A new 25-storey apartment tower proposed for Mercer Street would push Geelong’s western gateway skyline higher, with Morphy Birrell Property Group lodging plans for a project directly beside one of the city’s most significant heritage streetscapes.

The <a href="https://www.apartments.com.au/architects/fk-australia">FK</a>-designed development at <a href="https://www.apartments.com.au/new-apartments/65-67-mercer-street-geelong-vic-3220">65-67 Mercer Street</a> has now been referred to Victoria’s Planning Minister. The site sits opposite the Geelong rail corridor and immediately south of the heritage-listed St Peter and Paul’s Catholic Church and Ashby Hall precinct.

Rather than compete with the neighbouring ecclesiastical buildings, the proposal adopts a sculpted podium intended to reference the materiality and scale of the heritage context. Planning documents note the design draws cues from the “dark stone brick” church and surrounding masonry buildings, while the tower above transitions into a softer, curved form oriented toward Corio Bay and the Geelong waterfront.

<img alt="First look: Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct" data-entity-type="file" data-entity-uuid="b797d10c-d4a6-47af-b8df-1aeaa3b382be" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/public%20square.png?VersionId=QGIpcz1x1hKB6lQLl2iobyHqb6PS2Ztc" />

The development forms “Stage 5” of Morphy Birrell Property Group’s broader Mercer Street precinct strategy, following the completion of the 21-storey Miramar tower on Cavendish Street and several additional approved redevelopment stages nearby. Planning consultants Ratio said the proposal “represents an exemplary development outcome” aligned with the strategic ambitions for Central Geelong’s continued urban renewal.

The mixed-use project would replace an existing low-rise commercial building and surface parking area on the 3,320 sqm corner site. FK’s urban context report describes the proposal as a residential development comprising apartments, resident amenities, commercial space, and integrated landscaping positioned to maximise bay views and northern sunlight access.

Renders show a deeply articulated tower with curved balconies stepping above a lower masonry podium that frames a landscaped forecourt facing Mercer Street. The design intentionally preserves sightlines toward the adjacent church buildings, with the podium scaled to reinforce the heritage edge before the tower recedes upward.

<img alt="First look: Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct" data-entity-type="file" data-entity-uuid="2bdca91e-66f7-4ac7-8baa-2f93bd5b564e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/geelong%20site.png?VersionId=QOhbino4ZgzKYw5dW3QE14E.2yq.Sv87" />

The planning report highlights the site’s strategic location within 400 metres of key Geelong destinations including Cunningham Pier, the Geelong Station precinct, Deakin University, and the convention centre. Bus services run directly along Mercer Street, while the Corio Bay foreshore sits around 100 metres north of the site.

The proposal arrives amid accelerating redevelopment across central Geelong, where planning policy continues to encourage higher-density housing close to transport infrastructure and the waterfront. Mercer Street in particular has emerged as a focal point for taller apartment development due to its proximity to Geelong Station, the bay, and major civic infrastructure.

Joel Robinson

Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct

Development giant&nbsp;<a href="https://www.apartments.com.au/developers/hamton">Hamton</a> and joint venture partner Hostplus have revealed the next residential stage of their $3 billion Moonee Valley Park masterplan, lodging plans for 512 more apartments within the precinct on surplus racecourse land at 110 Wilson Street, Moonee Ponds.

The proposed development, dubbed&nbsp;<a href="https://www.apartments.com.au/new-apartments/trackside-house-110-wilson-street-moonee-ponds-vic-3039">Trackside Gardens</a>&nbsp;in the planning application, follows the <a href="https://www.apartments.com.au/news/vic/first-look-exclusive-hamton-and-hostplus-reveal-sixth-stage-of-moonee-valley-park-masterplan">recent unveiling of the sixth-stage Cox Place Precinct</a> and continues the long-running transformation of the Moonee Valley Racecourse into one of Melbourne’s largest urban renewal projects.

Positioned on the north-eastern edge of the racecourse adjacent to CityLink, Trackside Gardens will comprise three residential buildings rising between 61.8 metres and 86.4 metres within a heavily landscaped precinct shaped by Hamton’s Nature Based Cities framework.

The project forms part of the broader Moonee Valley Park redevelopment being delivered by Hamton, Hostplus and the Moonee Valley Racing Club, which is reshaping the 40-hectare racecourse site into a mixed-use neighbourhood with housing, retail, commercial space, hotels, parkland and community infrastructure.

Trackside Gardens sits separately to the recently proposed Cox Place Precinct, a five-building stage comprising around 1,100 residences, two build-to-rent buildings, two build-to-sell towers, retail, office space, and a hotel overlooking the racetrack. Together, the projects continue to accelerate housing delivery across the precinct.

<img alt="First look: Hamton expands Moonee Valley Park masterplan with 512-home Trackside Gardens precinct" data-entity-type="file" data-entity-uuid="5fc1941e-52d3-41c6-abc4-0f13fe8ae5ea" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/DA%20Edits%20%281%29.png?VersionId=7qwRHq5dcvXWNot2hNOgoQhN2GIWudNK" />

Designed by <a href="https://www.apartments.com.au/architects/dko-architecture">DKO Architecture</a> with landscape architecture by Tract, Trackside Gardens has been conceived as a botanical-style residential precinct prioritising canopy planting, communal green space, and vertical landscaping.

“The architectural vision for the proposed development centres around buildings in a botanical park setting that champions the important role of nature,” the planning submission states.

“The proposal incorporates principles of biophilic design, with landscape and environmentally sustainable development influencing the ultimate design response of the buildings and prioritising the ground plane to ensure a high amenity for both occupants and visitors.”&nbsp;

Trackside Gardens will deliver 512 apartments across the three buildings, alongside 518 basement car spaces and 523 bicycle spaces. Around 20 per cent affordable housing is proposed across the broader North East Precinct, equating to around 158 dwellings.&nbsp;

The affordable housing component will be concentrated within the Wilson East building, while the remaining apartments are expected to be delivered as build-to-sell residences.

Trackside Gardens has been designed around Hamton’s Nature Based Cities initiative, founded by Executive Chair Paul Hameister OAM in partnership with the University of Melbourne, Urbis, Ark Resources and Tract. The initiative promotes integrating higher-density urban development with significant biodiversity, tree canopy and landscape outcomes.

<img alt="First look: Hamton expands Moonee Valley Park masterplan with 512-home Trackside Gardens precinct" data-entity-type="file" data-entity-uuid="89353449-7b3c-42fd-8fd8-8bf64a5ef80f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_4.png?VersionId=X8jRt0P2L7fIWjLhfX6gPknXToXIBeLj" />

A comprehensive landscape strategy would introduce deep soil planting, vertical greening, communal gardens, and new pedestrian links throughout the site.

Planning documents state the development is targeting a 5 Star Green Star Buildings rating, a 7.5-star average NatHERS rating, and “Exemplary” Nature Based Cities certification.&nbsp;

The proposal joins an expanding pipeline of approved and proposed buildings within Moonee Valley Park, including the recently launched Eveline apartments and the approved Grandstand North and South towers.

Hamton has increasingly focused on precinct-scale, nature-led communities across Melbourne’s middle-ring suburbs, with projects spanning Hawthorn, Kew, and Moonee Ponds.

Hampton unveils Trackside Gardens, latest stage of $3 billion Moonee Valley Park masterplan

The Paul Gedoun-led <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Group</a> has achieved another milestone in its $1 billion transformation of Rainbow Bay on the southern Gold Coast with the completion of the company’s third project in four years, the $160 million <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a> residences.

Delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a> and designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker Architects</a>, Esprit buyers have now moved into the 94 apartments across two interconnected buildings at 217-227 Boundary Street.

The successful settlement of Esprit marks another astounding chapter in the S&amp;S story, which launched its highly successful Flow apartments three years ago and created its own ultra-luxury branded fingerprint on an area craving new luxury residences.

Most early purchasers have secured gains of well over $1 million since the project launched in 2021.&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172129]

S&amp;S Projects Founding Director Paul Gedoun said the completion of Esprit reflects sustained demand for premium apartments in tightly held coastal locations.&nbsp; 
&nbsp;&nbsp; &nbsp; 
“Esprit has attracted buyers seeking a combination of quality design, considered amenity and a location that is becoming increasingly difficult to replicate,” said Gedoun.

“We identified some years ago that Rainbow Bay is a unique market where supply of luxury residences is limited, and we see the settlements in Esprit further underpinning this thinking - that for both owner-occupiers and investors.”&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172174]

A key feature of the development is ‘Club Esprit’, a 1,000sqm residents-only rooftop level combining wellness and recreation, believed to be a first for the Gold Coast, and which is fast becoming a signature of the S&amp;S brand.

Positioned to capture views across Snapper Rocks, Rainbow Bay and the Tweed River, the rooftop includes a 25-metre lap pool, gym, yoga lawn, sauna and steam facilities, ice bath, private dining spaces, outdoor cinema and landscaped areas for residents.&nbsp;

<a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> Director Jayde Pezet, who led the sales campaign for Esprit and S&amp;S’s Flow and Awaken apartments, said the project’s performance reflects both the strength of the product and the depth of demand for premium apartments on the southern Gold Coast.&nbsp;

“In some cases, we’ve seen values double since launch, which is a clear reflection of how tightly held Rainbow Bay has become and the level of demand for well-executed projects in this market,” said Pezet.&nbsp;

“Buyers recognised early what S&amp;S Projects was delivering here, and that conviction has been rewarded as the project has progressed towards completion.”&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=214819]

Esprit offers a mix of two- three and four-bedroom apartments and sits within walking distance of the beachfront, cafés and local amenities, reinforcing its appeal as both a lifestyle and investment destination.

The project is the third completed by S&amp;S Projects in Rainbow Bay, following Flow Residences and Awaken Residences, which together have contributed to the suburb’s emergence as one of the Gold Coast’s most sought-after coastal pockets. &nbsp;

S&amp;S Projects is continuing its investment in the area with Radia, a $215 million development currently under construction.&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172175]

Gedoun said the completion of Esprit signals continued confidence in the southern Gold Coast market.&nbsp;

“We’ve seen strong interest in well-located, high-quality apartments, particularly in areas where future development opportunities are limited."

“That’s been a key factor in the performance of Esprit and the broader Rainbow Bay market”.

[smartcode_project_cta:default project_id=102921]

Owners move in as Esprit completes at Rainbow Bay

Few developers can boast a portfolio across South East Queensland's luxury markets quite like <a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic Property Group</a>.

The builder-developer, founded in 2004 by Managing Director Brook Monahan, has projects in planning, on the market, and under construction, from Burleigh Heads and Broadbeach to Kangaroo Point and South Brisbane.

With a pipeline exceeding $2 billion, Mosaic remains highly selective when it comes to development sites, having spent years refining its strategy around feasibility research and product planning. The group is set to continue growing into 2026 and beyond.

In Brisbane, Mosaic currently has three projects in the market. It is in the final release stage at <a href="https://www.apartments.com.au/new-apartments/the-bedford-by-mosaic-16-30-prospect-street-kangaroo-point-qld-4169">The Bedford</a> in Kangaroo Point, which is approaching complete sellout ahead of its late 2027 completion.

[smartcode_project:default project_id=134792 project_image_fid=328123]

Designed in collaboration with <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, The Bedford comprises 128 two- and three-bedroom residences. A selection of ultra-luxury Masterpiece Series Skyhomes, positioned across the top levels, offer expansive floor plans and sweeping views of the river and city.

High-end inclusions, such as natural stone benchtops, bespoke cabinetry, and Miele appliances, feature throughout all apartments, alongside the Rooftop Recreation &amp; Retreat Sky Terrace. This includes a resort-style pool with sun deck and loungers, spa, cold plunge pool, sauna, steam room, private dining room with a full kitchen, residents' lounge, multiple barbeque and relaxation zones, an outdoor viewing deck, and landscaped gardens with water features, all oriented to sweeping city and river views.

A gym with indoor and outdoor zones, and a golf simulator, further enhances recreational choice within the building.

[smartcode_project:default project_id=134792 project_image_fid=328119]

A defining feature of the development is its integrated mixed-use component, which will deliver Kangaroo Point's first major supermarket, alongside a café and liquor store, bringing long-awaited convenience to the peninsula.

Monahan says The Bedford represents the culmination of a near-decade-long journey, after first identifying the A-grade Prospect Street site in 2016. While they came close to acquiring it at the time, the site was ultimately purchased by Woolworths' development arm, Fabcot. The opportunity resurfaced in 2024 when the site, vacant for nearly three decades, was brought back to market.

Monahan says Mosaic projects often begin years before any formal plans are drawn. Their new South Brisbane development is no exception, with the site first earmarked in 2018.

"We aren't opportunistic," Monahan says. "Every site purchase is carefully considered. As seen with Kangaroo Point and South Brisbane, it can take years to eventuate. There are sites we're looking at now that we may not secure for several years."

[smartcode_project:default project_id=141711 project_image_fid=353495]

A similar story unfolded at <a href="https://www.apartments.com.au/new-apartments/the-carter-by-mosaic-77-linton-street-kangaroo-point-qld-4169">The Carter</a> in Kangaroo Point, opposite The Gabba. Like The Bedford, it is also approaching sellout of its 125 two- and three-bedroom apartments. The majority of sales are attributed to returning customers and referrals, with a balanced mix of investors and a strong majority of owner-occupiers.

BDA Architecture was again engaged to design the 22-storey building, which will feature a suite of wellness and lifestyle amenities, including a golf simulator and cinema, a commercial-grade gym, and a rooftop recreation level with a pool, steam room, sauna, cold plunge, teppanyaki bar, private dining spaces, and landscaped terraces.

Construction is on track for completion in mid-2027.

[smartcode_project:default project_id=151614 project_image_fid=362759]

Mosaic's latest offering is its most ambitious yet, boasting a rare, north-facing riverfront position on Montague Road in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/the-riversdale-by-mosaic-south-brisbane-91-montague-road-south-brisbane-qld-4101">The Riversdale by Mosaic</a> is a 39-storey tower comprising just over 200 residences and Masterpiece Series Sky Homes. Designed in partnership with Bureau Proberts, it will feature nearly 3,000 sqm of genuine, internationally benchmarked six-star, hotel-style amenities, including a wellness precinct, pool, gym, massage and treatment rooms, cinema, golf simulator, and extensive outdoor dining areas across a two-level rooftop deck.

Early works are underway, with full construction expected to commence in the second half of 2026, and an anticipated late 2029 completion.

[smartcode_project:default project_id=151614 project_image_fid=362759]

Since 2012 alone, Mosaic has completed more than $2 billion in projects and is set to deliver another $2 billion worth of developments, comprising hundreds of luxury apartments, each defined by Mosaic's signature standards of quality, detail, and delivery.

"We never arrive, there is no finish line," says Monahan. "Our ambition is to keep evolving what luxury means, creating design- and lifestyle-led residences in incredible locations, places people genuinely aspire to and want to live, homes that are loved deeply and endure long beyond their moment."

Mosaic's Midas Touch

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> (Urban) has broken ground at Keira Place, its new major mixed-use residential precinct in the heart of Wollongong CBD.

Held at 120-122 Smith Street, the groundbreaking marked the commencement of construction on Stage 1 of <a href="https://www.apartments.com.au/new-apartments/keira-place-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, with the opening of the new display suite. 
&nbsp; 
Keira Place is a State Significant Development that will deliver new housing supply, affordable homes and inclusive living options within walking distance of Wollongong’s CBD, coastline, transport, hospital and education precincts.

[smartcode_project:default project_id=144442 project_image_fid=369868] 
&nbsp; 
Stage 1 is now under construction and will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, along with activated ground-floor retail and commercial space. 
&nbsp; 
Urban Co-CEO Patrick Elias said the groundbreaking represented a significant milestone for Wollongong and reflected Urban’s long-term commitment to regional cities.

“Today’s groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong’s city centre,” Elias said. 
&nbsp; 
“Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection.”

[smartcode_project:default project_id=144442 project_image_fid=369869] 
&nbsp; 
Hon. Paul Scully MP, Minister for Planning and Public Spaces, Member for Wollongong said Keira Place is exactly the kind of development Wollongong needs – delivering new homes close to transport, employment and services, while supporting the continued growth and renewal of the CBD.

"This project reflects the Minns Labor Government's commitment to increasing housing supply in well-located areas." 
&nbsp; 
Wollongong Lord Mayor Cr Tania Brown said Keira Place would deliver lasting community benefits for the city. 
&nbsp; 
"Keira Place is a welcome addition to Wollongong's CBD delivering new housing, affordable homes and activated street-level spaces that will benefit our community for years to come," Brown said. 
&nbsp; 
"Urban Property Group's investment reflects the confidence that quality developers have in Wollongong's future, and I look forward to seeing this precinct come to life."

[smartcode_project:default project_id=144442 project_image_fid=369867] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a>, with interiors by <a href="https://www.apartments.com.au/interior-designers/dko">DKO,</a> Keira Place prioritises liveability and long-term performance, with landscaped shared spaces, generous apartment layouts and a pedestrian-friendly streetscape along Smith Street. 
&nbsp; 
Residents will have access to landscaped podium areas, communal rooftop amenities with views to Mount Keira and the Wollongong skyline, and convenient ground-level retail.

The development will have 10-year Latent Defects Insurance by Resilience Insurance.

[smartcode_project_cta:default project_id=144442]

Groundbreaking marks start of construction at Keira Place in Wollongong CBD

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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The large format retail property sector will likely not be able to sustain the strong growth trend of 2016 as weakening consumer demand for household goods is likely to hurt the sector in the near term, according to new research.
Last year saw a fall in vacancy rates at retail centres, while rental growth was the strongest since before the GFC, investment yields firmed on the back of record investment transactions, and double-digit total returns were recorded. But these buoyant conditions will not be sustained, says research firm BIS Shrapnel’s latest Large Format Retail Property report.
Report author Maria Lee, senior project manager at BIS Shrapnel, notes that the key drivers of consumer demand for household goods—which accounts for the majority of floorspace in large format centres—are either already weak or have started to weaken. Sluggish economic growth and subdued consumer sentiment are likely to continue for some time. 
Meanwhile, housing commencements and alterations and additions activity have peaked, while turnover of existing dwellings fell sharply in 2016. 
“We’re already seeing the effects in turnover data, which has slowed sharply in recent months” says Lee, qualifying that “the larger retailers and chains are holding up better, but they aren’t immune.” 
Chart below shows the slowdown in demand.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/BISShrapnel-chart.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/20/BISShrapnel-chart.png" alt="">
Meanwhile, the closure of Masters and planned reconfiguration of most of its stores into large format centres with an internal mall will cause a spike in ‘new’ supply of centres. 
“There’s still a lot of uncertainty at this stage regarding the fate of the ex- Masters stores. However, if we take at face value Home Consortium’s plans, and allow for Bunnings to take some of the vacant stores, there could be up to 700,000 square metres of ‘new’ centre floorspace as well as new development on sites owned by Masters,” said Lee.
BIS Shrapnel says this represents several years’ demand even allowing for the ‘transfer’ of turnover from Masters to replacement retailers. The report cautions that, at a time of softening demand, the sector could have trouble absorbing the floorspace and forecasts rental growth to weaken. 
On a more positive note, the report predicts stronger consumer spending growth in the longer term and a continued expansion of the retailer pool that large format centres tap into. 
“The sector continues to evolve. Large format centres offer relatively cheap space that is attractive to a range of uses. Some centres are morphing into mixed-use, lifestyle or even convenience centres” says Lee. 
Overall, BIS Shrapnel forecasts internal rates of return of around 10 percent over a five or 10 year investment horizon. This compares well with other shopping centre types and property classes. 
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prateek24-ezbwHMbNAk

Large format retail property to take a breather after strong growth in 2016: BIS Shrapnel

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Mirvac’s flagship West Australian office tower, Allendale Square, has secured a range of retail tenants as it launches a new name for the precinct, Underground at Allendale Square.
The new tenants include 18 food, beverage and service businesses including Perth’s iconic Mary Street Bakery, Mo Espresso, Three Grains and Timeless Beauty.
Old favourites Lalla Rookh Bar and Eating House, Bellini Barber, Lunches Down Under and Zensaki are also available in the 1,600 sqm precinct.
The new name ‘Underground at Allendale Square’ was chosen to reflect the vision for the precinct, which is currently undergoing refurbishment, to create a vibrant retail hub for people to gather and connect. The refurbishment is expected to be complete in May.
<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/2017/02/01/Allendale_B40.jpg" alt="">
The precinct will feature improved access, seating and wifi. 
Mary Street Bakery is looking forward to opening their second city store at Allendale Square.
Co-owner of Mary Street Bakery, Michael Forde says, “The building’s great location and beautiful design caught our imagination. We already have a store at the western end of the city and thought there was a need for another store at the eastern end."
 
<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/2017/02/01/Allendale_D41.jpg" alt="">
The building will have a glass atrium and will open out onto the street.
<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/2017/02/01/Allendale_F19.jpg" alt="">
Mirvac’s group executive of Office MPT, Andrew Butler said, “With the Allendale Square office tower now over 95 per cent leased, Underground is set to become a thriving modern hub for workers to meet, dine and relax."
 
<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/2017/02/01/I01_34.jpg" alt="">
Mo Espresso general manager, Zac Barrett said, “The range of retailers that are going into Allendale Square and the vibrant vision for the development is what got us on board."
 
<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/2017/02/01/I02_Arcade_02.jpg" alt="">
The office tower at Allendale Square is undergoing an extensive refurbishment that includes a re-modeled lobby, brand new end of trip facilities, upgraded lifts and the conversion of level 31 to office space.
The precinct will be brought to life with a public artwork by artist Anne Neil and an architecturally striking glass canopy framing the entrance to the office tower, designed by Christou Design Group.
 
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Allendale Square is close to shops, bus stops and the Esplanade train station.
The leasing agents for retail are Jim Tsagalis and James Hopkins from Lease Equity, while office leasing is being handled by Warren Wright of JLL and Mark Clapham of Sheffield Property.
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j.ballantyne1990-6AQqhLzZaK

New tenants for Perth's Allendale Square retail precinct

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Sydney leads top global cities in office yields, which continue to firm as investors seek safe havens for their funds amidst economic and political uncertainties which look to prevail for some time, according to real estate firm Savills.
The latest World Office Yield Spectrum report by Savills and Australia’s Deakin University found yields across 11 gateway cities had firmed by an average 95 basis points since December 2014, with San Francisco witnessing a dramatic 32 per cent fall from nearly 7 percent to 4.64 percent.
Of the gateway cities, Sydney led the pack offering by far the most attractive yields at 5.37 percent, with LA West and San Francisco the only others offering above 4.50 percent.
Shanghai and LA West recorded falls of just 0.29 and 0.31 percent respectively.
The data from 54 cities across Asia, Europe, the US and Australia, put Hanoi on top with a prime yield of 8.75 percent followed by Ho Chi Minh City at 8.5 percent.
Taipei brought up the rear with the tightest yield of just under 2 percent, while Hong Kong was at 2.5 percent.
Report editor Tony Crabb, Savills national head of Research in Australia, said overall office markets looked set for another year of strong investment.
It will be driven by office property’s most preferred investment status along with economic and political factors which had pushed investors towards the safety of bricks and mortar.
"This is an interesting time in the investment cycle where markets have responded to the inflation/growth trade by pushing bond yields and growth stocks, whilst also recognising office markets should perform well as demand grows’’ Crabb said.
He said with some level of economic and political uncertainty remaining in most markets it was fair to say that office risk premiums would continue to offer very good value and hence drive demand and, in some instances, even firmer office investment yields.
"Much of what happens in 2017 and beyond will depend on the course the US Federal Reserve takes with regards to interest rates and the new President’s policy settings.
Those factors, along with Brexit negotiations and elections in key European countries, will largely determine how currencies behave, how trade flows and how capital moves around the world,’’ Crabb said.
He said if anything would limit office property investment it was the shortage of stock in most gateway markets which had experienced, in some instances, record investment levels in recent years.
"That shortage of stock is being exacerbated by the strength of leasing markets, especially in gateway cities, which is driving tighter vacancy and rental growth, and landlords are happily holding on for the ride,’’ Crabb said.
 World Office Yields: Gateway Cities – 2014 - 2016
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td style="text-align: center;" valign="top" width="129">
 
</td>
<td style="text-align: center;" valign="top" width="129">
December 2016 %
</td>
<td style="text-align: center;" valign="top" width="129">
December 2014 %
</td>
<td style="text-align: center;" valign="top" width="129">
Change %
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
Sydney
</td>
<td style="text-align: center;" valign="top" width="129">
5.37
</td>
<td style="text-align: center;" valign="top" width="129">
6.62
</td>
<td style="text-align: center;" valign="top" width="129">
- 1.25
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
LA West
</td>
<td style="text-align: center;" valign="top" width="129">
5.03
</td>
<td style="text-align: center;" valign="top" width="129">
5.34
</td>
<td style="text-align: center;" valign="top" width="129">
- 0.31
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
San Francisco
</td>
<td style="text-align: center;" valign="top" width="129">
4.64
</td>
<td style="text-align: center;" valign="top" width="129">
6.97
</td>
<td style="text-align: center;" valign="top" width="129">
- 2.33
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
Shanghai
</td>
<td style="text-align: center;" valign="top" width="129">
4.42
</td>
<td style="text-align: center;" valign="top" width="129">
4.71
</td>
<td style="text-align: center;" valign="top" width="129">
- 0.29
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
New York
</td>
<td style="text-align: center;" valign="top" width="129">
4.09
</td>
<td style="text-align: center;" valign="top" width="129">
5.04
</td>
<td style="text-align: center;" valign="top" width="129">
- 0.95
</td>
</tr>
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<td style="text-align: center;" valign="top" width="129">
Singapore
</td>
<td style="text-align: center;" valign="top" width="129">
3.97
</td>
<td style="text-align: center;" valign="top" width="129">
5.29
</td>
<td style="text-align: center;" valign="top" width="129">
- 1.32
</td>
</tr>
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<td style="text-align: center;" valign="top" width="129">
London
</td>
<td style="text-align: center;" valign="top" width="129">
3.88
</td>
<td style="text-align: center;" valign="top" width="129">
4.38
</td>
<td style="text-align: center;" valign="top" width="129">
- 0.50
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
Munich
</td>
<td style="text-align: center;" valign="top" width="129">
3.40
</td>
<td style="text-align: center;" valign="top" width="129">
4.25
</td>
<td style="text-align: center;" valign="top" width="129">
- 0.85
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
Tokyo
</td>
<td style="text-align: center;" valign="top" width="129">
3.20
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<td style="text-align: center;" valign="top" width="129">
3.95
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<td style="text-align: center;" valign="top" width="129">
- 0.75
</td>
</tr>
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<td style="text-align: center;" valign="top" width="129">
Paris
</td>
<td style="text-align: center;" valign="top" width="129">
3.18
</td>
<td style="text-align: center;" valign="top" width="129">
4.52
</td>
<td style="text-align: center;" valign="top" width="129">
- 1.34
</td>
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<td style="text-align: center;" valign="top" width="129">
Hong Kong
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<td style="text-align: center;" valign="top" width="129">
2.53
</td>
<td style="text-align: center;" valign="top" width="129">
3.11
</td>
<td style="text-align: center;" valign="top" width="129">
- 0.58
</td>
</tr>
</tbody></table>
Source: Savills Research
Australia/New Zealand
The $27 billion worth of commercial property transactions recorded in Australia in 2016 remained above the five-year average for the fourth year running, Crabb said.
Meanwhile, the market was on track to record a fifth consecutive year of growth, a lack of portfolios and a diminishing supply of prime properties would limit investment volumes.
Foreign investors were the most active in 2016, purchasing 40 percent of stock reported sold - approximately $10.7 billion - while professional investors.
It is represented by trusts, funds and syndicates, spent $8.75 billion.
Crabb said while both buyer groups remained keenly interested in ongoing investment, yields would continue to firm.
"In some markets, particularly Sydney and Melbourne, market fundamentals are improving rapidly. "We believe this improvement will lead to further tightening in yields as investment capital starts to price in expectations of future NOI growth. This part of the yield cycle is just beginning,’’ he said.
<a href="https://www.propertyobserver.com.au/images/2017/02/14/Savills-1.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/2017/02/14/Savills-1.jpg" alt="">
Asia
In Hong Kong, Savills’ senior director, Research and Consultancy, Simon Smith, said yields across Asian investment markets had firmed but there was still some limited scope for further falls.
"The low interest rate environment, the ongoing search for yield and increasing allocations to real estate are all considered to be positives for the sector.
One of the most significant challenges for investors is a lack of prime office stock and volumes have fallen consistently compared with 2015.
This is a situation which is unlikely to reverse any time soon,’’ Smith said.
He said the lack of liquidity across most asset classes had arguably been masked by the above average number of portfolio deals recorded over the second half.
"Scarcity of assets has resulted in money accumulating on the side-lines causing fundraising to decline versus the previous year,’’ Smith said.
He said despite its inward focus Asian real estate capital had continued to explore overseas markets with the US attracting the lion’s share of deals.
Cross border activity had been dominated by China, South Korea, Singapore and Hong Kong in that order while South Korean activity registered the highest rate of increase.
UK/Europe
Savills director, Research Europe, Lydia Brissy, said Brexit had seen a decline in institutional investment activity but a sharp rise in demand from off-shore private investors.
Many investors, she said, had been attracted by the weakening of the pound which was seen as enough to compensate for a perceived increase in occupational risk.
"Overall, our predictions for 2017 and beyond are investment volumes are expected to trend downwards towards £50 billion per annum, with a swing away from opportunistic deals to income-security plays.
Yields are expected to rise in most sectors, though the stable debt market, low vacancy rates, and global investor demand is expected to put a lower ceiling on prime yields than was reached during the GFC.
Brexit definitely carries a risk of creating a sustained period of occupier uncertainty, but to some degree this should be balanced by lower levels of development activity.
However, until some clarity emerges as to how Britain will exit from the EU, the real impact on the UK market will be hard to quantify,’’ Brissy said.
She said the expectation was that investment volumes in Continental Europe in 2017 would be similar to 2016.
"Although interest rates are expected to rise to 1.16% in the Eurozone, the property market should remain high on investors’ radar.
In France, Germany and the Netherlands where elections will be held, we expect a wait and see attitude, however the prevailing story regarding core countries is the lack of prime product."
She said prime yields in non-core countries remained above the European average, offering more attractive returns and yield compression potential.
"This is especially so in countries like Spain and Italy where strong property fundamentals combined with the availability of portfolio opportunities are attracting foreign investors.’’
USA
In New York, director of US Real Estate Analytics at Savills-Studley, Keith DeCoster, said in comparison to the volatility in equity markets, real estate in the United States held up very well in 2016 with office property sales totalling $124 billion to November, roughly 4 percent below the $129.6 billion in the first 11 months of 2015.
"The 'most-favoured market' status of some gateways is slipping slightly with most buyers showing disdain for markets such as Manhattan and Washington DC, where demand is running short of growing supply," DeCoster said.
"On the other hand, they have remained active in Boston and Los Angeles, where the life science and entertainment/social media sectors continue to grow."
He said Boston’s market fundamentals were among the strongest in the country and appeared as though they had more to run than San Francisco.
It had seen a recent spike in sublet supply and drop off in leasing, while Los Angeles has seen its strongest leasing volume in a decade.
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Sydney leads as global yields remains firm: Savills

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A fully tenanted commercial building with development potential has been listed for sale in Gold Coast City's business hub, CBD Robina.
The two-storey building at 69 Laver Drive has 1,502 sqm of net lettable area over three tenancies, and is located on a 3,774 sqm parcel of land.
The listing agents are Knight Frank's Mark Witheriff and Colliers International's Darrell Irwin and it will be marketed through an offers to purchase campaign closing on March 22.
Witheriff said the property was a cash positive investment in a sought-after location.
"The building has a net passing income of $598,800 per annum, is located in the tightest office market in Gold Coast City and offers significant future potential,” he said.
Property Council of Australia figures released this month (February) revealed Robina/Varsity Lakes had the lowest office vacancy rate of Gold Coast City's five key office precincts at just 6.9 per cent, compared to the city's average of 12.2 per cent.
"It is an investment that really adds up for a savvy private investor or property fund," Witheriff said.
It has been placed on the market by Gold Coast City’s largest developer of office space, the Robina Group.
The fully-tenanted building includes a 1,095 sqm first floor commercial space tenanted by The French Beauty Academy, formerly Gold Coast Training Academy. The lower level fronts the Riverwalk waterway and is tenanted by MedRecruit and Keola Wellness.
The building offers a Weighted Average Lease Expiry (WALE) of 5.5 years.
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Robina tenanted commercial property released to the market

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A waterfront residential development site on 11 hectares set in Sydney’s prestigious Eastern Suburbs has been listed for sale and is expected to sell for more than $280 million. 
Located off Anzac Parade in Little Bay, Little Bay Cove features more than 11 hectares of land including civil works complete along with masterplan development consent which allows for immediate commencement. All remediation, site works, roads, park landscaping and infrastructure have been completed. The site is fully serviced with all required amenities, including water, electricity and gas, according to a media release.
The sale, through an expressions of interest campaign launching February 28, is being managed by Knight Frank’s Tim Holtsbaum and Eugene Evgenikos along with JLL’s Ben Hunter and Sam Brewer.
Holtsbaum said the site is one of the last Eastern Suburbs coastal subdivisions available for development.
“We’ve seen some large residential site sale transactions occur nearby in the South Sydney market but nothing of this prestige, with the coastal lifestyle and beach views,” said Holtsbaum.
“We expect Little Bay Cove to generate significant interest from both local and offshore developers due to its unique characteristics. It is located just 20 minutes’ drive from the Sydney CBD, near all transport and amenity, and is nestled along Sydney’s iconic beaches, stretching from Bondi, Bronte, Coogee and out to Little Bay.”
Fronting Little Bay Beach, the site neighbours four of Sydney’s premium golf courses, including The New South Wales Golf Club, St Michaels Golf Club and the Coast Golf Club. Express bus and future light rail services provide convenient transport to the CBD.
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Residential site with approval in Sydney's Little Bay on sale with $280 million hopes 

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The 1860s Bourke Street terrace that previously homed Melbourne institution Kozminsky jewellers is up for lease.
It's been almost half a century since the popular jewellers closed its doors at the terrace at <a href="https://www.realcommercial.com.au/property-retail-vic-melbourne-502299238" target="_blank">421 Bourke Street</a>.
Colliers International retail agents Cam Taranto and Jarrod Herscu are handling the international leasing campaign.
Herscu said 421 Bourke Street presented “an invaluable opportunity for a new tenant to take advantage of the corner location of a Melbourne CBD icon”.
“This elegant building has a long association with the livestock and real estate industry in Melbourne's early days and the banking boom in its later days,” he said.
“It now rings the successful association of Kozminsky, who operated in the building for more than 40 years.
“We have no doubt the new tenant will be able to enjoy as much success as its predecessor.”
“With retail vacancies within the Melbourne CBD core tightening up year-on-year and currently sitting at about 2.4 per cent, we are seeing further expansion and rental growth through all other sectors of the CBD retail scene,” Herscu said.
Taranto is expecting a large enquiry driven by hospitality operators, which comprised about 80 per cent of deals in 2016.
“We are seeing super hospitality groups, both national and international, including Urban Purveyor Group, PTT Family, Dixon Hospitality, The Publican Group and Seagrass Boutique Hospitality Group, all looking to expand rapidly and even looking to acquire other businesses to gain market share,” he said.
“This was the case with Urban Purveyor Group acquiring Neil Perry's Rockpool and Dixon Hospitality acquiring The Keystone Group in late 2016,” he said.
Colliers International will also be targeting the beauty industry in its campaign, which Mr Herscu said was one of the strongest-performing segments in the market, as well as jewellery, fashion and accessories.
“Along Bourke Street Mall, we are seeing a huge influx of enquiry from international brands, including Apple, Google, Victoria's Secret, Kit and Ace, Suitsupply, Rag &amp; Bone, West Elm and COS, all looking for their first Melbourne CBD flagship or additional space,” Mr Herscu said.
“In addition, due to low vacancy rates, a growing CBD population and strong retail-trading conditions, we are seeing record rentals in the Melbourne CBD.
“The latest deal is a new flagship joint venture between international brands Nike and Footlocker (Hoops), which are paying approximately $10,000 per square metre, a new rental benchmark for a non-corner site in the mall.”
Taranto said the tightly held vacancies and continued population growth had presented opportunity for developers to expand the retail footprint within the Melbourne CBD.
“Two projects that have been in the pipeline for some years, 405 Bourke Street and 150 Queen Street, will include a new retail arcade, offices and apartments sitting on either side of the Kozminsky building and on the outskirts of Bourke Street Mall,” he said.
“Within the northern part of the Melbourne CBD, multi-storey residential developments are shaping a new Melbourne lifestyle. It is slowly becoming the most densely populated pocket in Australia, with more than 3,971 new apartments currently under construction.”
Taranto said that as the retail landscape changed, tenants were looking for spaces that offered long tenor and the opportunity to create their own identities through securing heritage-facade buildings.
“H&amp;M did this on a much larger scale when it secured the GPO, which is now considered a landmark location in the Melbourne CBD,” he said.
“Along Collins Street, this is very common among the luxury brands, such as Chanel, Hermes, Louis Vuitton, Longchamp and Prada, which all have taken long leases on heritage-facade buildings to establish their unique brands.”
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Melbourne's Kozminsky Jewellers space available after closing its doors after 40 years

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Sydney's Verandah hotel in Martin Place has been listed for sale by current owner Dean Haritos through Ray White Hotels.
The hotel, with 1000sqm of licensed footprint is at 60 Castlereagh St and fronts both Castlereagh and Elizabeth Sts.
It currently has a long term lease to Dexus Property Group for 29 years and an annual revenue of $7 million.
Andrew Jolliffe, director, Ray White Asia Pacific said the catchment area, commencing with the 20 floors directly above the hotel and the MLC Tower director opposite, is simply huge.
"With the Federal Court system and newly repurposed Macquarie Bank world headquarters both in very close proximity, the sheer weight of in-situ potential clientele is truly unique,” he said.
“Not to mention the 200 trains per hour forecast to arrive virtually on the hotel’s front door once the State Government funded Metro Station works are completed. With a strong labouring workforce to occupy the vicinity between now and then.
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"The redevelopment of Martin Place Metro station is a phenomenal injection of infrastructure investment in the CBD precinct, bringing some 10,000 commuters to the Verandah doorstep every hour in peak periods; and really speaks to the future-proofed nature of revenue for businesses like Verandah
"Added to which, the ownership of the hotel and 20 very valuable poker machine licences, underwrites the asset value, and provides for a substantive commercial advantage for share of hospitality dollar in one of the most densely populated corporate and retail precincts in Australia.
"Popularity, quality, and the sheer size of the licensed area at Verandah facilitates regular food and beverage revenue at levels not regularly replicated within the industry.
"Added to which is the fact the hotel was last year ranked in the State's Top 200 gaming hotels, illustrative of a prosperous revenue mix."
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The EOI for the Verandah Hotel finished Thursday 16 March 2017. 
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jonathanchancellor-7SQnKwU6yx

Sydney's Verandah hotel in Martin Place listed for sale

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The Mornington Peninsula's Best Western Plus Brooklands Hotel has sold for around $9 million to Melbourne hotel operators.
Located on Nepean Highway at 99 Tanti Avenue the property features accommodation, wedding and function facilities, 53, four-star guest rooms, four function rooms, a heated indoor pool and gymnasium on 9,000sqm.
Scott Callow from CBRE said it was only the second time the asset had been available to purchase.
"The key features that appealed to vying purchasers were the location and large landholding," he said.
"We saw significant interest from a mix of owner operators, investors, business buyers and developers.
“Mornington is continuing to grow as a popular tourist destination, due to the array of beaches, restaurants, wineries and its close proximity to Melbourne’s CBD. The premium hotel is a short walk to the popular Main Street shopping and restaurant precinct and within walking distance to both Mothers and Mills beaches, making it a prime investment opportunity.”
 
 
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Mornington Peninsula Brooklands hotel and venue sold

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Demand from office occupiers is evolving, as revealed in CBRE’s 2016 Australia Occupier Survey, and CBRE expects to see further evidence of this demonstrated in leasing activity in 2017, according to CBRE’s latest report.
The survey targeted 100 large commercial occupiers throughout Australia across a broad range of industries to find out which factors are driving occupiers future real estate strategies.
People, technology and the new economic order are changing our approach to work and thus the concept of how, when and were we work.
This structural shift will increasingly impact on leasing decisions when considering location, building selection, workplace format, quality of building services and amenities, and the customer experience offering.
Occupiers identified consolidation, change of workplace format and growth as the top three real estate strategies they plan to implement in the next three years in order to drive their overall business strategy.
Cost continues to outpace other considerations as the most important factor in the real estate location/building selection decision.
Cost reductions are important to occupiers and rationalising space in a way to achieve this, with a focus on reviewing requirements beyond their current lease.
<a href="https://www.propertyobserver.com.au/images/2017/02/16/Screen%20Shot%202017-02-16%20at%205.35.33%20pm.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/2017/02/16/Screen%20Shot%202017-02-16%20at%205.35.33%20pm.jpg" alt="">
Occupiers cited as key objectives for their future real estate strategy:
. Implementing more-flexible work practices through a new workplace format
. Reducing corporate footprint
. Increasing utilisation rates
From the survey, 57 percent of occupiers expected to increase their staff headcount by 2018 but only 22 percent plan to increase their net lettable area.
This will ultimately translate into more people in less space. The average workspace ratio is predicted to decrease by 5.5 percent as a result.
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As businesses look to consolidate and change their workplace formats to achieve greater space utilisation rates, an efficient floorplate will be key in supporting these goals.
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Occupier demand is evolving as workplace strategies change: CBRE

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I’ve often referred to Canberra as the Goldilocks of the Australian real estate market: not too cold, not too hot, just right.
The national capital seldom booms, nor does it ever seem to crash. It’s so even and steady in its performance, it’s downright boring.
It’s underpinned by a steady economy, high average incomes, low unemployment and the Territory Government’s close control of residential land supply, designed to keep land prices (and government revenue) high.
So it’s no great surprise that the Canberra market is cantering along quite nicely. It hasn’t replicated the boom in Sydney, three hours up the road, but sales activity picked up as 2016 progressed and the number of ascendant markets rose significantly.
Most of the pick-up has been in the housing sector, with apartment sales generally declining compared to 2015. The strong house sales activity has resulted in solid price growth, with some sources recording 10% annual price growth, while others suggest 5-6%.
Overall, compared to 2015, sales activity was a little down in 2016, but only marginally so. Sales in 2016 were higher than in 2012, 2013 and 2014, notably for houses. The December Quarter is always the highest for Canberra sales, and this was true also in 2016.
In terms of total residential sales, volumes have been gradually rising since 2012, when most quarters were a little below 2,000 sales. In 2016, all four quarters delivered well over 2,000 home sales, including 2,400 sales in the December Quarter.
The apartment market peaked with around 1,000 sales per quarter in 2014-15 and volumes have been gradually decreasing since then, with about 850 sales in each of the September and December Quarters of 2016. Previous oversupply in this market has now been largely absorbed (Canberra now has the lowest vacancy rate among the capital cities, except for Hobart) and we can expect unit sales to rise again in 2017.
Meanwhile, the house sales market has gathered strength and the December 2016 Quarter was the biggest for house sales in the past five years, except for December 2015. The number of suburbs with growing sales activity has increased significantly and is the highest since we began our quarterly surveys three years ago.
Overall, the standout characteristic of Canberra is the steadiness of its performance.
Another predictable factor in the ACT market is the predominance of the northern part of the city in terms of markets with upward momentum.
While there are now growth suburbs across the Canberra metropolitan area, the strongest precincts once again are the Belconnen and Gungahlin districts.
Canberra has 19 suburbs classified as Rising Steadily markets and 11 of those are in the Belconnen (six) and Gungahlin (five) districts in the north of the metropolitan area.
These districts also have a large number of suburbs characterised by their consistent sales levels.
Suburbs with rising markets in the Belconnen District include Flynn, Bruce, Macgregor, Kaleen, Holt and Evatt, along with Amaroo, Bonner, Gungahlin, Ngunnawal and Palmerston in the Gungahlin District.
In Holt, house sales have risen from 20 to 30 to 33 to 40 in consecutive quarters, while Macgregor is up from 33 to 37 to 46 to 51. Both are suburbs with median house prices around $450,000 and attract buyers for their relative affordability (Canberra’s median house price is around $650,000).
There are growth markets elsewhere as well, including in the Tuggeranong and Woden Valley districts, as well as in some of the inner-city areas.
But the most typical Canberra suburbs are the ones with steady sales levels. In Dunlop in the Belconnen District, sales in consecutive quarters have been 35, 39, 37, 36, 34, 38, 40, 41, 40, 38 and 36 over the past three years. That kind of steadiness is what Canberra real estate is really about.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can  <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3Cspan%20style=/'display:%20none;/'%3E');%20//--%3E%20%3C/script%3EThis%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3C/');%20document.write('span%3E');%20//--%3E%20%3C/script%3E" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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