High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

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For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

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<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

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The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

[smartcode_project:default project_id=5743 project_image_fid=375281]

For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

[smartcode_project:default project_id=5743 project_image_fid=925]

The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

[smartcode_project_cta:default project_id=5743]

Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

[smartcode_project:default project_id=145324 project_image_fid=372749]

Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

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The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

[smartcode_project:default project_id=145324 project_image_fid=354347]

According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

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Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

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Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

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<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

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A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

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The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

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Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

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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A vacant office building at Noosa Head on the Sunshine Coast has sold for $1.8 million. The 1980s-constructed building, which is on a site of about 1,012 square metres, is located at 24 Lanyana Way, and was purchased by a local investor.
It is understood the purchaser plans to refurbish the building and lease it as individual tenancies up to 850 square metres. It previously had a long standing tenant. John Petralia and David Brinkley of Ray White Commercial Noosa handled the sale on behalf of an interstate investor.
“The property had become run down and a lot of the old internal fit out was left behind by the previous tenant,” said Petralia. “We contacted local charity groups who took away a lot of the items and sold them off and this helped our vendor as the property was now much cleaner.”
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Vacant Sunshine Coast office building sells for $1.8 million

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An Australian communications company has snared a fully leased office building in the heart of the Varsity Lakes Business Centre on the Gold Coast, outlaying $5.125 million.
The 23 Main Street property attracted 25 enquiries from local, interstate and offshore buyers, before selling to Vaya Pty Ltd.
Mr Greg Watson and Tony Stone of Ray White Commercial negotiated the sale on behalf of Northpoint Holdings No. 3.
"Gross rental yield per annum when fully leased for this building is approximately $549,892, while estimated outgoings are low at approximately $107,278, so the purchase price represents a yield of approximately 8.2%" said Mr Stone. He described the sale as "game changer for the Gold Coast office market" as it had buyers seeking yields of around 10%. Vaya is considering renaming the building with the company name and logo.
The building has about 1,867 square of net lettable area and among the tenants is nursing agency Blue Care.
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Fully leased Gold Coast building snapped up

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A private investor has acquired at auction a boutique office building in Melbourne’s Cheltenham for $4.65 million.
The two-level building, at 47a Wangara Road, comprises 1,620 square metres of net lettable area and 70 on-site car spaces.
The sale price reflected a yield of 7.6%. Two tenants occupy the building on three year and five year term leases.
CBRE’s Justin Clarkson, Jamus Campbell and Josh Rutman were the selling agents.
“The campaign experienced some 60 enquiries and competitive bidding from multiple bidders, eventuating in a strong result for this well leased property,” Mr Clarkson said.
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Boutique Cheltenham office building sells under the hammer

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A single-fronted shop in Melbourne's Brighton has set a record price for the suburb, fetching $1.750 million at auction. Four parties competed strongly for the 357 Bay Street shop but eventually a local Brighton family won out.
The sale reflected a tight yield of 3.7%.
Fitzroys senior associate Mark Talbot handled the auction campaign, which saw the property offered for the first time in 60 years.
The property comprises a double-storey retail building of about 150 square metres, on a land area of about 174 square metres. It features retail on the ground floor and a two-bedroom refurbished apartment on the first floor.
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Single-fronted Brighton shop fetches suburb record

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A combination of rising CBD prices, more capital and better stock levels are expected to draw more buyers to Sydney's North Shore commercial property market and stronger sales activity.
CBRE director of capital markets and institutional investments, Simon Kasprowicz expects 2014 to be "a robust year in terms of transactions, with the area recording strong levels of buyer enquiries as investors look for attractive opportunities in suburban markets.”
The current shortage of stock at all levels and increased buyer interest has also led to yield compression across the market.
“The continuation of strong but scarce sales towards the end of 2013, coupled with higher levels of interest from buyers both established and new, is providing owners the opportunity to exit the market and capitalise on yield compressions", he said.
Mr Kasprowicz said buyers were active across all price ranges, . However, he added that the three distinct buyer groups were those looking for A-Grade assets with long Weighted Average Lease Expiries (WALEs) and strong covenants, value-add opportunities with some leasing risks and/or repositioning opportunities, and residential development or redevelopment opportunities.
He also noted that there was strong overseas interest in the residential and redevelopment market, with those groups looking to convert commercial property to residential – "further adding to the increased demand for office assets through the reduction of available fringe office space.” 
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Buyers drawn towards North Sydney commercial property market

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The competition among Australia's "big gun" shopping centres is on. Two of the nation's biggest shopping centres - Melbourne's Chadstone and Westfield Bondi Junction in Sydney - broke past the $1 billion turnover barrier this year, while around $3 billion worth of development work is underway across nine of the major centres in Australia.
The findings were in the latest 2014 Shopping Centre News Big Guns report, which revealed that Chadstone, owned by Colonial First State Property Trust and the Gandel Group, has the highest turnover of any centre in the country with a massive $1.4 billion. Not far behind was Westfield Bondi Junction, which recorded a 4.7% lift in sales turnover to $1 billion plus.
Shopping Centre News (SCN) ranks The Big Guns - Australia’s largest shopping centres - in terms of annual turnover, turnover per square meter and specialty shop turnover per square meter.
One of the most significant findings in the report was the jump in redevelopment projects. Shopping Centre News publisher, Michael Lloyd, said that this year nine Big Gun Centres – those with a leasable area of over 50,000 square metres - were under redevelopment compared to only one in 2013.
“The development pipelines are well underway” and "they account for around $3 billion in development costs", he said. The game had changed dramatically in the last five years, he pointed out with the huge global funds like the Canadian Pension Fund CPPI, the Abu Dhabi sovereign fund, the New York based Blackstone Private Equity Fund and the South Korean Pension Fund all taking stakes in some of the country's best centres and providing the funds for redevelopment.
The benefits of that redevelopment work was demonstrated by third and sixth placegetters on the Moving Annual Turnover ladder, said Mr Lloyd "Westfield Carindale (Qld) and Westfield Fountain Gate (Vic), both recently redeveloped, showed increases in annual turnover of 19.2% and 24% respectively - $908.5 million and $872.3 million,” he noted. Excluding the nine centres under redevelopment, the remaining 82 Big Guns shopping centres accounted for retail sales of $40.26 billion in 2013, up 2.7% on 2012.
While noting that since the GFC growth has been at a slower rate, SCN believes that the growth rate has bottomed and it forecasting an increase in turnover of around 5% in 2014.
The best performing centre - based on turnover per square metre of leaseable area which is considered the best measure of performance - was Mirvac’s Broadway shopping centre in Sydney. Its turnover per square metre was $11,506, a 10.7% increase over last year.
Specialty turnover - which only includes retailers with areas of less than 400 square metres - was the highest at Westfield Sydney at $16,482.
“This year we list 91 centres; more than half of them have specialty shop turnovers in excess of $9,000 per square meter, at that level it means a 100 square metre shop turns over an average of around $17,500 a week,” said Mr Lloyd.
A poignant point raised by Mr Lloyd in the report was the lack of response by retailers to the current demands by shoppers.
"Australia has the most sophisticated shopping centre development and management industry in the world”, he said.
“Our regional centres – the Big Guns - are more advanced than anywhere, but many of our retailers are dragging the chain". He believes that the majority of Australian retailers were yet to "rise to the standards of the top international ‘high street’ retailers; service levels are low, fit-out standards, lighting, merchandising and stock variety are lacking".
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Competition between 'big gun' shopping centres is on

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Australia's largest diversified property group Stockland has swooped up a 19.9% stake in Australand, in what is seen as a prelude to a full takeover bid.
Stockland unveiled the "strategic stake" this morning, announcing it had obtained 115,166,597 securities in Australand at an average price of $3.78. This comprises a 15.7% direct holding and 4.2% indirect interest, it said.
The announcement came as Singapore's CapitaLand also revealed it had sold its remaining 39.1% interest in Australand for about $842 million (S$970 million).
Stockland chief executive Mark Steinert said Australand had a diverse and complementary portfolio of assets, including a quality industrial portfolio and medium density residential projects "that are well aligned with our strategy".
“Over time this holding will enable us to explore strategic opportunities with Australand.”
CapitaLand group chief executive Lim Ming Yan said the decision to divest its remaining stake in Australand was to the "favourable" market conditions and Australand’s share price had performed strongly in the past few months.
“This divestment would allow us to reallocate capital to our core businesses in Singapore and China,” he said.
Stockland's stake is being funded through cash and debt facilities and the transaction is expected to be broadly EPS neutral.
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Stockland swoops on Australand stake in possible takeover precursor

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Offshore interest in Australia's office market has spilled into the metro market, with total sales hitting a six-year high last year.
Total metro office sales came in a $3.69 billion in 2013 - the highest level since 2007 when it reached $5.14 billion, according to the latest Colliers International first half Metropolitan Office Research &amp; Forecast report. Overseas buyer accounted for a lion's share of that transaction activity, at $1.22 billion.
While the figure was inflated by the $413.19 million sale of 177 Pacific Highway to Singapore's Suntec REIT, the report noted that the influx of offshore capital "does indicate that offshore investors are willing to look beyond the CBD markets for more strategic opportunities".
Sydney metro continued to be at the epicentre of sales activity in 2013, with nearly $2 billion of office stock changing hands, while a 10 % spike in transaction volume saw Melbourne Metro experience a record year at just under $1 billion. With the exception of Adelaide, all markets improved on sales volumes from 2012.
Sales were up 3% in Brisbane and 365% in Perth, albeit from a low base. Highlighted in the report was the yield compression in the Sydney and Melbourne metro markets.
Average A grade yields in Melbourne compressed by 14 basis points to 8.93% in the six months to March, with the Outer East market narrowing by 25 basis points. Sydney yields tightened by 14 basis points to 8.20%.
Yields in Brisbane and West Perth we're flat at 8.50% and 9.2%, respectively.
Colliers associate director of research, Anneke Thompson expect overseas buyers to again feature prominently in the metro market this year, "as players in the hotly contested CBD markets search for more generous yields further afield".
But Colliers managing director of capital markets and investment services, John Marasco, cautioned that not all metropolitan markets would be able to "absorb this demand however, as many have a distinct lack of institutional-grade stock".
“In Sydney, the North Sydney market has already proven itself a drawcard for both local institutional and offshore demand, while in Brisbane the Urban Renewal precinct is and will remain the preferred metro location for institutional investors,” Mr Marasco said.
“In Melbourne, St Kilda Road is one of the few metro markets with stock of sufficient scale and quality to attract CBD-type capital.”
Unlisted retail funds were expected to be one of the first groups with mandates to acquire property in that precinct, he added.
Colliers research also found that private buyers made up the bulk of the buyers across all markets and that institutional investors were only net buyers in Brisbane and Adelaide.
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Metro office sales hit six-year high, offshore interest credited

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GUEST OBSERVATION
The GFC impacted employment growth in all capital city markets — at the metropolitan level, the rate of employment growth slowed sharply, whilst in all CBD markets with the exception of Melbourne, employment actually fell.
The chart below shows the comparative growth in stand alone office employment amongst Australia’s major capital city markets up to and since the GFC. It highlights the sustained growth in employment that has occurred across Perth over the past 20 years and, most notably, the extraordinary boost to employment in stand alone office workforce — that is, people that work in freestanding office buildings — that occurred across the metropolitan region from mid 2011 to December 2012 associated with the mining investment boom. But, as highlighted in the chart, office employment in Perth has stalled over the last year.
Chart: Metropolitan stand-alone office workforce by city, index 2008=100
<img src="/images/2014/03/19/taylor%20march%2019%20one.jpg" width="460">
The recovery in employment across Australia’s major capital cities since the GFC has varied markedly, with growth to December 2013 ranging from just under 4% in Adelaide to almost 33% in Perth. The next closest rival, Melbourne, has seen growth of close to 17% over the same period, although the past two years have been weak. Brisbane and Sydney have achieved just 7.4% and 8% growth respectively — indeed, we’ve been waiting some time for the long-expected recovery in employment within Sydney.
Over a longer term horizon, after Perth, the strongest growth in stand alone office employment has occurred in Brisbane and Melbourne. Like Perth, Brisbane has benefitted from major phases of mining investment, as well as having a broad-based state economy, underpinned by rapid population growth and expansion in the financial services and government sectors. Whilst employment growth stalled with the advent of the GFC, it was quick to recover—rising by 9% to June 2012. Since then employment has been impacted sharply by a combination of efficiency drives amongst both government and private sectors and the setback to mining investment.
Following the early 1990s setback to employment caused by recession in that State, Melbourne has witnessed sustained growth off the back of a number of ‘structural positives’ that saw the state economy often benefit disproportionately. Rapid population growth and the ready availability of reasonably priced residential land underpinned strong dwelling investment. Indeed the overall construction sector experienced strong, consistent growth. Office and white collar employment were underpinned by competitive office rents and a strong finance and business services sector. Most importantly, Melbourne sustained an office rental cost advantage relative to most other capital city markets through most of the post-2004 period when it was undergoing strong expansion of its office stock — due largely to the availability of low cost sites in Docklands.
By contrast, Sydney’s stand alone office workforce experienced its fastest period of growth during the 1990s and since then growth has lagged most other capital cities. Since the GFC employment accelerated during 2010, with an expectation that it would be sustained ,but stalled again during 2011 as global economic weakness, low levels of business investment and poor business confidence conspired to hold back employment growth. Most impacted was the key finance and insurance sector.
What will happen going forward? Over the next five years, we expect the eastern seaboard cities will witness the strongest growth in stand alone office employment, with Sydney set to lead the way, underpinned by growing momentum in the construction sector, stronger public sector investment and a steady improvement in the state economy.
Beverley Taylor is director of property with <a href="https://www.bis.com.au/" target="_blank">BIS Shrapnel</a>.
 
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All capital cities have seen post-GFC employment recovery

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NAME: Cameron Taudevin<img src="/images/2014/03/19/taudevin-profile.jpg" alt="" style="float: right;">
POSITION: Senior negotiator of retail leasing
COMPANY: JLL
OFFICE LOCATION: Queensland
How long have you been in the industry?
Six years in April
What’s happening in the area you specialise in?
There has been a lot of activity from international brands seeking to enter the Brisbane market, which is something I expect to continue. The emergence of Edward Street as the high-end fashion destination within Brisbane will continue which is exciting for Brisbane locals and visitors. Over the longer term, the impact of the Queens Wharf precinct on the retail market within Brisbane will be interesting.
Describe the most interesting property you have sold?
Supporting French luxury retailer Cartier enter the Brisbane market through the lease of their largest Australian store at 170 Edward Street, Brisbane.
What are the ingredients to being successful in your job?
Being honest, approachable and enthusiastic. Never become complacent.
What aspects of your role do you enjoy the most?
Working within a dedicated and passionate team, and engaging with clients and tenants to help deliver good outcomes for them.
Where would you invest a spare $750,000?
I think that the Brisbane near-city residential market is a great place to invest at the moment. With the housing affordability gap between Brisbane and Melbourne/Sydney beginning to increase, I think that we will begin to see strong interstate population migration over the medium term leading to good house price growth.
Which football team do you support?
The Queensland Reds.
What’s your favourite app or techno gadget?
Instagram.
How do you use social media?
To stay in touch with people overseas.
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