Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Joel Robinson

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

[smartcode_project:default project_id=135546 project_image_fid=367096]

The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363511]

<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

[smartcode_project_cta:default project_id=135546]

Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Ceerose Founder Edward Doueihi told Apartments.com.au the developer’s long-standing presence in Leichhardt and the Inner West had given it a strong understanding of how the area has evolved and where its future opportunities lie.

“Ceerose has had a long-standing presence in Leichhardt and the Inner West, giving us a unique understanding of the area’s evolution and future potential,” Doueihi said.

“Having delivered projects throughout the region, we have witnessed the suburb’s transformation first-hand and understand the opportunities for its continued growth.”

Doueihi said that understanding also informed the planning process, with a comprehensive Stakeholder Engagement Outcomes Report prepared before the application was lodged.

The report identified the key issues and concerns raised by neighbouring residents and other stakeholders, allowing those matters to be considered and incorporated into the design where appropriate.

He said the delivery of additional housing would also play an important role in supporting the revitalisation of Norton Street and the Italian Forum.

“By increasing the local residential population, the development is expected to strengthen demand for local businesses, encourage further investment, and help restore the vibrancy that made the precinct a thriving destination in the early 2000s.”

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Doueihi founded Ceerose in 1998 and has grown the business to become one of Sydney's more active apartment developers in recent years, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

First look: Ceerose doubles down in Leichhardt with adaptive reuse of former warehouse site

Adelaide

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The Adelaide industrial markets have continued to see improvements in vacancy over the first half with vacancy falling to 4.8 percent, down from five percent six months ago, according to Colliers International’s latest report.
Leasing enquiry has also continued to improve with several large requirements in the market which are unlikely to be satisfied with current supply.
This is likely to lead to further design and construct activity in 2017 and into 2018.
One of the largest pre-commitments in the Adelaide industrial market for many years was secured and is under construction in Gillman for a 20,000sqm facility for a Multinational Corporate Client.
On the investment side, there has been limited activity in the market above $5 million price bracket with total sales volume of $50.1 million year to date which is about half of the 10 year average for sales.
Sales below $5 million has seen more activity with owner occupiers being the most active purchaser group in the market.
There has also been an improvement in enquiry to purchase industrial property which is likely to lead to higher sales volumes through the last quarter and into next year.
This has been driven by the low interest rate environment and the opportunity to purchase a facility through a superannuation vehicle or through the business.
This shift has impacted leasing activity with a number of leasing appointments transferring to sales campaigns.
The awarding of the submarines contract to DCNS earlier this year and the building of the o shore patrol vessels in the short term has seen Adelaide become the defence hub in Australia.
The total defence spend for the Federal government is over $90 billion, with a signi cant amount of construction of these projects to occur in Adelaide. This has ensured that there is a future for the defence sector in Adelaide for the next decade and beyond.
Although it is still early in the project, it is expected that there will be several requirements for the construction of new facilities for the submarines project.
The Federal government has invested in the Centre for Defence Capability in Adelaide which will drive innovation in the defence sector as well as open up international opportunities for the defence sector.
This centre is based in Adelaide with a 10 year $230 million federal commitment to grow the defence sector. This sector is likely to drive demand with the current facilities unlikely to meet the demand for this project and hence it is likely to result in construction of new facilities, mostly likely in the northern markets.
Vacancy in the Outer North market has recorded the lowest vacancy rate of all of the precincts with a vacancy rate of 2.8 per cent. This is a dramatic turn-around from 12 months ago where vacancy was recorded at 19.9 per cent.
The Outer North market has the highest exposure to the closure of the Holden plant expected late in 2017, and the high vacancy recorded 12 months ago was a result of several suppliers vacating upon the announcement of the closure.
The Outer North has seen five sales transactions over the last three months with two investment sales and three vacant possession sales which were purchased for owner occupation.
The owner occupier sales were originally listed as leasing opportunities.
The Outer North industrial market are offering very competitive rents for a prime grade buildings and is therefore are an attractive option for tenants.
Prime rents have stabilised over the last 12 months and incentives have also remained stable and therefore there is limited change in effective rents over the last 12 months.
The Outer North market has undergone this significant correction in rental and incentives which has impacted on overall vacancy over the last two years and although there is still likely to be some further vacancy when Holden closes, it is unlikely to be as significantly affected as first predicted.
Despite this there are still some head winds in this precinct with the closure of Holden due in late 2017 as they are the largest occupier in the area.
A number of strategic discussions around the closure of the site have mooted several opportunities, however it remains to be seen what will happen with the Elizabeth site and the surrounding area.
It is clear from recent activity and the significant drop in vacancy rates in the precinct that occupiers, landlords and owners are reacting well in advance of the closure benefiting the whole market.
The next two stages of the upgrade of the north south corridor has commenced.
The Torrens to Torrens project addresses the 3.7 kilometre section of South Road between the Torrens River and Torrens River.
The scope of this project includes the lowering of a 2.5 km section of road, an overpass of the Outer Harbor line and upgrades to the to Torrens Road, Hawker Street, Hurtle Street, Port Road, Grange Road/Manton Street and Ashwin Parade/ West Thebarton Road intersections. This road will have no traffic lights and will see three lanes run in both directions and is due to complete in 2018.
The Darlington upgrade project has commenced construction which will address the section of Main South Road between the Southern Expressway and Ayliffes Road. This will connect the Tonsley site to Flinders University with joint federal and state funding to extend the Tonsley line from the current terminus at Tonsley to the Flinders Medical centre and the Flinders University.
The State and Federal governments recently announced joint funding of $985 million of for the Northern Connector project. This will join the Northern Expressway, Port Wakefield Road, South Road Expressway and the Port River Expressway and will bypass six busy intersections along South Road.
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j.ballantyne1990-6AQqhLzZaK

Vacancy continues to fall across all markets in Adelaide

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The recent Savills Prime Full Floor Availability Report indicates the state of the leasing market and is used to assess office stock vacancy in a different manner to most vacancy surveys.
The report graphically shows each Premium and A grade building, as well as top B grade buildings in the CBD on a floor-by-floor basis.
The report highlights which floors are available for lease in each building, now and in the near future, including those under construction and refurbishment.
The September 2016 Adelaide Prime Full Floor Availability Report results are detailed below.
<a href="/images/2016/10/25/Adelaide%20full%20floor.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Adelaide%20full%20floor.jpg" alt="">
Compared to September 2015, the number of full floors available has increased from 47 to 65 in September 2016.
Of the 65 prime floors, all are available for occupation within the next six months. All of this space is available for occupation as either direct or sub-lease vacancies.
Further options exist for tenants seeking B grade buildings, with 38 full floors currently available to the market.
The chart below tracks available space within prime office buildings as a percentage of the total prime office space in the CBD.
On a quarterly basis, the number of prime full floors available has increased from 57 in June 2016 to 65 in September 2016, representing 13.1 percent availability rate.
<a href="/images/2016/10/25/Adelaide%20office%20full%20floors.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Adelaide%20office%20full%20floors.jpg" alt="">
According to the Property Council of Australia (PCA), the Adelaide CBD office market vacancy rate increased in the 12 months to June 2016, reaching 15.8 percent, up from 13.5 percent in June 2015.
This is the highest vacancy rate since 1999, however not significantly higher than the five year average of 13.0 percent.
A similar trend has occurred in the Fringe office market. The headline vacancy rate in the Fringe increased from 8.0 percent in June 2015 to 10.2 percent in July 2016, according to the PCA.
There is an increasing gap between prime and secondary grade space, with A- Grade buildings recording a decline in the vacancy rate for the first time in two years.
<a href="/images/2016/10/25/Adelaide%20CBD%20vacancy%20rates.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Adelaide%20CBD%20vacancy%20rates.jpg" alt="">
The majority of the increase in the overall CBD vacancy rate at the tail-end of 2015 can be attributed to an increase in the availability of sub-lease space in A and B Grade buildings, however sublease vacancy now declined marginally during the first half of 2016.
Around 10,000 square metres of sublease space has been leased, while direct vacancy has increased. A and B Grade buildings are mostly responsible, with vacancy in both of these grades showing the largest movement in available space in the six months to July.
The return of refurbished space in 81-95 Waymouth Street recently, along with 50 Flinders Street and the partial return of 1 King William Street earlier this year, added almost 40,000 square metres of A Grade stock to the market.
While some of this has been absorbed through the relocation of PCCU and the Department of Environment, Water and Natural Resources, subsequent backfill and rationalisation of other space has placed some pressure on supply levels and thus the amount available vacant space in the market.
<a href="/images/2016/10/25/Adelaide%20office%20vacancy%20rate.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Adelaide%20office%20vacancy%20rate.jpg" alt="">
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Number of full floors available in Adelaide has increased compared to last year: Savills

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In the 12 months to September 2016, Savills' latest quarterly report identified approximately 137,100 square metres of leasing activity in the central Adelaide office market, including Adelaide CBD and fringe areas.
This an increase on activity levels 12 months prior and above the five year average of approximately 97,500 square metres.
The majority of these leases (approximately 80% of the volume identified leased) were in the Adelaide core precinct.
Some 70% the deals reported in the 12 months to September 2016 period were new tenants, while 30% were renewals and sub-lease deals.
Of the 137,100 square metres identified leased in central Adelaide in the 12 months to September 2016, the government and community sector dominated activity by volume of space leased.
However, the property and business services sector had the greatest number of transactions.
A selection of recent leasing transactions is displayed in the tables below.
<a href="/images/2016/10/25/Adelaide%20leasing%20table.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Adelaide%20leasing%20table.jpg" alt="">
Savills’ Adelaide Lease Expiry Report analyses a database of lettable floor space in the CBD and fringe office markets. As at the September 2016 report, it is estimated that an average of 115,000 square metres of leased space in the CBD will come up for renewal each year for the next three years.
Around 43% of this space is leased by the government and community sector, one of Adelaide’s largest occupiers, however, the finance and insurance and the property and business services sectors combined have a similar amount of space coming up for renewal.
In the short-term there is likely to be ongoing demand from tenants seeking to rationalise existing space, as well as from those seeking expand or upgrade into new space.
<a href="/images/2016/10/25/Adelaide%20office.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Adelaide%20office.jpg" alt="">
The state and federal government have been significant takers of space during the last quarter.
Traditionally one of the largest occupiers in Adelaide, the recent deals by government occupiers during the last three months were a combination of new transactions and renewals.
In August 2016, Country Health SA (state government) renewed their lease for two floors in 22 King William Street, adding a part floor as expansion space in the process. The National Centre for Vocational Education Research (NCVER) leased two floors in 60 Light Square, which became vacant after People’s Choice Credit Union (PCCU) relocated to their newly completed building in 50 Flinders Street.
Another state government department leased a full floor in 60 Light Square in June. In addition, following the sale of the buildings in the State Administration Precinct portfolio in September, the government occupied buildings are subject to new 12-year leases.
In June 2016, UK firm, Babcock International, together with the state government, announced Babcock would be moving their regional headquarters to Adelaide.
The state government has provided a multi-million dollar incentive to the firm for the relocation, including incentive payment towards the fitout of their new Adelaide office, which will be based in 70 Franklin Street.
Botten Levinson Lawyers has moved into level one of the old Darling Building on Franklin Street, following its refurbishment by a syndicate group led by Williams Burton Leopardi.
Williams Burton Leopardi relocated to the top floor in May. The syndicate purchased the building in 2013 for $1.05 million and undertook a complete refurbishment.
Other deals of note, include Bank of China leasing part level 8 in 1 King William Street plus the ground floor for their retail outlet.
Fyfe has relocated one of their Core located offices on Flinders Street to Viterra’s old building at 124-130 South Terrace in the Frame.
Hudson has relocated from 75 Hindmarsh Square to 101 Pirie Street, rationalising about 500 square metres in the move.
Morgan Stanley has also relocated, moving from 115 Grenfell Street to 2 King William Street recently, although only reduced space requirements by about 100 square metres.
As at September 2016, net face rents in Adelaide CBD typically range from $395 to $460 per square metre per annum for premium grade, $330 to $410 per square metre per annum for A Grade and $265 to $335 per square metre per annum for B Grade.
In Adelaide’s fringe, as at September 2016, net face rents typically range from $330 to $355 per square metre per annum for A Grade and $270 to $300 per square metre for B Grade.
Although incentives had shown signs of stabilising earlier this year, over the last quarter they have increased to above 26% or in some cases, higher, in CBD prime space, resulting in a slight drop in net effective rents over the last three months.
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Office leasing activity increases in Adelaide: Savills

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Adelaide is at the bottom of the market for the unit market, according to Herron Todd White’s latest market report.
The property advisory firm says that new properties are almost never sold at prices that exceeds their potential resale value.
Despite this demands for new units are fair with an increasing trend in new unit construction with volume of unit sales remain steady.
<a href="/images/2016/11/04/Capital%20city%20units.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/04/Capital%20city%20units.jpg" alt="">
The rental vacancy situation is a balanced market with a steady rental vacancy trend.
Other cities with a fair demand for new units include Sydney, Hobart and Canberra.
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Adelaide at bottom of the unit market with steady rental vacancy trend: HTW

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The success of Adelaide’s tallest residential building, Vue on King William, has continued with the development scooping the 2016 UDIA SA High Density Housing Award.
It’s the second UDIA SA High Density Housing Award for Starfish Developments, which also won the award last year for its Avenue at St Clair project.
<img src="/images/2016/11/07/ASBCREATIVE-THE_VUE_HI_001.jpg" alt="">
The 89 metre, 28 storey Vue on King William, which opened in June, was a joint venture between Adelaide-based Starfish Developments and Melbourne-based Asian Pacific Group.
The $100 million, 210 apartment development was almost fully sold within a couple of months of going to market in May 2014, with construction starting just four months later.
The building took just 20 months from ground breaking to completion. Construction of the project created 200 jobs.
Vue has brought a new style of residential architecture to Adelaide with its six level podium, recessed Level 7 roof top garden, pool deck and recreation centre and 22 level glass frontage.
<img src="/images/2016/11/07/ASBCREATIVE-THE_VUE_HI_006.jpg" alt="">
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Adelaide’s tallest residential building wins more design awards

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<img src="/images/2016/10/28/Greaton%20Logo%20RGB.jpg" alt="" width="467" height="141">
SPONSORED POST
West Franklin, which is being touted as the jewel in Adelaide’s crown is fast becoming the number one choice for investors. 
Located in the heart of Adelaide’s City West area on the corner of Franklin, Elizabeth and Morphett Streets, the lifestyle precinct offers significant opportunities for investors.
<img src="/images/2016/10/28/g2.jpg" alt="">
West Franklin is one of the largest urban regeneration projects ever undertaken in the Adelaide CBD and occupies a 5,000 sqm area.
Nicho Teng, Managing Director of Greaton, developer of the project, “West Franklin will make a bold statement on Adelaide’s skyline. We purchased this site to create an iconic destination and will deliver that promise.
<img src="/images/2016/10/28/g5.jpg" alt="">
“West Franklin will become a new and exciting lifestyle destination that epitomizes luxurious city living. Its unique attributes are fast attracting local, interstate and overseas investors. Over the past three months, enquiries from investors have trebled especially from Sydney and Melbourne markets.”
<img src="/images/2016/10/28/g4.jpg" alt="">
He added, “Substantial increases in the local population are predicted over the next decade, with new infrastructure and public amenities planned that co-inside with the completion of stage one in 2018 (280 apartments). Undoubtedly this will add to the desirability of the development and location of West Franklin for investors, making it one of Adelaide’s most sought after residential destinations.”
<img src="/images/2016/10/28/g3.jpg" alt="">
The Adelaide central business district’s population is tipped to reach 30,00 by 2020, which is more than double what it was in 2001.
Metropolitan Adelaide has registered over $45.6 billion worth of investment into major projects according to Urbis Residential Research Report (May 2016). Key infrastructure projects include the $1 billion Adelaide Airport redevelopment, $350 million Sky City Casino expansion and Convention Centre expansion.
In 2015, Adelaide was rated the 5th most liveable city in the world, achieving top marks in education and healthcare, as highlighted by the Economist Intelligence Unit 2015.
<img src="/images/2016/10/28/g6.jpg" alt="">
Mr Teng also notes, that Residex statistics from March 2016 show the median value for an apartment in Adelaide was $317,500, rental yields average 5.1% and the median rent is $310 per week.
“Investors have recognised that Adelaide’s rental yields are much higher when compared to Sydney and Melbourne, apartment prices are affordable, employment prospects are strong, the lifestyle is clean and green and an excellent transport network is in place.”
<img src="/images/2016/10/28/g7.jpg" alt="">
The meticulously designed West Franklin community will comprise 560 luxurious apartments and penthouses spread across four iconic towers. Luxury, lifestyle and liveability capture the essence of this masterplanned community.
Studios are priced from $255,000 to $345,800, 1 bedroom from $266,200 to $448,800, 2 bedrooms from $425,000 to $640,000, and 3 bedrooms from $491,000 to $1,455,000. Extensive balconies provide the perfect environment for outdoor entertaining enhanced by picturesque views of Adelaide’s history and beaches.
<img src="/images/2016/10/28/g8.jpg" alt="">
West Franklin is within walking distance to major food precincts, the theatre district, universities and the CBD. The Central Market, Her Majesty’s Theatre and China Town are 500 metres away, while Waymouth Street, Leigh Street, Hindly Street and Curry Street restaurants, bars and cafes are within 750 metres.
Several hospitals and universities including New Royal Adelaide Hospital, University of South Australia, University of Adelaide and Royal Adelaide Hospital are all within 2.4 kilometres from the site.
Adelaide Airport is also within 6.9 kilometres from West Franklin, the picturesque Glenelg Beach is a short 10.4 kilometres and the famous Adelaide Hills wine district is a 7.8 kilometres commute.
<img src="/images/2016/10/28/WestFranklin_Logo_CMYK.jpeg" alt="">
An onsite display and sales office is open Monday to Friday 10 – 6pm, Saturday 10 – 4pm and Sunday 12- 4pm.  
For further information or to register your interest visit <a href="https://www.westfranklin.com.au" target="_blank">www.westfranklin.com.au</a> or call 1300 992 166. 
 
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The jewel in Adelaide’s crown is attracting investors

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Retail space is for sale for $799,000 in The Boehm development in Adelaide's CBD.
It is a premium ground floor retail/office space of 50 square metres.
<a href="https://www.realcommercial.com.au/property-retail-sa-adelaide-502142994" target="_blank">Lot 02, 150 Wright Street</a> is situated in the front north-west corner with modern floor to ceiling glass, dual access and stunning views that overlook the lush green park.
The new residential building markets itself as having state of the art facilities.
The Boehm offering is through Lin Andrews Real Estate agent Karen Andrews.
<img src="/images/2016/10/17/Lot%2002.jpg" alt="">
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Retail space on offer in Adelaide's The Boehm development

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The median house price in Adelaide has shown steady growth since 2012/13 as lower interest rates and prices at a relatively low base resulted in a period of improved affordability, according to QBE's latest housing report.
Employment drivers at the time, in the form of public infrastructure projects, also spurred migration inflows propping up underlying demand. The median house prices at June 2016 was $461,000, up 3.2% on a year earlier.
Inner Adelaide median house prices have grown 26.7% on a year earlier. However, the inner region covers a small sample area and is a tightly held market with low transactional activity increasing volatility in the median price measurement. The Middle and Outer ring medians have shown much more moderate growth at 2.7% and 2.1% respectively.
<a href="/images/2016/10/14/Table%209.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/14/Table%209.jpg" alt="">
The South Australian economy is forecast to face some significant economic headwinds with the manufacturing sector suffering from the relatively high Australian dollar compared to lower cost competitors overseas. Several public engineering construction projects have also been completed such as the Noarlunga Line Electrification, the South Road Superway and the Southern Expressway Duplication.
With the completion of these projects, public investment will decline significantly with few projects to fill the void in employment growth. Additionally, the scheduled closure of the Holden manufacturing plant in Elizabeth in 2017 is expected to further drag on the economy.
Some job creation should come from increased ship and submarine building, but with few other large employment drivers, the state economy is expected to struggle for growth.
Dwelling construction activity has also peaked in 2015/16 as price growth and low borrowing costs has driven commencements. Underlying demand has not kept pace and an excess in dwellings is forecast to have emerged in Adelaide in 2015/16.
This surplus is expected to accelerate over the forecast period as underlying demand remains weak brought on by softening economic conditions. This is expected to put pressure on vacancy rates, already climbing above the balanced rate in June 2016 at 3.3%.
<a href="/images/2016/10/14/Chart%2026.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/14/Chart%2026.jpg" alt="">
As rental yields fall and competition increases for tenants, investor demand is expected to contract leading to limited house price growth.
The low interest rate environment with potential cuts over the next year, is expected to result in affordability improving. The ratio of mortgage repayments on a median priced house is forecast to be around 21%, which is the lower end of its range over the past 20 years.
This will prevent major falls in house prices and median house price growth of 0.9% is expected in 2017/18, before the rising surplus and slowing economic activity result in a 2.2% decline in prices in 2017/18.
A total decline of 1.3% is expected for median house prices over the forecast period, taking the median house price to $455,000 at June 2019.
Compared with the east coast capital cities, Adelaide does not experience the same level of new unit or apartment development activity and the unit market is consequently forecast to move in line with the forecast for house prices. However, much like the other state capitals, investor purchasers are more prevalent in the unit market.
Tighter restrictions on investor lending is seeing a decline in investor demand and as a result median unit prices are forecast to remain relatively flat over the three years to 2019, declining an aggregate 0.6% over this period to $340,000 at June 2019.
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Adelaide economy to struggle but major house price falls will be prevented: QBE Housing Outlook

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In the $500,000 to $800,000 Adelaide price range, there is activity in city fringe suburbs as always, according to Herron Todd White’s (HTW) latest monthly market report.
The property advisory firm says that first home buyers who can purchase a quality property under $500,000 within proximity of the CBD are generally in a happy situation.
The buyer demographic is generally home buyers and those upgrading. Older first home buyers are also active in this market segment.
There is increased interest in properties under $500,000 in suburbs close to the CBD. Closer proximity to the CBD in this price bracket generally results in greater interest.
In Adelaide, a purchase price of between $500,000 and $800,000 provides buyers with a myriad of options. Within five kilometres of the CBD, this property will typically be detached and may be renovated. Outside of this radius, buyers can purchase a detached dwelling on a good sized allotment which has likely been renovated.
One example would be a three bedroom home at <a href="https://www.realestate.com.au/property-house-sa-adelaide-123806594" target="_blank">71 Whitmore Square</a> (pictured above) that is for sale for $580,000.
This price range is generally affordable for purchasers with a dual income. It’s becoming increasingly difficult for purchasers with a single income to enter the market at this price point without a substantial deposit to cover stamp duty in particular.
"Properties in the outer northern suburbs between $200,000 and $400,000 are probably slowest at the moment with the predominant buyer in this area being investors with larger deposits who are more risk averse in light of economic uncertainty within the region," the report advised.
There is decreased first home buyer activity as well as decreased investor interest given economic uncertainty with the pending closure of the Holden manufacturing plant at Elizabeth.
The level of market activity at different price points does depend on location and generally proximity to the city and facilities. Affordable suburbs adjacent to popular and more expensive areas are also experiencing increasing market activity as buyers seek affordability.
On the other end of the spectrum, northern suburbs such as Andrews Farm have experienced somewhat stagnant market conditions in the past few years. This is an outer northern suburb situated approximately 32 kilometres from the Adelaide CBD. Increasing development of new housing in this area is causing demand for older dwellings to drop.
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City fringe suburbs in Adelaide continue to be preferred investment area: HTW

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Adelaide now has the No.1 growth market among the eight state and territory capital cities.
While the former boom markets in Sydney and Melbourne have faded dramatically in 2016 (notwithstanding the dodgy data on auction clearance rates, which flatter to deceive), and Brisbane has lost some of its momentum, Adelaide has maintained its very steady performance.
My latest survey of sales activity for The Price Predictor Index shows that Adelaide leads the capital cities on the number of growth markets for the second consecutive survey. It has more suburbs with rising sales activity than all other cities, ahead of Melbourne and Brisbane. Adelaide is attracting growing attention from investors for its affordability and the value for money it offers compared to the bigger cities. 
Using sales volumes as the yardstick, there are now very few growth markets left in Sydney. And my latest survey adds another element to the downturn story: there are now suburbs I have identified as “danger markets”, because of the pattern of sharp decline in the number of sales. These are primarily apartment markets, where sales levels are dropping at a time of increasing supply. This represents an obvious danger for buyers.
Brisbane has had elevated sales activity for the past 2-3 years, without delivering the level of overall price growth seen in Sydney and Melbourne. But now, like the two biggest cities, Brisbane markets are running out of steam. In the past three quarterly surveys, the number of suburbs with growing sales activity has decreased markedly. This replicates the pattern seen earlier in Sydney.
At the same time, some of the inner-city apartment suburbs are now classified as “danger markets” – sales rates are dropping at a time of increasing new supply. Investors need to be careful also about Brisbane Northside suburban markets, as vacancies are high in some suburbs.
But Adelaide continues to thrive. It started 2016 in solid fashion and has kept going.
Unlike the patterns we have seen recently in Sydney, Melbourne and Brisbane, where individual precincts have stood out as the market leaders, Adelaide has a broad geographical spread of LGAs with good numbers of growth markets. There are five municipalities which each have between four and six suburbs with rising sales trajectories likely to lead to price growth.
The No.1 municipality is the Port Adelaide Enfield LGA. This is one of the largest municipalities in Adelaide, covering the inner north and north-west of the city. Six suburbs in this LGA have rising markets, mostly suburbs with median house prices in the range from $390,000 to $520,000, which in Adelaide tends towards “middle market”. They include Broadview, Northgate, Clearview and Hillcrest.
Close behind is the downmarket Salisbury LGA in the far north of metropolitan Adelaide – it has five rising suburbs and seven with steady consistent sales rates. The suburb of Parafield Gardens has lifted sales from 53 to 63 to 75 in the past three quarters.
The City of Charles Sturt remains one of Adelaide’s solid middle-market areas with plenty of sales activity. The Charles Sturt LGA includes bayside suburbs west of the Adelaide CBD and has rising markets such as Flinders Park (median house price $530,000), Grange ($680,000), Henley Beach South ($735,000) and Seaton ($470,000).
The Marion and Onkaparinga municipalities both have four suburbs with rising sales activity. The Onkaparinga LGA in the far south of the Greater Adelaide area has been prominent in most of our quarterly surveys over the past two years and is one of South Australia’s leading precincts for population growth.
I’ve always regarded the Adelaide Hills as one of Australia’s most appealing Hill Change lifestyle areas. But while the Adelaide market generally has been rising for the past two years, the Hills haven’t stood out in terms of sales activity until 2016.
It’s taken time for the growth to ripple out to the metropolitan fringes. But now a number of the suburbs in the Mount Barker and Adelaide Hills LGAs are featuring with strong sales momentum, headed by the suburb of Mount Barker where sales rates have risen from around 70 per quarter to above 100.
Adelaide has always suffered from a lingering reputation as a place that lacks serious population growth or economic oomph. But it has more going for it than people realise – including a good level of spending on infrastructure – and above all else offers great value-for-money in its real estate, relative to the bigger cities.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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