectives.”

For the apartment development sector, particularly the off the plan market, the changes could become one of the strongest investor tailwinds in years.

Developers across Sydney, Melbourne and Brisbane have spent the past two years battling elevated construction costs, higher interest rates and subdued investor confidence. Many projects have struggled to secure sufficient pre-sales to commence construction, particularly in markets heavily reliant on investor demand.

The Budget changes may now alter that equation.

Investors seeking tax-effective property exposure will increasingly find themselves funnelled toward newly built apartments simply because established dwellings no longer offer the same benefits.

Commonwealth Bank described the reforms as one of the most significant shifts to residential property investment settings in decades, noting that the package is centred around “limiting negative gearing for residential property to new builds” while replacing the existing CGT framework.

That could have profound implications for the apartment sector.

Off the plan apartments already hold several advantages for investors. Purchasers typically secure a property at today’s price while settlement occurs years later, allowing time for capital growth and reducing the upfront capital burden. Brand-new apartments also generally attract depreciation benefits, lower maintenance costs, and stronger appeal to renters seeking modern amenity.

Now, they may also become one of the only residential property types still offering the full suite of historical tax advantages.

Industry analysts expect investor demand to increasingly migrate toward projects that can clearly demonstrate strong rental demand, transport connectivity and long-term supply constraints.

The shift is likely to be particularly pronounced in apartment markets already underpinned by structural undersupply, including inner Brisbane, the Gold Coast, parts of Sydney’s Lower North Shore and select Melbourne precincts where new apartment commencements have collapsed over recent years.

The reforms also arrive at a time when apartment supply nationally remains critically constrained.

Australia is already struggling to meet the Federal Government’s target of delivering 1.2 million new homes over five years. Construction feasibility pressures have delayed or shelved thousands of apartments across the country, particularly as building costs remain elevated and financing conditions remain tight.

Critics of the Budget changes argue the reforms could reduce overall investor participation in the housing market and place upward pressure on rents by discouraging investment in established housing.

Some economists estimate the measures could reduce housing supply over the longer term if overall investor appetite weakens.

However, the Government is betting that redirecting investor capital into new housing supply will offset those concerns.

“To continue to incentivise construction of new housing, investors building new residential properties will be able to choose either the 50 per cent CGT discount or the new arrangements,” the Budget papers stated.

That wording has been closely watched by the development industry because it effectively positions new apartments as the preferred investment class within residential property.

For off the plan developers, the reforms could become a powerful sales tool.

Projects that have increasingly relied on owner-occupier demand may once again attract investors seeking to preserve the tax advantages still attached to newly built housing before the July 2027 changes take effect.

The reforms are also expected to sharpen the divide between established and new housing markets.

Rather than a broad investor retreat from property altogether, many analysts expect a redistribution of capital toward sectors still supported by Government incentives.

That could create stronger demand for apartment projects in key urban growth corridors and transit-oriented precincts where population growth, migration and rental shortages remain elevated.

The policy direction also aligns with the Government’s broader push toward increasing housing density in established urban areas.

Across Sydney, Brisbane and Melbourne, planning reforms are increasingly encouraging higher-density apartment development around transport infrastructure and activity centres. By maintaining tax incentives for new housing, the Federal Government is effectively reinforcing that agenda from a taxation perspective.

For apartment developers who have spent years navigating subdued investor confidence, the changes may ultimately become the catalyst that reactivates parts of the off the plan market.

While the broader property sector is still digesting the long-term implications of the Budget, one thing is already becoming clear.

The era of investors buying established apartments and houses primarily for tax advantages may be ending.

But for off the plan apartments, the investment story may just be beginning.

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Investors to flood off the plan apartment market?

Adding to Chatswood’s growing skyline, <a href="https://www.apartments.com.au/new-apartments/the-anderson-chatswood-54-56-anderson-street-chatswood-nsw-2067">The Anderson</a> is grounded in a simple principle: apartment living in a major centre does not have to come at the expense of space and outlook.

Set on Anderson Street in the heart of <a href="https://www.apartments.com.au/developments/chatswood-nsw-2067">Chatswood</a>, the new residential tower, a collaboration between developers <a href="https://www.apartments.com.au/developers/changfa-group">Changfa Group</a> and <a href="https://www.apartments.com.au/developers/huirong-group">Huirong Group</a> with architecture and interiors by <a href="https://www.apartments.com.au/architects/ajc-architects">AJC Architects</a>, will introduce 122 apartments that prioritise generous proportions, considered orientation, and a strong connection to the surrounding heritage precinct.

The design originated from a Design Excellence Competition, where AJC proposed a building that combines suburban-style apartment scale with the density expected in a transport-rich centre. The development will include more than 1,800 square metres of retail and commercial space at street level, landscaped communal roof terraces, and a ground-floor pocket park framed by canopy trees. Together these elements aim to create a building that integrates with Chatswood’s evolving streetscape while maintaining a strong residential focus.

[smartcode_project:default project_id=151353 project_image_fid=353250]

A key driver behind the architecture was the desire to deliver family-sized apartments rarely seen in the Chatswood market. The Anderson includes a mix of one to four-bedroom apartments, with around 35 per cent of the residences configured as three or four-bedroom homes. At the top of the building, two double-storey penthouses span approximately 200 square metres each, reinforcing the project’s emphasis on scale and long-term liveability for both downsizers and intergenerational households.

Orientation and outlook were central to the planning of the building. The apartments are positioned to maximise views to the north and east across Chatswood’s heritage precinct, with upper levels capturing glimpses of the Pacific Ocean. South-facing apartments gain distant views toward the Sydney CBD and Harbour Bridge, while the building’s configuration intentionally reduces western exposure at lower levels to minimise overlooking toward the nearby railway corridor.

The external design references the character of the surrounding conservation area without replicating it directly. A brick podium anchors the building to the street and introduces a series of architectural portals that draw inspiration from the nearby Chatswood Presbyterian Church. Above this base, the tower shifts to a lighter, more open expression defined by horizontal lines and carefully detailed balconies that balance privacy with outward views.

[smartcode_project:default project_id=151353 project_image_fid=353254]

Toward the top of the tower, AJC introduces a distinctive lantern-like element formed by sliding screens. These screens provide both solar shading and privacy while also creating a visual marker for the building within the Chatswood skyline. The feature reinforces the architectural intent of the project, a structure that is visually refined while still responding to the practical requirements of apartment living.

Inside the residences, interior architecture focuses on clear spatial flow and practical everyday use. Open-plan living areas connect directly to large balconies, extending the internal living spaces outward and allowing natural light to move deeper into the apartments. Kitchens are designed as central working spaces with premium appliances and carefully selected materials, positioned to serve both daily living and entertaining.

[smartcode_project:default project_id=151353 project_image_fid=353256]

Bathrooms follow a similarly restrained design language, using refined fixtures and materials to create calm, functional spaces, while wardrobe areas adopt a gallery-style layout with integrated lighting and generous storage. These elements reflect a broader design approach that prioritises clarity, functionality, and durability over decorative gestures.

Positioned just a short walk from Chatswood Interchange, residents will have direct access to rail, metro, retail, and dining. The Metro extension allows travel from Chatswood to Martin Place in approximately 11 minutes, placing the CBD within easy reach for residents while maintaining the convenience of a walkable North Shore neighbourhood.

One-bedroom apartments at The Anderson start from $1,022,000.

[smartcode_project_cta:default project_id=151353]

How AJC designed The Anderson to bring oversized apartment living to Chatswood

<a href="https://www.apartments.com.au/developers/bridgewell-development">Bridgewell Capital</a> has lodged plans for a major mixed-use apartment development in the heart of Maroubra, seeking a significant uplift in height and density controls to deliver 120 apartments and a 120-place childcare centre near Maroubra Junction.

The State Significant Development application, filed through the NSW Government’s Housing Delivery Authority pathway, covers a 3,270 sqm amalgamated site at 251-257 Maroubra Road and 133-135 Garden Street. The proposal includes a concurrent rezoning that would increase the maximum building height from 12 metres to 35.6 metres and lift the floor space ratio to 4.02:1.

Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the project would replace a mechanic’s workshop and several detached homes with a 10-storey residential building above four basement levels.

The scheme comprises 120 apartments, including 27 affordable housing units to be managed by a community housing provider for 15 years, alongside 203 basement car spaces and 92 bicycle spaces. A childcare centre occupying nearly 900 sqm of floor area would sit at ground level and be capable of accommodating 120 children and 22 staff.

<img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="038a0639-f9e4-4303-8fcc-d43e73fa480f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20pers.png?VersionId=eGBElxmNqJW.YF3JFYgHTnPgAstdyXR3" />

According to the Design Report, the project has been conceived as a “gateway proposal” that responds to Maroubra’s evolving urban character and its proximity to the town centre.

“Designed to complement the character of Maroubra’s town centre, this gateway proposal features a building scale that matches its surroundings,” the report stated.

“It integrates residential units above a ground-level childcare centre, fulfilling the strategic objectives of the Randwick City Council Masterplan.”

The apartment mix is weighted toward larger residences aimed at families and downsizers, reflecting changing demographics in the Randwick LGA and increasing demand for medium-density housing close to transport and amenity.

BKA Architecture said the proposal seeks to reinforce Maroubra Road as a civic spine while improving the pedestrian experience around the site through landscaping and upgraded public interfaces.

“The design capitalises on the following site opportunities: reinforcement of Maroubra Road as a civic spine, enhancement of pedestrian pathways and the public interface via new landscaping, and strong market demand for two and three-bedroom apartments to support families and down-sizers,” the Design Report noted.

<img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="ee509779-3c7e-4918-b03d-761c785459d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20site.png?VersionId=eZC4Ruyn.C7O.Qwfr1SVeP5.ds1c5.66" />

The building has been designed with setbacks and articulation intended to transition between the commercial intensity of Maroubra Junction and the surrounding lower-scale residential neighbourhoods. Communal open space is proposed on level one, while upper-level apartments would secure views towards Port Botany, Maroubra Beach and Sydney’s eastern suburbs.

The development sits around 200 metres east of the Maroubra Junction intersection of Anzac Parade and Maroubra Road, within one of Randwick’s identified strategic centres. The site is close to Pacific Square Shopping Centre, major bus routes, schools, parks and future cycling infrastructure proposed under the Maroubra Junction Masterplan.

The Maroubra proposal aligns with broader NSW Government initiatives encouraging higher-density housing near established centres and transport corridors, particularly where affordable housing is incorporated.

Bridgewell is also working on a <a href="https://www.apartments.com.au/news/qld/goldfields-sets-the-stage-as-quartet-milton-launches">new 55-unit project in Killara</a>.

First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre

National diversified developer <a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has launched its latest Brisbane apartment project, <a href="https://www.apartments.com.au/new-apartments/quartet-milton-33-manning-street-milton-qld-4064">Quartet Milton</a>, marking its entry into the sought-after inner-city suburb just two kilometres from the CBD.

The circa $100 million development will rise 18 storeys and deliver 131 apartments, offering a mix of one, two-, and three-bedroom residences.

Ideally located on Manning Street, Quartet residents will be within 300 metres of Milton Station, 500 metres from the Milton Ferry Wharf, and a short walk to Milton Markets, the iconic Park Road, as well as a range of breweries and cafés.

[smartcode_project:default project_id=108736 project_image_fid=367993]

Designed by architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and brought to life by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, the building features a simple, gridded façade paired with generous glazing to enhance views, maximise aspect, and capture both sunrises and sunsets from within the apartments and their generously sized balconies.

Residents will have access to a 1,000 sqm rooftop, curated to balance wellness and entertaining, in response to increasing demand for wellness-focused shared spaces.

"We've approached Quartet Milton as a complete lifestyle offering, not just apartments, but a place where the design, amenities, and location all work together in a meaningful way," says Goldfields Managing Director Lachlan Thompson.

"Buyers are looking for that sense of confidence, knowing the vision has been carefully thought through not just by us as developers, but by all our consultants appointed to bring this together, and that it will be delivered to the standard they expect."

[smartcode_project:default project_id=108736 project_image_fid=368000]

Cera Stribley Co-Founder and Managing Principal Domenic Cerantonio said the rooftop is designed to feel like a place "you'd genuinely use every day."

"A 25-metre pool framed by city and mountain views, wellness areas, and private dining spaces for evenings with friends create a setting designed for year-round comfort and effortless Brisbane living."

[smartcode_project:default project_id=108736 project_image_fid=367999]

In addition to the 25-metre pool, the rooftop will include a sauna, cold plunge, fully equipped gym, and zen gardens, all complemented by panoramic views of the city and river.

While the building is expected to appeal predominantly to owner-occupiers, Goldfields anticipates interest from investors seeking strong rental returns, driven by the project's design, location, and the city's projected capital growth in the lead-up to the 2032 Brisbane Olympics.

[smartcode_project:default project_id=108736 project_image_fid=367991]

<a href="https://www.apartments.com.au/developments/milton-qld-4064">Milton</a>, widely regarded as one of Brisbane's most desirable inner-ring suburbs due to its lifestyle offering and proximity to the CBD, has experienced a shortage of new apartment supply in recent years.

Goldfields is already active in the Brisbane residential market through its Ripley Valley masterplanned community, Hayfield. The 109-hectare neighbourhood is already home to more than 300 families and features a large community park.

Plans for the precinct include a 4 km running track, future schools, and retail and commercial amenities, all within a 35-minute drive of the Brisbane CBD.

Goldfields also plans to deliver a new mixed-use tower at 88 Robertson Street in Fortitude Valley, within the James Street precinct. The project will include 16,000 sqm of boutique commercial space, a level of wellness facilities, and a rooftop restaurant and event space, akin to Goldfields House in South Yarra, its flagship mixed-use development on Chapel Street, which is crowned by the Beverly Rooftop bar, one of Melbourne’s best-known venues.

[smartcode_project_cta:default project_id=108736]

Goldfields sets the stage as Quartet Milton launches

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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Arts, music and eating out have emerged as the favourite spends for Australians looking for experiences to spend their disposable dollars on, according to new data released by NAB. 
The Customer Spending Behaviours report, based on around 2.7 million daily consumer transactions, found creative services such as performing arts and music had the fastest growth at 35.3 per cent followed by accommodation and food at 26.7 per cent. Experiences include buying theatre and concert tickets, eating at cafes and restaurants and staying at hotels.
NAB chief economist Alan Oster said the report gave an important insight into household budgets across the country. The report analysed the spending behaviours of its customers, excluding things such as mortgages, other credit repayments and government services.
“By examining such a large number of daily transactions, we can show where spending is growing fastest, even down to a postcode, and what our customers are spending it on,” Oster said. 
<a href="https://www.propertyobserver.com.au/images/2017/09/26/NABSpending1.png" target="_blank">Click to enlarge</a>
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The report also found consumers had boosted their average monthly spending during the quarter to $2,064 in metropolitan areas ($1,997 in Q1 2017) and $1,918 in regional areas ($1,866 in Q1 2017). 
In addition, it showed spending on consumption-based goods and services by NAB customers grew by 3.9 per cent over the year to Q2 2017, accelerating from 2.0 per cent over the year to Q1 2017. 
“Customer spending growth improved in all metropolitan and regional areas (except Tasmania), with overall spending growth in regional areas continuing to outpace cities,” Oster said. 
“Perhaps lower mortgage debt in regional areas is freeing up more disposable income for these consumers resulting in faster growth.” 
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Oster said retail trade is still a key part of the spending patterns but growth is increasingly coming from consumers wanting to head out to have meaningful experiences. 
“We can see consumers are getting out of the house, spending their disposable income on eating out, staying at hotels and enjoying music and the performing arts,” Mr Oster said. 
“This was particularly seen in Victoria, where growth was fastest in the suburbs of Hurstbridge and Garfield, followed by Quakers Hill in NSW.” 
Customer spending growth improved in Q2 2017 in all metropolitan and regional areas (except TAS). By state, VIC, NSW and QLD contributed around 98% of total growth in customer spending in Q2. Growth was fastest for Arts &amp; Recreation and Accommodation &amp; Food. 
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jonathanchancellor-7SQnKwU6yx

Consumers spending their disposable dollars on experiences: NAB 

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GUEST OBSERVER
The equation doesn’t look pretty. Traffic congestion costs us <a href="https://bitre.gov.au/publications/2015/files/is_074.pdf" target="_blank">billions of dollars</a> each year – so we are told – and population growth is not letting up. When road rage meets large economic costs, it’s little wonder our politicians are desperate to do something.
The trouble is, too often that “something” is a great big new freeway. Building more roads <a href="https://theconversation.com/do-more-roads-really-mean-less-congestion-for-commuters-39508" target="_blank">isn’t the best answer</a>, because the roads we have are mostly up to the job – if only we could make better use of them by spreading traffic out beyond the morning and evening peaks.
Instead of focusing on freeways, governments should change the way we pay for urban roads and public transport. To work out how best to do this, the Grattan Institute <a href="https://grattan.edu.au/wp-content/uploads/2017/10/892-Road-congestion.pdf" target="_blank">has looked at</a> several million Google Maps estimates of travel times in Australia’s largest cities. This analysis reveals both the extent of the problem in Sydney and Melbourne and its city-specific characteristics
For many, the problem is minor
The truth is, for a lot of people, road congestion doesn’t matter much. This is because most people work in a suburb close to where they live.
Chart 1 shows congestion delays for Sydney’s 146 most-common commuting trips.
Chart 1: For many Sydney commuters, congestion is very modest
Additional minutes compared to free flow <a href="https://cdn.theconversation.com/files/188305/area14mp/file-20171002-12155-1detu38.png"><img src="https://cdn.theconversation.com/files/188305/width754/file-20171002-12155-1detu38.png" alt=""></a> The horizontal black line in the coloured bar is the median of all journey-to-work routes, weighted by the number of people who used a car to travel to work on those routes in the 2011 Census reference week. Trip times were estimated by assuming all travel between suburbs was between representative addresses for each suburb. Routes with fewer than 400 such commuters are not included. Grattan analysis of Google Maps, and ABS (2011)
The average delay is small: an average commute at the busiest time of day takes around three minutes longer than the same trip in the middle of the night.
While some commutes are delayed for much longer, it is unusual for trips to take more than ten minutes extra in peak periods.
<h2>Congestion is a problem in the CBD and inner suburbs</h2>
Unsurprisingly, the story is different, and worse, in and around central Sydney and Melbourne. Add in all the trucks and vans, students and tradies, shoppers and people going to appointments, and typical delays for travel on CBD-bound journeys are substantially greater (Chart 2).
Chart 2: On commutes into Sydney’s CBD, the average morning-peak delay is 11 minutes <a href="https://cdn.theconversation.com/files/188306/area14mp/file-20171002-12163-u7fwz0.png"><img src="https://cdn.theconversation.com/files/188306/width754/file-20171002-12163-u7fwz0.png" alt=""></a> The horizontal black line in the coloured bar is the median of all journey-to- work routes, weighted by the number of people who used a car to travel to work on those routes in the 2011 Census reference week. Trip times were estimated by assuming all travel between suburbs was between representative addresses for each suburb. Routes with fewer than 400 such commuters are not included. Grattan analysis of Google Maps, and ABS (2011)
The trends are similar in Melbourne. Travel on CBD-bound journeys is much more delayed than to non-CBD locations.
Chart 3 also shows that delays are noticeably larger in the suburbs that immediately surround Melbourne’s CBD.
Chart 3: Travel in suburbs surrounding the Melbourne CBD is highly delayed
Increase in travel time relative to free flow travel time <a href="https://cdn.theconversation.com/files/188307/area14mp/file-20171002-12132-ps1pb5.png"><img src="https://cdn.theconversation.com/files/188307/width754/file-20171002-12132-ps1pb5.png" alt=""></a> Average delay is calculated as the ratio of trip duration at each point throughout the day to the minimum trip duration observed for that route over the sample period. Based on travel time of representative route samples collected via Google Maps. Weekends and public holidays excluded. Grattan analysis of Google Maps
<h2>Some commutes are frustratingly unpredictable</h2>
Most travellers don’t just care about how long a trip usually takes. How long it could take also matters.
Chart 4 shows that Melbourne’s Eastern Freeway/Hoddle Street corridor has not only some of city’s worst delays, but also some of the least-predictable travel times. Motorists from suburbs to the north-east have to juggle these less-reliable travel times more than those travelling similar distances from other directions.
Chart 4: Travel on routes to Melbourne’s CBD that rely on Eastern Freeway and Hoddle Street are noticeably delayed and unreliable
Increase in travel time as a proportion of free-flow travel time, weekday morning peak, commutes into Melbourne CBD <a href="https://cdn.theconversation.com/files/188308/area14mp/file-20171002-12115-g3b13o.png"><img src="https://cdn.theconversation.com/files/188308/width754/file-20171002-12115-g3b13o.png" alt=""></a> For travel departing between 7am and 9 am. Excludes weekends and public holidays. The boxes cover the 25th to 75th percentiles. The vertical line in each box lies at the median for each city. The ‘whiskers’ on each side of the boxes extend no further than plus or minus 1.5w where ‘w’ is the box width. Observations beyond the lines are plotted as dots. Grattan analysis of Google Maps
<h2>New roads are not the whole answer</h2>
Congestion tends to be worst in the most built-up parts of Sydney and Melbourne, where it would be most costly to construct new roads. This means that even crippling levels of congestion might not justify the construction of astronomically expensive infrastructure.
In any case, new roads often take years to build and can fill up with new traffic of their own.
New roads are important, however, in new suburbs.
The rule for our policymakers should be: build a road whenever the community will gain more from the new road than it will cost, and whenever the new road is a better option for the community than extracting more from the roads we’ve already got. But do not think of new roads as congestion-busting.
<h2>So what should be done?</h2>
Changing the way we use our existing infrastructure through pricing needs to be at the top of the agenda. This mean charging motorists for the congestion they cause.
Sydney and Melbourne need to consider introducing a congestion charge. That doesn’t mean more toll roads – it means charging people who drive at peak times on congested roads a small fee.
Because some people wouldn’t think it worth paying the charge at the busiest times of day, those who did pay would get a quicker and more reliable trip. People who can travel outside of the peaks would not have to pay, because there would be no congestion charge when the roads are not congested.
The increased cost to drivers could be offset by cuts to car registration fees. And any extra money raised by the congestion charge could be spent improving train, tram, bus and ferry services.
International examples show that introducing a congestion charge need not amount to political suicide. An initially sceptical public came quickly to accept, value, the reform when it was introduced in <a href="https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.20.4.157">London</a> and <a href="https://www.transportportal.se/swopec/cts2014-7.pdf">Stockholm</a>.
<img src="https://counter.theconversation.com/content/84774/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">The congestion equation for Sydney and Melbourne is only going to get more ugly as both cities continue to grow. We need more sophisticated policymaking to ease drivers’ road rage and frustrations.
<a href="https://theconversation.com/profiles/marion-terrill-169480">Marion Terrill</a>, Transport Program Director, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> and <a href="https://theconversation.com/profiles/hugh-batrouney-318476">Hugh Batrouney</a>, Senior Associate, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/stuck-in-traffic-we-need-a-smarter-approach-to-congestion-than-building-more-roads-84774" target="_blank">original article</a>.
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Stuck in traffic: we need a smarter approach to congestion than building more roads

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The office markets in Sydney and Melbourne are moderating after their strong run in 2016 while Brisbane and Canberra are picking up, according to the latest research by Cushman &amp; Wakefield.
The property agency’s national head of Office Leasing, Tim Molchanoff said: “During Q3, we saw a mild convergence across east coast office markets, as Sydney and Melbourne growth moderated from strong gains in 2016, while Canberra and Brisbane are picking up pace. A different picture is starting to emerge compared to 6 months ago.”
In Sydney, big deals were a key driver this quarter as major tenants moved to take up space in the CBD. In Melbourne, the big landlords competed for pre-commitments as major office developments continued at pace, he added. 
“For Brisbane, the recovery continues with vacancies modestly tightening in the prime market with tenant favourable conditions driving office upgrades,” said Molchanoff. 
Canberra saw the completion of Cromwell’s 30,000 sq m A-grade Tuggeranong development.” 
<a href="https://www.propertyobserver.com.au/images/2017/10/03/CushmanOffice.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/03/CushmanOffice.png" alt="">
Following are the highlights from the 3rd quarter report.
Sydney – big lease deals return in Q3/ Prime rent growth bounces back
<ul>
<li>Vacancy declined, with the Premium rate compressing 300 basis points to 9.5%, while A grade at lowest rate (3.6%) since mid 2008.</li>
<li>Prime gross effective rents at $916 per sqm - up 1.6% QoQ and 6.9% YoY</li>
<li>Major deals: Clayton Utz renewed 17,000sq m (premium) at 1 Bligh St. Jobs for NSW signed on to 17,000 sq m (B-grade) at 11-31 York St </li>
</ul>
Melbourne - prime vacancy tightens, rents increase/developers vye for large tenants
<ul>
<li>Prime net effective rents at $376 p/sq m p.a - up 1.2% QoQ and 6.9% YoY.</li>
<li>In Q3, prime outgoings rose 7% QoQ, B grade outgoings up 10% as landlords passed on higher land tax expenses</li>
<li>Landlords jostled to secure large requirements with developers like Lendlease and Mirvac behind 12 CBD office towers under construction or approved</li>
<li>Major deals include: Recoveriescorp taking 3,562 sq m and Latitude Financial taking 9,744 sqm at 800 Collins</li>
</ul>
Brisbane – prime market leading the recovery
<ul>
<li>Prime gross effective rents have remained steady at 1.1% growth y-o-y</li>
<li>Annual net absorption saw prime vacancies decline from 15.5% to 11.7%.</li>
<li>Major deals: Deloitte renewing 6,000 sqm (premium) at 123 Eagle St, DSITI taking 3,000 sqm (A-grade) at 140 Creek St and QLD Electoral commission taking 1,822 (premium).</li>
</ul>
Canberra - New development completed in Tuggeranong
<ul>
<li>$352 prime gross effective rent (per sqm)</li>
<li>5.2% State Final Demand growth (annual avg) led all services sector states</li>
<li>Major deals: Cromwell’s 30,000 sq m A-grade development completed and will be occupied by the Department of Social Services from late Sept 2017</li>
</ul>
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Sydney, Melbourne office markets moderating: Cushman & Wakefield

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Raine &amp; Horne Commercial WA director Anthony Vulinovich has been named the state’s leading commercial property sales agent at the 2017 REIWA Awards for Excellence announced recently.
Vulinovich’s strategic approach was evident in his pre-sales to market large numbers of industrial lots within Northlink Industrial Estate at Wangara, Canning Vale’s Swan Brewery Estate Canning Vale and Tonkin Highway Industrial Estate in Bayswater.
Terry Menage, director, Raine &amp; Horne Commercial WA said that Vulinovich stood out from the crowd because of his great pre-sale work to secure buyer interest on behalf of land developers and as far as possible, “de-risking the land subdivision before development”.
“There are many hundreds of commercial sales agents in Western Australia, so this is a terrific win for Anthony and testament to his hard work and strategic commitment to selling commercial real estate over many years,” said Terry Menage, director, Raine &amp; Horne Commercial WA.
The ceremony was organised at a Crown Perth gala dinner.
“We sold pre-title over $40 million worth of land in the Tonkin Highway Industrial Estate, Perth, which is the city’s latest inner metropolitan industrial opportunity,” said Vulinovich.
Other significant sales in the last 12 months included a 35,500 square metre industrial site at 10 Craft Street, Canning Vale, which was purchased by Sigma Healthcare for $11.557 million. Raine &amp; Horne Commercial WA also sold 9 Brewer Road, Canning Vale to St Vincent De Paul Society WA Inc. for $5.454 million.
“These instructions have singularly resulted in Raine &amp; Horne Commercial WA, being the largest transactor of private industrial land subdivisions in the Perth metropolitan area over the last few years,” said Vulinovich.
Angus Raine, executive chairman of Raine &amp; Horne Group said that Vulinovich and Menage managed the numbers in spite of the economic downturn in Western Australia.
“It’s well-documented that times have been challenging, yet Anthony and Terry have managed to double their sales numbers and commission revenues over the last 3 years,” said Raine.
 
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Raine & Horne’s Anthony Vulinovich named WA’s best commercial agent 

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<div>When I first came to Sydney in the 1990s, there was a lot of talk about housing being expensive, although in truth it was still possible buy decent blocks of land reasonably close to the city, at least in the less fashionable inner western suburbs.</div>
<div> </div>
<div>I can also remember years ago reading a blog by Property Update contributor Stuart Wemyss, which argued that although some parts of Melbourne were evidently expensive, most of the talk about oversupply and a property bubble was just short term noise. </div>
<div> </div>
<div>Wemyss highlighted a very similar point: you could still find decent blocks of dirt close to the city, for a price that wasn't absurd - demonstrably not the case in many so-termed 'global cities', which Melbourne aspires to become - and over the years he was proven right.</div>
<div> </div>
<div>I feel a bit the same about Brisbane today.</div>
<div> </div>
<div>Sure, there are some suburbs that are expensive, as you would expect with the Greater Brisbane population approaching 2.5 million. </div>
<div> </div>
<div>But you can still find blocks of land reasonably close to the city, within a 6-8km radius of the CBD, for a relatively good price. </div>
<div> </div>
<div>Of course, there will be ups and downs, but over the next couple of cycles the right property types and locations will likely perform very well, in my opinion, especially in good school zones. </div>
<div> </div>
<div>Although some areas have been overbuilt with high rise apartments, south-east Queensland will offer some of the best opportunities over the decades ahead, as it expands as a population hub and becomes more popular with Asian migrants. </div>
<div> </div>
<div>The forthcoming Commonwealth Games will be a plus too.</div>
<div> </div>
<div>Slump, and rebound</div>
<div> </div>
<div>Queensland has always attracted migrants from interstate, and as the resources mega-projects kicked off through the early years of the mining boom, the Sunshine State was pulling in tens of thousands of internal migrants per annum. </div>
<div> </div>
<div>These were unbridled boom years both for Queensland's economy and Brisbane housing.</div>
<div> </div>
<div>From 2010, demand for Brisbane housing slumped, broadly in tune with internal population flows.</div>
<div> </div>
<div>Unfortunately, with apartment projects often taking an age from approval to completion, this was also a time at which many interstate investors settled on new units, which are now under water, figuratively speaking (not only in Brisbane, but in other parts of Queensland too). </div>
 
<div class="separator"><a href="https://2.bp.blogspot.com/-d0I2CmhdgPk/Wc9CDDm3V6I/AAAAAAAAmYM/Pk3tVR5P5YMB9zNT-8oVgi4R06aVWBMSQCLcBGAs/s1600/QLD2.jpg"><img src="https://2.bp.blogspot.com/-d0I2CmhdgPk/Wc9CDDm3V6I/AAAAAAAAmYM/Pk3tVR5P5YMB9zNT-8oVgi4R06aVWBMSQCLcBGAs/s640/QLD2.jpg" width="640" height="380" data-original-height="758" data-original-width="1271"></a></div>
 
<div>More literally speaking, Brisbane experienced severe floods in 2010-11, which arguably exacerbated a downturn that was already in the post as LNG projects approached completion.</div>
<div> </div>
<div>By March this year, estimated interstate migration to Queensland had risen to its highest level since 2009.</div>
<div> </div>
<div>So, what's going on? It's partly a function of the housing market cycle, with Sydney now expensive, and congested.</div>
<div> </div>
<div>Another boon for Queensland is that took its capex downturn medicine earlier than Western Australia, so although it was painful, the drag has now ended, with roads and other infrastructure projects having kicked off.</div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-14swRzkG8Sg/Wc9rrn08RXI/AAAAAAAAmYk/zodXh_b89Ns1Mm_M21U6coYIVx8ybiRigCLcBGAs/s1600/ENG.jpg"><img src="https://1.bp.blogspot.com/-14swRzkG8Sg/Wc9rrn08RXI/AAAAAAAAmYk/zodXh_b89Ns1Mm_M21U6coYIVx8ybiRigCLcBGAs/s640/ENG.jpg" width="640" height="380" data-original-height="825" data-original-width="1386"></a></div>
<div> </div>
<div>And, after a terrible lull, Queensland employment is suddenly now picking up, rising by an <a href="https://petewargent.blogspot.co.uk/2017/09/jobs-explosion-shatters-forecasts" target="_blank">outsized +95,400 over the year to August 2017</a>. And population growth is in turn ramping up just as dwelling starts now collapse, helping to rebalance the ratio of demand to supply. <div class="separator"><a href="https://1.bp.blogspot.com/-NZ6sGlCUijI/Wc-BAtgAALI/AAAAAAAAmY4/jAB2Gm1ySpkxztQzoMQnS8YgwGDJsY9wgCLcBGAs/s1600/A1.jpg"><img src="https://1.bp.blogspot.com/-NZ6sGlCUijI/Wc-BAtgAALI/AAAAAAAAmY4/jAB2Gm1ySpkxztQzoMQnS8YgwGDJsY9wgCLcBGAs/s640/A1.jpg" width="640" height="390" data-original-height="830" data-original-width="1362"></a></div>
</div>
<div>You didn't really need ABS estimates to tell you about the migratory shifts, since every second person in inner city Brisbane seems to have just relocated from Sydney, or from Perth in many cases. </div>
<div> </div>
<div>With the Sydney market now slowing, there will no doubt be a great surge in interest in Brisbane property - that's just the way the cycle goes. </div>
<div> </div>
<div>White shoes alert</div>
<div> </div>
<div>A few caveats, however, if you're thinking of buying a Brisbane property investment.</div>
<div> </div>
<div>Of all the capital cities, Brisbane plausibly has the patchiest housing market - some locations and dwelling types are experiencing strong price growth, while others are struggling big time.</div>
<div> </div>
<div>Be wary about locations prone to flooding, and definitely watch out for white ants (termites)! </div>
<div> </div>
<div>Oh, and real estate laws are different up north, so you need to understand how to make offers subject to certain conditions. </div>
<div> </div>
<div>Personally, I would buy established not new property, for way too many heads have been burned buying new of off the plan up north. </div>
<div> </div>
<div>Finally, there is a long history of southern buyers getting brazenly fleeced on Queensland property deals by slick sales techniques - the famed white shoe brigade - so make sure you don't become yet another casualty. </div>
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pwargent-M4siyDbqQY

Southerners need to avoid being fleeced by Queensland's famed white shoe brigade

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Two adjacent fully leased office buildings in Geelong, Victoria’s largest provincial city, are expected to sell at a below-replacement-cost figure of around $35 million.
The buildings could be sold separately as well, and currently return just over $3 million combined per annum. The properties will be sold by expressions of interest closing November 3.
The properties are being marketed by commercial real estate firm Dawkins Occhiuto’s Andrew Dawkins, Chris Jones and Walter Occhiuto, and Pat Burke of MP Burke Commercial.
Dawkins said the properties would present attractive yields for investors or partial owner-occupiers and presented far more attractive numbers than similar properties in Greater Melbourne, including the prospect of strong rental upside.
“With pre-commitment rents in Geelong at around $440 a sqm, there is a potential arbitrage opportunity for existing buildings that are achieving rents well below those rates,” Dawkins said.
“The momentum in the Geelong market coupled with these new rates being achieved presents a real opportunity for both these assets.’’ 
The property at <a href="https://www.domain.com.au/property-profile/235-237-ryrie-street-geelong-vic-3220" target="_blank">235 Ryrie Street</a> is a three-level building with advanced plans available for an additional two office levels featuring CBD and foreshore views. 
The property is fully leased to five tenants including Bendigo Bank, Clinical Lab and Victorian Regional Chanel Authority returning $748,076 per annum net.
The <a href="https://www.domain.com.au/property-profile/235-237-ryrie-street-geelong-vic-3220" target="_blank">237 Ryrie Street</a> asset is a modern (2008) building of five office levels, featuring a glass curtain facade and an atrium above the foyer. 
It is fully leased to eight tenants including Australian Red Cross, Bendigo Bank, Department of Human Services and Morris Finance, returning $2,345,525 per annum net.
Leased to 5 and 8 tenants
Burke added that increased government and private spending indicates a growing confidence in Geelong along with its record population growth.
“Geelong is currently in the midst of an investment and infrastructure boom with more than $1.3 billion of major construction underway or nearing completion and a further $2.3 billion worth of investment either awaiting commencement or in the planning stages. 
“The construction of the 14-level, $120 million WorkSafe headquarters in Malop Street epitomises Geelong’s relatively recent emergence as a key commercial centre including a number of national government tenants with the TAC, the ABS, NDIS and DHS.
The city of greater Geelong has a current population of more than 229,000 people, which is expected to grow to 320,791 by 2036.
 
 
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Geelong office duo expected to fetch $35 million

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Two office suites in Sydney CBD’s prized financial precinct have changed hands for a total of nearly $1.2 million in separate deals.
Both the suites at <a href="https://www.realcommercial.com.au/property-offices-nsw-sydney-502425230" target="_blank">84 Pitt Street</a> were sold via private treaty.
The building, once known as the Australian Business &amp; Conference Travel House, spans 15 storeys and includes almost 70 strata titled units.
The suite at the rear of Level 1 of 74 sqm sold for $705,000, while another 43 sqm suite on the southern side of Level 10 sold for $475,000.
The deals were negotiated by Ray White Commercial’s John Skufris and Will Mulvihill of Henderson &amp; Horning on behalf of private owners.
"Both suites sold via private treaty with purchasers planning to eventually owner occupy,” said John Skufris of Ray White.
Another 75 sqm office suite near Martin Place is on the market. The suite is located at Hengrove Hall, 193 Macquarie Street.
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Office suites in Sydney CBD strata building sell for $1.2 millon

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A shopping centre in the riverside city of Launceston in Tasmania has been sold through Savills for $38.55 million.
The off-market transaction for <a href="https://www.linkedin.com/company/2588298/" target="_blank">Mowbray Marketplace &amp; Target Centre</a> adds to Savills’ recent track record of more than $128 million worth of Tasmanian retail investment deals. 
The sub-regional shopping centre is anchored by Woolworths and Target, in addition to 16 other shops.
It has a total lettable area of more than 12,000 sqm.
The selling agent was Pat De Maria.
 
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Tasmanian shopping centre fetches $38.55 million: Savills

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Brisbane is at the 11th spot among global cities for the most office floor space that can be bought for US$100 million, fetching 14,607 sqm in the CBD area but this could change as the leasing market recovers and prices head north, says a new report by Knight Frank.
The report, Global Cities 2018, compares how much USD100 million will buy of prime office space in 34 top cities across the world. 
Melbourne and Sydney sit at 15th and 23rd on the list respectively, with Melbourne fetching 12,719 sqm of CBD office space for USD100 million while the same money can get you 7,087 sqm in Sydney.
Knight Frank’s managing director, Queensland, Ben McGrath said that investor interest has continued to build in the Brisbane CBD market due to the Sydney and Melbourne CBDs recording lower yields and a climate of fewer opportunities. 
Brisbane’s office leasing market is recovering, creating limited time to purchase office assets to fully benefit from the expected recovery in tenant demand, according to Knight Frank’s latest research.
“The certainty that the leasing market has bottomed in the Brisbane CBD is providing impetus to the investment market with the view that now is the time to purchase assets to fully benefit from the expected recovery in tenant demand,” said McGrath.
“Additionally, the demand from large tenants for new space will provide the opportunity to secure core investments with limited national supply of these assets.”
Investment demand is also rising because of continued high spread in yields Brisbane has with Sydney and Melbourne, added Knight Frank’s joint head of Institutional Sales, Australia, Ben Schubert.
According to the Global Cities report, Brisbane’s prime office yields sit at 28th in the world out of the 34 cities monitored, with yields at 6.38%, while Sydney and Melbourne are at 20th and 22nd respectively with Sydney yields at 5.06% and Melbourne yields at 5.25%. 
“While both Sydney and Melbourne CBDs are far further through the leasing demand cycle, with signs of improvement in the Brisbane market, investment interest has further increased. Yields remain under downward pressure with interest in the Brisbane market continuing to build. Both the yield gap to Sydney and Melbourne and positive signs in the Brisbane leasing market is underpinning this investment interest,” said Schubert.
Knight Frank’s head of Commercial Sales, Australia Paul Henley said, “Investors are increasingly expanding their global portfolios. Those cities going through an evolution driven by a compelling mix of education, lifestyle, infrastructure, technology and real estate makes them places where people want to work, shop, play, and live.”
Knight Frank’s director, Research, Australia Michelle Ciesielski said prime yields have continued to firm in the Brisbane CBD, having fallen to a median range of 5.8% to 6.95% as demand grows.
“In Sydney, the strong investor demand, particularly from offshore investors, is putting significant pressure on yields across the grades, but more so on secondary assets which have a lower price point,” she said.
She cited the sale of 20 Bridge Street on a sub-5% core market yield as an indicator that prime assets in the CBD core are expected to be traded between 4.5% and 5.25%. 
“This will be further affirmed when the sale of Wynyard Place is concluded, with market expectation for a yield of close to 4.7%,” said Ciesielski.
In Melbourne, fewer buying opportunities with strong investor demand, particularly by offshore investors, has further compressed prime yields, added Henley. 
“Looking ahead, investment volumes are anticipated to remain above the five-year average in 2017. This is unlikely to match volumes recorded in 2014 as impacted by the scarcity of investment opportunities rather than diminishing investor appetite,” concluded Henley.
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prateek24-ezbwHMbNAk

Brisbane CBD ranks 11th globally for value in prime office space: Knight Frank

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The Victorian government’s Department of Justice &amp; Regulation (DOJR) and Carlton Justice Service Centre are moving into Melbourne CBD’s 50 Franklin Street office building, the former headquarters of Qantas.
The government entities have committed to lease the entire office building in a move that will strategically position them closer to the heart of the city’s legal precinct.
While not giving out the exact leasing figure, Colliers International’s Edward Knowles, who negotiated the 10-year lease, said it was in the low-mid $500 gross per sqm range.
The new tenancy will see Carlton Justice Service Centre relocate from 444 Swanston Street.
The deal follows Colliers International’s sale of the building to listed Singapore-based property company, Lian Beng Group, late last year for more than $51 million.
Earlier this year, Lian Beng sold the historic Newspaper House on Collins Street for $35 million to Malaysian conglomerate Oriental Holdings Berhad.
About the recent government tenancy, Knowles said <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-502372342" target="_blank">50 Franklin Street</a> was vacated by call centre operator Salmat in February.
“To then re-lease the whole building in this timeframe attests to the current strength of the Melbourne office leasing market,” he said.
Knowles said the DOJR had committed to a long-term lease of the entire asset, which is approximately 11,500 sqm of net lettable area.
“The proximity to Melbourne’s legal precinct was another appealing factor,” he said.
“It is understood the new tenant will increase the base building’s NABERS energy rating from 1.5 stars to three-plus stars throughout the tenancy term.
 
 
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Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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