<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" 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/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Adelaide

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A selection of New York-inspired “sky loft” apartments have been released to the market within the $100 million Kodo development in the Adelaide CBD.
Australian building company Watpac commenced construction of Kodo earlier this year and anticipates completing works by the end of next year.
Believed to be the highest loft-style apartments in the city, the nine new sky lofts will be situated in the tower of the 30-storey development.
The highest sky loft will be on level 27.
All of the double-storey sky lofts feature two bedrooms, two bathrooms and two balconies providing uninterrupted views to the Adelaide Hills.
They also each include a separate laundry, powder room, extensive storage and modern kitchen with Miele appliances.
Steve Wise, CEO of developer Flagship Property Holdings, said Kodo has developed the sky loft apartments with world-class architect Woods Bagot in direct response to market demand.
“We had a terrific response to our loft apartments on the podium (situated on level four of Kodo at the base of the main tower), which are now all sold but continue to be an attractive floorplan for potential purchasers looking for something larger and unique,” he said.
“Woods Bagot’s design of the building has allowed us to replicate this experience higher up the tower as sky lofts.
“Lofts are especially popular in cities like New York but they’re a rare find in Adelaide, so we’re anticipating these apartments will generate plenty of interest, particularly among people looking to downsize and move into the city.
“Characterised by their open plan and access to natural light, these new sky lofts also offer exceptional views of the beautiful Adelaide Hills, which will no doubt be a key selling point for buyers too.”
<img src="https://www.urban.com.au/images/2017/06/09/Kodo%20-%20Peter%20Miglis%20from%20Woods%20Bagot.png" alt="">
Wise said prices for the new sky lofts start from $760,000.
Located on Angas Street near Victoria Square, Kodo includes a four-level podium from ground level which will incorporate car parking, bicycle parks and residential apartments.
On the top floor of the podium, an exclusive resident sky garden will be established, with landscaped entertaining and recreation areas, as well as surrounding apartments with mezzanine floors and generous private terraces.
Additional one, two and three bedroom apartments will then rise up another 26 levels, featuring sweeping views towards the Adelaide Hills and coastline.
The Kodo sales suite at 33 Angas Street in the city, directly adjacent the construction site, is open from Tuesday to Saturday between 11am and 3pm.
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j.ballantyne1990-6AQqhLzZaK

Kodo releases Adelaide’s highest loft apartments

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BRW Rich Lister Shaun Bonétt’s Precision Group is selling a 50 per cent stake worth a $400 million in two prized CBD retail assets.
He is divesting the stakes from Adelaide Central Plaza in Adelaide and MacArthur Central in Brisbane, which has iPhone-maker Apple’s largest store in Australia.
Bonett appointed JLL’s head of Retail Investments – Australasia, Simon Rooney, for the stake sale.
According to JLL Research, both the shopping centres are in a select group of just 12 Australian CBD shopping centres of more than 15,000 square metres in size nationally.
Bonétt founded the Precision Group in 1994. It has owned Adelaide Central Plaza since its development in 2000 and MacArthur Central for the past 10 years.
His team, headed by ex-Westfield and Woolworths senior executive Trevor Dill, has developed the centres. Along with Apple, the mall has a Woolworths supermarket and Big W. The 15,085-square-metre centre has 39 specialty shops.
The 27,801-square-metre Adelaide Central Plaza is a luxury shopping complex, anchored by a strong-performing 22,922 sq m David Jones department store, plus a Tiffany &amp; Co and Pandora and 44 specialty shops.
The centre also has the potential for further development of a residential tower above it.
Rooney said the plaza was at the centre of Adelaide's "super-prime" retail precinct, positioned to attract international retailers.
"Investors remain very attracted to major Australian CBD retail assets for their defensive nature and strong-income-growth, value-add profile," Rooney said.
"The drivers of CBD retail trade continue to remain strong and are being fuelled by booming international tourism and the steady inflow of international retailers.
"There is now significant potential for owners to capitalise on this increasing demand for limited prime CBD retail space from new and existing international retailers, each trying to establish and grow in the Australian market."
As for the Brisbane asset, Rooney said that MacArthur Central would benefit from a surge in population as apartment supply in inner-Brisbane is expected to peak in 2021 with the opening of Australia largest casino resort and a dramatic increase in the amount of student accommodation.
"Growth in the resident population will further broaden the demand for different retail categories, such as groceries, household goods and services," he said.
“The upswing in tourism in Queensland will drive demand for discretionary retail such as fashion and food and beverage.” 
According to Tourism Research Australia, international tourist arrivals to Queensland grew by 9.7% in FY16.
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jonathanchancellor-7SQnKwU6yx

BRW Rich Lister Shaun Bonett to sell off $400 million stake in CBD retail assets

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In Adelaide, 7.1 percent of houses and 10.5 percent of units resold over the December 2016 quarter transacted below their previous purchase price, according to CoreLogic's recent Pain and Gain report.
The property data firm says that the proportion of loss-making resales trended lower over the quarter for units.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/Screen%20Shot%202017-04-21%20at%2010.24.28%20am.jpg" target="_blank">Click to enlarge</a>
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The council areas with the highest proportion of loss-making resales over the quarter were: Mallala (100 percent only 1 sale), Playford (18.3 percent) and Gawler (12.7 percent).
The Prospect and Walkerville council regions each had no resales at a loss over the quarter.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/Screen%20Shot%202017-04-21%20at%2010.24.50%20am.jpg" target="_blank">Click to enlarge</a>
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Playford and Gawler lead Adelaide's loss-making suburbs: CoreLogic

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The industrial market has been flat for several years and the effect has been a sporadic performance by the entry-level market at best, according to valuation firm Herron Todd White’s May update. 
The General Motors Holden (GMH) car manufacturer is set to shut the doors of its Elizabeth plant in October 2017, ending 60 years of construction in Australia. 
This decision by GMH following the federal government’s policy shift to no longer support the industry as well as the problems facing almost all forms of general manufacturing in South Australia are having flow-on effects through the broader economy. 
One positive has been the securing of defence construction contracts. After the completion of the Air Warfare Destroyer (AWD) construction contract, the Future Frigates programme will commence in 2020 with an estimated spend of circa $35 billion. 
Following this in 2022 is the Future Submarine project, comprising 12 submarines at a spend of circa $50 billion. The projects are expected to provide over 2,000 jobs. 
In addition, the South Australian government has significantly increased its expenditure on infrastructure projects, add HTW.
In 2015/16 the budget was $1.8 billion which has increased to $2.2 billion in 2017/18. 
The projects are: 
• Darlington Upgrade 
• Anzac Highway to Darlington 
• River Torrens to Anzac Highway 
• Regency Park to Torrens Road 
• South Road Expressway 
• Northern Connector 
The combined effect of the defence contracts and the infrastructure expenditure is going some way to soften the blow but the fallout to the South Australian economy has been harsh. 
Some analysts are reporting recovering demand for blue-chip investment assets with strong long-term lease covenants but this is not having an impact on entry-level demand. 
The demand within precincts such as Wingfield, Dry Creek and Cavan in the north and Edwardstown, St Marys, North Plympton and Lonsdale in the south is far more tied to locally based demand and supply issues. 
The low interest rate environment is making renting less attractive but the subdued market conditions coupled with low interest rates are making selling equally unattractive. Agents are reporting that owners are reluctant to sell due to the absence of alternative opportunities in a generally flat market. The result is low transaction numbers and few opportunities. 
The climate is tough for first time investors in the industrial arena. The opportunities are few and far between but the secret may lie in buildings that have flexible alternate use opportunities. 
“While you will have to accommodate conversion cost and heavily incentivised leasing arrangements in your pricing, the result may be revitalising an otherwise economically obsolete property,” says HTW.
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Holden closure, manufacturing slowdown hitting Adelaide economy: HTW 

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Contraction has been the underlying theme in Adelaide’s office market in the past 12 months and the large vacancies created by multi-national tenants have caused a ripple effect down into the below $10 million market, according to valuation firm Herron Todd White’s latest April update.
Not surprisingly, Adelaide is at the bottom of the market cycle in HTW’s commercial property clock for offices.
Over the past 12 to 24 months, the downturn in business activity throughout South Australia has created vacancies with the likes of Santos, BHP and Telstra all contracting their tenancies into smaller, compact areas. 
Investment activity within prime assets that provide secure lease covenants and long WALEs is expected to remain strong over the next 12 months. 
“Similarly, we don’t anticipate there being a significant change to the risk-averse pricing of lesser quality assets being 30% to 40% below prime assets,” say HTW.
However, the construction phase in the CBD office market is coming to an end. There are a few major projects due to in the short to medium term: 
<ul>
<li>
<a href="https://www.realcommercial.com.au/property-offices-sa-adelaide-501486447" target="_blank">Frome Flinders office building</a> is now finished and part occupied by Grant Thornton. </li>
</ul>
 <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/2017/04/21/HTWAdelaide.jpg" alt="">
<ul>
<li>113-115 King William Street, Adelaide’s sixth tallest building at 25 levels and 5,799 square metres.  </li>
</ul>
The completion of these building has contributed to the increase in Adelaide total vacancy to 16.2% from 15.4% in January 2017. 
There are analysts reporting that the contraction of space has slowed and with the limited planned addition of space, that vacancy will contract over the next 12 months. 
When you break down the vacancy rate, the majority sits in lower grades. 
<a href="https://www.propertyobserver.com.au/images/2017/04/21/AdelaideMktSummary.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/21/AdelaideMktSummary.png" alt=""> 
 <img src="https://www.urban.com.au/images/2017/04/21/AdelaideOfficeGrade.png" alt="">
“We consider that a period of rejuvenation will begin, however this is unlikely to result in significant new office space in the short term. As it starts it will take lower grade buildings off the market and place downward pressure on the vacancy rate,” say HTW.
There also exists the possibility of buildings being converted to residential accommodation. A number of residential developments will soon be competed which will increase the number of units in the market. The depth of this unit market may be tested and likely to delay future conversion of any obsolete office buildings. 
There is however a sense that the period of high vacancy may be beginning to end, concludes HTW.
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Adelaide office market undergoing contraction: HTW

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Investment activity in Adelaide has reached new high as vacancy falls in suburban markets, according to Colliers International’s latest Metro Office report.
“There is strong demand for office assets from investors, with a record $103.87 million ($5 million+) worth of office transactions recorded in 2016," it said.
This was the highest level of investment in metro markets on record.
The largest sale was the GP plus Clinic, 16 Playford Blvd, Elizabeth, which sold for $42 million in November 2016.
This building had a 13.8 year lease term remaining and sold on a yield of 5.8 percent to Australian AREIT.
"Prime quality assets with long lease terms are in high demand across all office markets which has resulted in a tightening in yields for the suburban markets,” the report stated.
<a href="https://www.propertyobserver.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%202.04.41%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/2017/05/02/Screen%20Shot%202017-05-02%20at%202.04.41%20pm.jpg" alt="">
Colliers says that the Adelaide office market is still offering investors higher returns than some other office markets and this is driving demand.
“It is the lack of stock being offered to the market which is likely to restrict sales volumes going into 2017. New supply in the Fringe market remains limited, with most of the supply which has been added over the last 12 months being stock which has been withdrawn, refurbished and then offered back to the market."
The most recent refurbishment completed was 8 Greenhill Road, Wayville which was completed in late 2016, the report said.
This has contributed to an increase in vacancy to 11.3 percent as at January, says Colliers.
“Also contributing to the increase in vacancy is the move of Grant Thornton into the Adelaide CBD market, which resulted in -1,260 sqm of net absorption in the last six months.
This brought total annual net absorption for the fringe market to -8,126 sqm as at January 2017.
Rents in the fringe eased over the last 12 months, with Grade A effective rents falling by 4.8 percent.
This was mainly due to an easing of the top end of rents in the fringe market.
Incentives have however remained stable with a wide range of 15 to 25 percent.
There are two buildings currently under refurbishment and due to be completed in the third quarter of 2017.
These are 127-128 Greenhill Road and 100 Greenhill Road, which will add 2,742 sqm to the Fringe market and is likely to result in an increase in vacancy in the second half of 2017, said the report.
<a href="https://www.propertyobserver.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%202.04.49%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/2017/05/02/Screen%20Shot%202017-05-02%20at%202.04.49%20pm.jpg" alt="">
The fringe market has seen 8,433 sqm of withdrawals over the last two years, but most of these buildings have been refurbished rather than redeveloped.
“There has been a change in the parking restrictions along Greenhill Road, with clearways in place until 10 am and then from 3 pm. This restricts client parking and is likely to restrict demand in the future.
"Several of the buildings in the fringe market do not have disability access and therefore the first and above levels can be more difficult to lease."
When most of these buildings were built in the 1980s, there was one space allocated per 25 sqm, however, now the ratios demanded are more likely to be one space to 12 to 15 sqm, the report said.
This area has also been rezoned to allow for higher building heights and mixed use including residential.
Colliers expects that over the next five years the fringe market will see more withdrawals.
“Over the next five years we expect the Fringe market to see more withdrawals which will see new developments with a change of use. With vacancy forecast to increase for 12.7 percent over the next 12 months it is likely that rental growth in the fringe market will be limited over the next 12 months."
Incentives are expected to remain stable within the current range of 15 to 25 percent, it said.
The suburban market has seen vacancy tighten to 6.5 percent.
This is down from 7.7 percent in September 2016.
All markets saw a fall in vacancy, with the east seeing vacancy fall to 4.8 percent and the south to 1.8 percent.
New supply in the suburban market remains restrained.
The only major construction is the Port Centre at Port Adelaide.
This 3,238 sqm building is currently under construction and is due to complete in 2018.
This building is fully committed to Australian Customs on completion, said the report.
<a href="https://www.propertyobserver.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%202.04.59%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/2017/05/02/Screen%20Shot%202017-05-02%20at%202.04.59%20pm.jpg" alt="">
There are several smaller projects in the pipeline, but most are seeking pre-commitment prior to construction commencing.
Colliers says that the suburban market is very much needs based and therefore tends to have lower vacancy as there is limited speculative development in this market.
“Rental growth in the suburban market has remained stable over the last 12 months with a rental range of $265 to $335 per sqm net. Incentives have also remained stable, within a range of 15 to 25 percent."
With vacancy falling it is more likely that incentives may begin to fall which will lead to growth in net effective rents, said the report.
An example would be 1284 South Road, Tonsley (above) which has been leased.
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Adelaide office investment at new high: Colliers

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A developer is offering apartments with free stamp duty till June 30 in Adelaide.
East End Apartments, located at 293 Pirie Street, are positioned with the CBD and come with all the lifestyle benefits of living in the city, according to the description on their website.
Located on the edge of Rymill Park, the apartments are close to the food and wine mecca of Rundle Street. The are close to venues of all the festive events and activities that Adelaide enjoys and is known for on the world map – Clipsal 500, Adelaide Fringe and so much more, it says. The development is also close to schools and universities.
A partnership project from developers Wellstone and Regional Pacific Capital (RPC), East End offers 145 apartments in combinations of one bedroom, two bedroom and three bedrooms with or without car parking. 
Prices start from $379,000 for a two-bedroom, one bathroom apartment and go up to $599,000 for a three-bedroom, two bathroom apartment.
East End Apartments were also named in the national top 10 of most clicked-on apartments, according to a post on www.realestate.com.au.
Colliers International, which is marketing the project, said the free stamp duty offer is for apartments at or below level 8.
Not just that, the ad says there are rental guarantees on some apartments.
The campaign says rental yields are expected to go up to 6.11 percent in the years to come as Pirie Street evolves.
The marketing for East End Apartments is by Colliers’ Nick Pelvay and James Polacek.
The project is expected to be completed by 2018 end.
 
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Adelaide's East End development offers free stamp duty on apartments

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Major construction work has commenced on the first phase of West Franklin, an urban regeneration project located in the West End part of Adelaide’s CBD.
The work is being carried out by Built Environs, who were awarded the $90 million contract earlier this year by global property development company Greaton. Hundreds of construction jobs will be generated during stage one, with over seventy subcontracting firms employed.
Situated on the corner of Franklin, Elizabeth and Morphett Streets, the new West Franklin precinct comprises 560 apartments and penthouses spread across four towers.
Residential facilities include a 20 metre wet edge lap pool, gym, spa, sauna, resident dining and lounge rooms, sky park with BBQ facilities and landscaped gardens, resident cinema, golf simulator and roof top bar showcasing views of Adelaide CBD, the ocean and Adelaide Hills.
“Greaton is helping stimulate the Adelaide economy by bringing this landmark project to life and creating hundreds of local jobs. West Franklin is located in an area that has been dormant for many years. The sheer size of this project will help activate this entire precinct,” commented Nicho Teng, managing director of Greaton.
“We are creating a new affordable urban lifestyle in West End that has never been seen before. West Franklin is expected to become an iconic lifestyle destination that the West End community will be very proud to call home,” he said.
West Franklin apartments have been pitched at the affordable luxury market to appeal to a broad cross section of purchasers, with over 70 per cent of stage one already sold. Local Adelaide architects Brown Falconer were chosen to lead the exterior design and interior fit-out.
Due to be completed early 2019, the first stage of West Franklin features 272 residential apartments spread across two towers. They both share a common podium comprising 1,100 sqm of retail on the ground level, resident facilities and car parking.
“The commencement of work on site is an important milestone for both Greaton and Built Environs,” added Daryl Young, Built Environs managing director.
“After the design finalisation phase and procurement of our key sub contracts it is exciting to see action on site,” he said.
For more information, <a href="https://www.westfranklin.com.au" target="_blank">click here</a>.
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Construction starts on $300 million West Franklin development

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Retail throughout metropolitan Adelaide has not shown any significant growth for several years, according to Herron Todd White’s latest report.
The property valuation firm says that retail trade figures published by Australian Bureau of Statistics (ABS) show retail turnover for South Australia have been at growth per quarter of below 1.5 percent since December 2014 2.4 percent growth, which was the highest quarter of growth since March 2008.
This is consistent with the national trend.
"This poor retail performance is not expected to change in the short term, with the low interest rate environment and rising house prices being offset by weak wage growth and continued softening in the labour market.
The sustainability of many businesses is challenged when retail trade continues to be this poor.
As a result, rent growth has stabilised, however in some sectors, reduced significantly. Vacancy is up and incentive use is increasing," the report stated.
Retail strip shopping has continued to show decline with cafés the best performing use.
In particular, rural retail tenancies are being negatively affected by contractions meaning that there is no demand for a commercial use.
"In some cases, within smaller towns, unless these shops can be converted to a residential use there is almost no demand.
Key locations such as The Parade Norwood, O’Connell Street North Adelaide and Jetty Road Glenelg, which are the premium suburban retail streets, remain at values out of reach to owner- occupiers, and with declining rentals they are less attractive to risk sensitive investors.
Even Rundle Mall, at the heart of the Adelaide CBD is experiencing vacancies," the report advised.
Shopping centre rents are also reported to be decreasing even within otherwise well performing centres.
This is resulting in numerous tenants being retained in ‘Holding Over’.
"Hold Over rents typically include penalty rates which may be considered better than a vacancy to the managers, this will take time to be absorbed," the report stated.
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Adelaide retail market shown no growth for several years: HTW

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Adelaide’s popular Publishers Hotel is up for grabs, generating interest from developers, hotel operators and investors in a market devoid of large-scale development opportunities.
On a 2,112 sq m dual corner site at <a href="https://www.commercialrealestate.com.au/property/108-112-franklin-street-adelaide-sa-5000-2013504127" target="_blank">108-112 Franklin Street</a>, the CBD pub comprises a boutique front bar, contemporary restaurant, modern kitchen, 600 sq m function room, offices and storage space.
Colliers International’s Alistair Mackie and Paul van Reesema are marketing the property until offers close May 11.
“This property represents an excellent opportunity to acquire a strategic mixed-use development site with adaptive improvements and hotel licences,” Mackie said.
“In the immediate term, options exist to acquire the freehold only or continue operating the hotel and, in the longer term, incorporate this valuable asset into a mixed-use high-rise development,” Van Reesema said.
“Further down the track, developers, hotel operators or speculators can develop the property to its full potential and reap the benefits of owning a large CBD site located only 350 metres from Adelaide Central Market.”
Mackie said the current improvements provided a gross building area of about 3,650sqm.
<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/2017/04/18/Publishers%20Hotel%202.jpg" alt="">
“The elongated shape of the site provides developers the ability to stage high-rise developments up to 17 levels,” he said.
The site is in a rapidly evolving growth precinct of the city, which has undergone significant gentrification during the past five years, including the completion of Quest on Franklin’s serviced apartments, PWC headquarters and Vision On Morphett high-rise apartments.
“It is anticipated that increased population within the area will complement and enhance the range of opportunities and experiences provided in Adelaide, thereby boosting its lifestyle and tourism potential,” Mackie said.
On offer is the freehold site and improvements, together with the hotel leasehold.
Buyers may elect to acquire both or can choose to exclude the hotel leasehold.
The option exists for the vendor to leaseback the hotel for a short period to assist the purchaser during the transitioning phase.
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