IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Joel Robinson

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

[smartcode_project:default project_id=114246 project_image_fid=378718]

Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

Abadeen unveils penthouse at Park Residences in Cremorne

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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Coffee retailer Workshop Brothers will open its second Melbourne CBD store, this one on Collins Street.
They have signed a seven-year lease for an 18sqm hole-in-the-wall at 410 Collins Street, is opposite the Mitre Tavern.
The space was previously used as  China Construction Bank’s storage facility.
Tan Thach from CBRE’s  negotiated at $60,000 per annum and said Workshop Brothers were looking for trendy locations to branch out from flagship stores and increase their brand presence.
“Switch Board Cafe occupies a switchboard cupboard in the Manchester Unity building, Saluministi has secured a former car park ticket office on Flinders Lane and Black Velvet Espresso is operating its business tucked on the side of the136 Exhibition Street foyer," he said.
"There were still many cafe operators looking for miniature spaces in the tightly held Melbourne CBD retail market that provide an attractive price point for tenants, yet offer a higher rate per square metre for landlords.
“Due to the low vacancy rate and high demand from retailers in recent years, landlords are being creative with their properties, transforming unexpected locations into useable retail spaces,” Mr Thach said.
Josh Rutman, CBRE’s director of city sales said with yields currently sitting at record lows, slight increases in income can have a wide-ranging impact on capital values. In this instance the increase could be over $1 million in value.
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j.ballantyne1990-6AQqhLzZaK

Coffee retailer Workshop Brothers signs Collins Street lease

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With its new head office in Sydney's Rhodes Corporate Park, Frasers Property Australia wanted to make a statement about its innovation and excellence, says a new video which Frasers portrays as a case study of its general approach to development.
The office was awarded 6 Star Green Star business park facilities, from the Green Building Council of Australia and is a good example of the future of workspaces.
In the <a href="https://www.youtube.com/watch?v=mI4b8-RrC5w" target="_blank">YouTube video</a>, Reini Otter, executive general manager at Frasers Property, says the vision was a workplace that reflected “not only the culture of our business, but also the aspirations of the business for the next decade”.
As Reini says in the video, “we are in a 15-year-old fit out, ad hoc design, lacking in many ways”.
The new building’s design revolves around a “central hub”, with meeting rooms dispersed around the office. Reini says “there’s no offices either”, so everybody is “open plan”. There are several standing workstations, a cafe area, and a lounge, which is mostly designed for informal meetings. Also, quiet spaces called “booth”, which offers more privacy for concentrated work.
Reini, who is an architect, says the building not only achieves a “technical outcome” of better IT infrastructure and office organisation, but it is also an “embodiment of the culture of the Frasers business”.
The office is designed to promote more collaboration among employees to encourage innovation, says Reini.
“So this project is a good case study in how we approach all our developments.”
The video says “it’s not just about providing a workspace that improves efficiencies, it’s about improving the health and wellbeing of people that work there”.
Frasers Property Australia was formerly Australand, which was acquired by Frasers Centrepoint Limited in late 2014. The parent group is listed in Singapore and focuses on Australia and China with total assets of more than S$23 billion.
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Frasers' new office a case study in its approach to development

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BRW Rich Lister Lloyd Williams has $120 million hopes for a property that includes one of Melbourne CBD's biggest car parks.
The 16-level property at 114 Flinders Street, at the city's east end, has five ground-level retail tenancies with 1200 car bays.
Topping the tower are six levels of office space, overlooking Flinders Street and the Yarra River, Fairfax Media note.
Agents from CBRE along with Knight Frank's Martin O'Sullivan and Paul Henley say the Hudson Conway-owned car park benefits enormously from servicing strong demand from commercial office users as well as being the core car park for weekend diners and visitors to the MCG, Melbourne Park and AAMI Park.
Around six months ago one of Singapore's largest property developers, Wing Tai, acquired a seven-level car park further along Flinders Street for more than $31 million on a tight investment yield of about 3 per cent, with the listed Singaporean group paying about $100,000 per bay.
Dexus Property Group has received planning approval for a $300 million high-rise apartment project on a car park it owns on Flinders Street.
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Lloyd Williams lists Flinders Street, Melbourne carpark

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Movements across all categories of commercial property are being keenly watched as investors look to seek traditional cash flow real estate to help fill out their portfolios, says valuation firm Herron Todd White in its March Month in Review which features the property clock as well.
The latest property clock deals with retail, which hinges on tenant success, and it’s been tough to get ahead for a number of operators in this space, say HTW.
Sydney, Melbourne and Brisbane have joined the Gold Coast, Coffs Harbour and Newcastle at approaching the peak of the market cycle in the retail property clock.
Townsville and Wide Bay remain rooted to the bottom of the cycle with Gladstone the new entrant, while Adelaide has joined Perth in approaching the bottom of the market. Canberra remains at the start of a recovery cycle, along with Cairns.
SYDNEY 
The retail market in Sydney has seen substantial growth over the past 12 months as a result of increased demand for good investment assets, growth in rental income and generally lower vacancy rates. 
The next 12 months look set to follow a similar trend, say HTW. Increased demand from investors will continue to drive the market. Properties with established retail tenants will be popular this year. 
Late in 2016 we saw some strong sales which showed tight capitalisation rates for assets with strong lease covenants, including some with sub 5% capitalisation rates in the Sydney CBD. 
The demand for CBD assets remains strong as the buzz around infrastructure improvements continues. Generally rents look likely to remain stable this year although an increase in prime locations was evident in 2016 with a strong probability of this continuing in 2017.
Recent media coverage of failing fashion retail chains may have some impact on demand from tenants but food and beverage outlets seem to be going strong in most locations, with demand for these types of retail properties likely to continue. Suburban retail assets with good lease covenants have also seen growth over the past 12 months. This is likely to continue as investors look for strong performing assets with future growth potential. 
Strip retail with a history of good retail trade such as King Street, Newtown; Darling Street, Balmain; and Crown Street, Surry Hills have all seen an increase in sales activity which looks set to continue in an upward trend in 2017. Looking ahead, the outlook for retail in Sydney overall remains positive for 2017.
"We expect prime locations to continue to perform well along with properties perceived to have growth or redevelopment opportunities in the future," say HTW.
"That said we are of the opinion that the market is reaching the peak of the cycle and any tightening of monetary policy or increase in the cost of debt will result in the prevailing investment yields not being sustainable. For the time being though, all signs are that 2017 will be a good year for retail assets."
Among a few examples of recent sales was a cafe at <a href="https://www.realcommercial.com.au/property-retail-nsw-sydney-501961950" target="_blank">1/252 Sussex St, Sydney 2000</a> which went under the hammer at Colliers International auction. 
<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/2017/03/22/CafeHTW.jpg" alt="">
Another was a three-level retail building at <a href="https://www.realcommercial.com.au/property-retail-nsw-haymarket-502254638" target="_blank">82-84 Dixon Street, Haymarket, NSW 2000</a> that was sold through Knight Frank.
<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/2017/03/22/Retail2HTW.jpg" alt=""> 
Melbourne 
Melbourne’s retail property market has continued its strong run over the past 12 months with supply generally limited and yields firming and reflecting pent up demand and rising prices. The steady low interest rate environment, strong Australian dollar and the ongoing perception of being a safe haven have all combined to drive strong interest from domestic and overseas retail property buyers. 
The Melbourne CBD retail property market continues to go from strength to strength. Despite approximately 50 new shops opening in the 12 months to January 2017, the vacancy rate is stable and below the five year average. 
Rents have remained stable and range from $1,500 per square metre for CBD shopping centre space to $11,000 for Bourke Street Mall frontage while yields range from 3.5 percent to 6.5 percent for CBD shopping space and 3.5 percent to 5.5 percent for the Bourke Street Mall. 
St Collins Lane, formerly Australia on Collins, at 260 Collins Street, which completed a $30 million upgrade in 2016, sold in November 2016 for $247 million on an initial yield of approximately 5 percent and a rate of $27,444 per square metre. The revitalised site offers over 9,000 square metres of retail space over four floors. With street frontage to Collins Street and Collins Lane in the heart of the Melbourne CBD, the centre comprises 60 specialty stores, including international brands such as The Kooples, Reiss, Sandro Paris, TAG Heuer and Coach plus restaurants. 
<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/2017/03/22/CollinsSt2HTW.jpg" alt="">  
The Melbourne CBD apartment construction boom and consequential growing population have been the driving force behind the strong market. With more retailers scheduled to open their doors in the Melbourne CBD, including British retailer Debenhams’ first foray into the Australian market, and more apartment completions, 2017 is shaping up to be another strong year for the retail property market in the Melbourne CBD. 
Within the suburban shopping centre market, owners may however be affected by store closures following the recent collapse of a number of retailers including Pumpkin Patch, Herringbone, Rhodes &amp; Beckett, Marcs, David Lawrence, Payless Shoes and Howards Storage World. 
Many commentators are forecasting more retail brands, particularly clothing retailers or fast fashion competitors, to fold in the face of increased competition from overseas retailers such as Uniqlo, H&amp;M, Zara and the forthcoming arrival of giants Amazon and Alibaba as well as a gradual yet inexorable move to online retailing. 
Store closures may affect suburban shopping centres in particular as it is precisely these shopping centres that the above named global players have pushed into. Local mid-market players are effectively squeezed out both in terms of retail price of clothing and also in costs with overseas players able to negotiate lower rents than their local counterparts.
While the closure of one or two stores may not have much of an immediate impact for shopping centre landlords, over the longer term shopping centre vacancies on a larger scale may combine to push sales growth and rental growth down, subsequently impacting income levels and values of shopping malls.
<h2>
Brisbane </h2>
The outlook for retail markets in Brisbane continues to be generally positive, albeit there is now an increasing perception that yields may finally have reached a low point. To put the story of recent years into perspective, we have seen retail yields generally move by between 150 and 200 basis points, which based on a starting yield of say 8%, translates to capital growth of upwards of 25 percent over a three year period. In some instances, capital growth has been upward of 35 percent. Sales activity has been moderate for the quarter. 
Major transactions include Arana Hills Kmart at $67 million, Everton Plaza at $27.5 million and Caboolture Square at $27.5 million. These showed yields of between 6 percent and 7.25 percent. 
In neighbourhood centres we have seen the first sub 6 percent yield achieved with a shopping centre at Tewantin selling at a yield of 5.9 percent. At the convenience end of the spectrum there has been less activity with only two centres selling under $10 million. Both of these were in the North Lakes region and showed yields of between 6.5% and 7 percent. 
Overall, the volume of sales activity has generally been low, primarily as a result of a shortage of stock and lack of other strong yielding investment options. With the perception however that yields will be bottoming out, we anticipate a rise in investment sales activity, particularly if interest rates start to rise and there is any suggestion of capital values starting to fall. Retail rentals continue to be reasonably restrained with ongoing difficult trading conditions in many sectors putting the brakes on rental growth.
The weakness is evident across the board as high levels of competition, flat wages, internet retailing and changing consumer shopping patterns all contribute to a very tough retail environment. Good buying opportunities in the market are limited at present as all reasonable assets are heavily scrutinised by a wide number of investors. There is potentially some more opportunity to value add with secondary centres but even these are holding their value fairly well making owners reluctant to sell.
Below are two examples from North Lakes cited by HTW.
<a href="https://www.propertyobserver.com.au/images/2017/03/22/BrisbaneNorthLakes.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/22/BrisbaneNorthLakes.png" alt="">
 
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jonathanchancellor-7SQnKwU6yx

Retail property market outlook positive: HTW

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SPONSORED POST
Melbourne is the top ranked ‘tech city’ in Australia and 14th in the world offering the infrastructure, business environment, talent pool and lifestyle to make it a strong base for tech companies, according to new Savills research. 
And according to Victoria’s Minister for Small Business, Innovation and Trade, Philip Dalidakis, that is no surprise given the Government’s policy of taking “brand Victoria to the world”.
While US cities dominated the top of the Tech Cities rankings – Austin (Texas) came in at number one followed by San Francisco, New York, and London, according to the <a href="https://www.savills.co.uk/tech-cities" target="_blank">Tech Cities 2017</a> programme - the liveability of cities including Melbourne, Amsterdam, Copenhagen and Toronto, placed them above more established global tech rivals.
Savills National Head of Research in Australia, Tony Crabb, said the elevation of ‘liveable’ cities in the rankings centred on their strong performance in terms of ‘buzz and wellness’, factors that were likely to prove increasingly important to the tech industry in decisions on where to locate and on attracting future talent. Melbourne was ranked 8th on this index.
“Everybody here knows Melbourne’s reputation as the world’s most liveable city, a title it has taken for six consecutive years, and so it is not surprising to see how well Melbourne ranked on this metric. 
“That single factor may well prove, more than any other, the most critical factor in further establishing and maintaining Melbourne‘s pre-eminence in what is increasingly one of the most important employment and growth industries in the country,” Mr Crabb said.
The UK report quantified ‘buzz’ (nightlife, entertainment, culture) and ‘wellness’ (pollution levels, quality of parks, healthcare, commuting times) and the cost of living in each location to create a specific ‘city buzz and wellness index’. 
It noted that given the increased focus on physical and mental wellbeing among the latest generation of workers, it could come to dominate their decision-making.
According to Nicky Wightman, Director Savills Worldwide Occupier Services, providing an environment which enables tech companies and start-ups to plug straight into the infrastructure and funding they need to be a success is an important part of any tech city.
“However this alone won’t necessarily make them attractive destinations. Young tech talent increasingly want to live in dynamic, healthy neighbourhoods within walking or cycling distance of the office.
“Cities that deliver those environments are therefore likely to consolidate their positions as destinations for tech talent and occupiers who want to attract the best staff,” Ms Wightman said.
The report’s release follows the Victorian Government’s recent announcement that Texas-based software firm, AgileCraft, would open its Asia-Pacific headquarters in Melbourne.
Mr Dalidakis said AgileCraft was yet another example of a leading global tech company choosing Victoria as an entry point for the Asia-Pacific market.
“Over the past two years we have taken brand Victoria to the world, attracting more and more leading global companies to invest in the state’s booming tech sector,” Mr Dalidakis said.
AgileCraft Chief Executive Officer Steve Elliott said Melbourne’s emerging tech sector and close proximity to Asia made it a perfect location to set up its regional headquarters and expand throughout the Asia Pacific region.
“We consider ourselves to be an innovative company at AgileCraft and the Victorian Government made it clear to us that it is trying to attract innovative businesses to the state, so we look forward to being a part of the Victorian technology ecosystem,” Mr Elliot said.
Savills Tech Cities 2017 Buzz and Wellness Index 
<a href="https://www.propertyobserver.com.au/images/2017/03/22/Tech%20Cities%20-%20Overall%20Rankings.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/03/22/Tech%20Cities%20-%20Overall%20Rankings.png" alt="">
Savills Tech Cities 2017 overall rankings
<a href="https://www.propertyobserver.com.au/images/2017/03/22/Tech%20Cities%20-%20Buzz%20and%20Wellness%20Index.jpg" target="_blank">Click to enlarge</a>
<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/2017/03/22/Tech%20Cities%20-%20Buzz%20and%20Wellness%20Index.jpg" alt="">  
About Savills Tech Cities
<a href="https://www.savills.co.uk/tech-cities" target="_blank">Savills Tech Cities</a> 2017 programme aims to understand the diverse factors that make places a good location choice for the tech sector; examining 22 global centres which have thriving and growing tech industries, home grown start-ups and incubators, and are at the top of global shopping lists for tech companies looking for space in which to locate. <a href="https://www.savills.co.uk/tech-cities/index" target="_blank">Explore the globe</a>.
 
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jchancellor-FAypfDUnLy

Savills research finds Melbourne top ‘tech city’ in Australia   

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From hip lobbies with a coffee shop ambiance to shared living spaces linking guest rooms, more hotels are turning their focus to providing inviting community areas.
For corporate travellers, it may mean sending a few emails from a co-working alcove complete with power and USB outlets, while leisure visitors may linger around tables stacked with board games or post photos to social media from the lounging zones.
“Today’s travelers often place greater value on convenience, sense of place and community than they do on the traditional luxuries offered by hotels,” says David A. Black, Americas Hotels Lead, JLL Project and Development Services. “That’s one reason why hotel companies are developing so many soft brands that have an emphasis on communal areas with spaces and experiences that bring people together in new ways.” 
The forthcoming Tru by Hilton is just one of the growing number of hotel brands encouraging its guests to spend less time in their rooms and more in specially designed communal areas. Aimed at Millennials — or people with a “Millennial mindset” — who want to connect with other travelers, the hotel’s innovative space called “The Hive” embodies the brand. Instead of a traditional lobby, guests have access to four zones — work, play, lounge, and eat — all designed for interaction and engagement.
Moxy Hotels, Marriott’s new boutique hotel brand, offers an industrial-style lobby with fun games on hand, along with coffee and full-service bars. And while not everyone will fancy the hotel’s signature feature, a communal ironing nook, Moxy Hotels is banking on Millennials appreciating its fresh approach.
“Some of this communal space is nothing new,” says Lauro Ferroni, JLL’s Global Head of Hotels &amp; Hospitality Research. “Hotels have always had lobbies, pools, bars and restaurants. But now the design and features of these communal spaces are being driven by hotels wanting to appeal to younger travelers.”
Going beyond the idea of a pool and sun-loungers as an outdoor communal space, one New Jersey hotel, The Asbury, has created a perennial backyard barbecue zone with Ping-Pong tables, live music, craft beer (served from a converted VW van), and food trucks.
<h2>Getting travelers together</h2>
The growing popularity of home rental platforms, such as Airbnb and HomeAway, and boutique hostels is also driving hotels to find new ways to accommodate larger groups of friends and families traveling together.
Marriott’s mid-range brand Element, which is aimed at guests staying beyond a few nights, is testing blocks of private rooms built around a communal kitchen and living room. “Really it’s about a much more shared economy these days. It’s much more about socializing and a sense of community when you travel,” says Toni Stoeckl, a Global Brand Leader at Marriott, in an interview with KTLA earlier this year.
The challenge for hotels is designing their communal areas in a way that appeals to their target guests – and provides them the requisite amount of privacy.
“Although there has been a growing focus on the Millennial traveler, hotel brands can’t afford to ignore their more “seasoned” travelers,” says Black. “That’s why design solutions must be flexible enough to provide both communal spaces which appeal to the co-working, co-living generation as well as spaces which appeal to baby boomers.  It’s not a one size fits all approach.”
In addition, people traveling in a group have different needs and expectations to those traveling in a couple.
“When you’re traveling, the communal experiences could turn out to be the most memorable part of the trip,” says Ferroni. “Yet you’re also going to have a lot of people who will say right off the bat that they have no interest in trying something like this, whether they’re business travelers who need their own space to get the job done or leisure travelers who want some time on their own.”
<h2>Is communal the way forward?</h2>
With the concepts of co-living and co-working taking off, bigger and more innovative social areas in hotels could well be in the cards – especially for brands targeting younger segments of the market.
Within the U.S., Ferroni believes it’s a concept that will take root in the bigger cities.
“I think it’s going to gain traction in large gateway markets like New York, Miami, or San Francisco where you have a large share of people coming from Europe who might be more comfortable with this concept,” he says.
Hotel executives might not be sure whether this is the next big thing, speculates Ferroni, but he says that it would be foolish for them not to give it a try. “They’re looking at it from a trial-and-error standpoint. Large hotel companies that want to be innovative can’t afford to ignore the potential of shared spaces – even if Millennials are not their key audience.”
This article by Laura Agadoni was featured in <a href="https://www.jllrealviews.com/industries/hotels-take-a-fresh-look-at-communal-spaces/" target="_blank">JLL Real Views</a>.
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Hotels take a fresh look at communal spaces

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A lack of stock and urgency by private investors to source quality investments has resulted in strong results for strata office sales in the heart of Parramatta, the epicentre of Western Sydney.
Ray White Commercial noted the demand for office strata was highlighted by the $650,000 sale at auction of a 63 sqm ground floor office investment at 3/4 Charles Street, Parramatta. It was sold by Ray White Commercial NSW-Parramatta’s Joseph Assaf for a sharp 3.62 percent yield.
Mr Assaf said smaller private investors have been particularly active in the strata office market, resulting in capital values averaging $4,520 per sqm, which is affordable in comparison to the highs achieved in the Sydney CBD of $7,614 per sqm.
“However, a lack of stock and urgency to source quality investments has resulted in results such as the sale of 3/4 Charles St,” he said.
“The yield was 3.62 per cent while the capital value was $10,317 per sqm.”
Ray White Commercial NSW Director Michael Ajaka said the robust performance of the Parramatta CBD office market over the last five years has been observed by many larger institutions and both domestic and international private investors who have been instrumental in reducing investment yields.
“Currently prime investment properties have averaged yields from 5.75 percent to 6.5 percent range,” he said.
“Recent sales include 80 George St, a B grade office building which sold for $51.88 million in October, 2016, to a private Asian investor on a yield of 8.50 percent, while A grade Century Centre at 18 Smith St changed hands in September, 2016, for $84.03 million, representing a yield of 6.88 percent.”
Ray White Commercial Head of Research, Vanessa Rader, said the Parramatta CBD office market has been yielding strong results over the last few years.
“There is still more than 200,000 sqm of office stock destined to be added in the Parramatta CBD during a time of steady employment demand which is putting pressure on vacancy rates and improving rents achieved,” she said.
“New developments in office and continued residential development coupled with changes to infrastructure means Parramatta will remain a construction zone with road closures and cranes on the skyline for the next few years.”
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Parramatta CBD office investment yields sharpen

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Sydney has emerged as the destination of choice for commercial property investors in the APAC region, as US$1.7 trillion capital waiting to be deployed in real estate globally this year, according to a new survey by CBRE.
Stronger economic growth, the availability of debt capital, and a more positive outlook from investors is expected to drive global capital flows in 2017, says CBRE Global Investor Intentions Survey 2017.
The survey reveals that investors have ample capital and a strong motivation to invest in real estate because of its relatively high income yield. North America is the preferred region for investors, with London, Los Angeles and Sydney the most popular cities in each of the major regions. Office is the most popular asset sector, with logistics up strongly in 2017 and a very close second.
The sum total of planned capital expenditure in real estate by investors is $1.7 trillion, it says. A majority of investors indicate that their buying activity will increase or remain the same compared to 2016. Those investors planning to spend more (40 percent) outweigh those planning to spend less (16 percent) by a margin, indicating a continuing positive attitude to real estate as an asset class.
There were nearly 2,000 respondents globally who participated in the survey, with investor types spread across fund/asset managers, insurers, pension and sovereign wealth funds, in addition to private investors such as real estate companies and developers.
Despite a volatile global political environment and key European elections set to take place in France and Germany, investors are relatively unconcerned about global or local politics. Investors’ main concerns are: an undefined ‘global economic shock’ (22 percent) and ‘faster than expected rises in interest rates’ (21 percent). The latter concern is felt much more strongly this year and is the biggest change from 2016.
“This time last year, investors were reeling from the volatility in world stock markets, now they are seeing equities reach record highs and economic sentiment is positive. Although there is uncertainty about the direction that economic policy will take, there is also a growing anticipation that changes will unlock growth,” said Chris Ludeman, global president, Capital Markets, CBRE.
“While there are some clouds on the horizon–emerging market debt looks problematic as does Greece’s financial situation–economic momentum, alongside the yield advantages of property as an asset class, should ensure another year of substantial capital flows into global real estate.” 
In last year’s survey, investors favoured core assets over secondary and value-added risk classes. That trend has partially reversed in 2017 with a fall in demand for core assets and an increased interest in core-plus and opportunistic assets. Nearly half of investors (48%) cite the high price of real estate as the main obstacle to deploying capital. This increased interest in core-plus and opportunistic reflects that issue, but it also shows that investors are slightly more ‘risk on’ than they were last year.
In the Americas, Los Angeles is the stand-out preference for investors. Dallas/Fort Worth has moved into second place. Washington, D.C. is the biggest mover, entering the top six at fourth position, having not featured last year. Atlanta moves up one place and Seattle is in sixth position, having not made the top tier last year.
Within EMEA, London remains the most attractive city for investors. Berlin has moved up two places to become the second most preferred destination. While there is some concern about European elections, so far this does not seem to have dampened appetite for real estate. The survey shows that, despite the uncertainty over Brexit, investors are increasingly interested in the UK.
In APAC, Sydney is once again the top destination, with Tokyo second by some distance. Australia’s cities remain highly popular with APAC investors because of their liquidity, transparency and positive long-term prospects. Seoul has dropped out of the top six and Hong Kong has moved in.
Office is the preferred sector for investors (26 percent), with multifamily (21 percent) and logistics (22 percent) also highly popular. The preference for retail has dropped sharply from last year (21percent to 12 percent). Americas-based investors have a strong preference for logistics and multifamily; two sectors that have performed extremely well this cycle due to changes in technology and demographics. EMEA and APAC investors have relatively more interest in the offices and retail sectors.
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Sydney, London and LA among top targets for commercial property investors: CBRE

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Among the capital cities, Melbourne posted the largest through-the-year growth at 10.8 percent, with Sydney close behind at 10.3 percent.
House prices in both cities experienced strong growth in the December quarter, with house prices climbing 6.1 percent in Sydney and 6 percent in Melbourne. 
The mean price of dwellings in Australia is $656,800.
The numbers immediately added fuel to the housing affordability debate.
Research by Ben Phillips, an associate professor of economics and public policy at the Australian National University, showed that while Sydney house prices have jumped 70 percent in the last five years, the average income growth has increased just 13 percent. His analysis was carried in the Huffington Post.
"This result comes at the same time that Australia is in a home construction super cycle, building more homes than ever before. The house price growth is largely related to investor activity in Sydney and Melbourne,” Phillips was cited as saying by the Huffington Post.
“Low interest rates and tax incentives such as negative gearing and capital gains tax discounts are likely adding extra fuel to price growth."
Treasurer Scott Morrison had earlier said there would be a housing affordability package in the May budget and NSW Premier Gladys Berejiklian has already said one of her main goals is housing affordability. 
The mean price of residential dwellings in NSW ($864,900) remains the highest in the country followed by Victoria ($690,100). 
<a href="https://www.propertyobserver.com.au/images/2017/03/21/ABSPropertyPrices.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/21/ABSPropertyPrices.png" alt="">
Perth continued to show weakness, with prices of attached dwellings falling 1.7 percent, followed by Brisbane (1.3 percent) and Darwin (2.5 percent), while prices rose in all other capital cities. The ABS defines attached dwellings that includes flats, units and apartments plus semi-detached, row and terrace houses.
The total value of Australia's 9.8 million residential dwellings increased $274.2 billion to $6.4 trillion. The mean price of dwellings in Australia is now $656,800.
<a href="https://www.propertyobserver.com.au/images/2017/03/21/ABSchart.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/21/ABSchart.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/03/21/ABSHousingValue.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/21/ABSHousingValue.png" alt=""> 
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National property prices up 4.1 percent in the December quarter 2016: ABS

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Townsville had a buoyant market in the final quarter of 2016 with the median house price growing an impressive 4.6 percent to $345,000, according to REIQ's latest report.
The area is set to benefit from considerable infrastructure and government spending programs, including the $250 million football stadium.
It will also benefit from the planning for the $1.6 billion Port of Townsville project, which will help employment figures and stabilise business confidence.
The unit market held steady this quarter at $260,000 and while there was zero growth this quarter there was also zero contraction.
Unfortunately, the market has contracted 4.3 percent over the year and compared with five years ago, has contracted 16.2 percent.    
A four bedroom house at <a href="https://www.realestate.com.au/property-house-qld-annandale-124759510" target="_blank">15 Banyan Court</a>, Annandale (above) has been listed for $395,000.
It last sold on February 2013 for $360,000.
Similarly a four bedroom house at <a href="https://www.realestate.com.au/property-house-qld-south+townsville-119709151" target="_blank">45 Allen Street</a>, South Townsville (below) has been listed for $329,000.
It last sold on August 2013 for $320,000.
<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/2017/03/16/45%20Allen%20Street.jpg" alt="">
A four bedroom house at <a href="https://www.realestate.com.au/property-duplex+semi+detached-qld-kirwan-124759502" target="_blank">14 Hasson Street</a>, Kirwan (below) has been listed for $375,000.
It last sold on October 2006 for $330,000.
<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/2017/03/22/14%20Hasson%20Street.jpg" alt="">
A three bedroom house at <a href="https://www.realestate.com.au/property-house-qld-gulliver-124891462" target="_blank">19 Harvey Street</a>, Gulliver (below) has been listed for $325,000.
It last sold on November 2016 for $180,000.
<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/2017/03/22/19%20Harvey%20Street.jpg" alt="">
A four bedroom house at <a href="https://www.realestate.com.au/property-house-qld-mount+louisa-125021966" target="_blank">24 Gadsden Loop</a>, Mount Louisa (below) has been listed for $354,000.
It last sold on February 2013 for $419,750.
<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/2017/03/22/24%20Gadsden%20Loop.jpg" alt="">
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