Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

[smartcode_project_cta:default project_id=28384]

North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

[smartcode_project:default project_id=143337 project_image_fid=374760]

Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

Commercial Property

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SPONSORED POST
For anyone considering investing in commercial real estate, one of the first questions you will want to ask is: what return on investment will I get from this property or, in other words, what is its yield?
Yield is an important way of measuring the future income on an investment. It is particularly important in commercial real estate as capital growth rates are not usually as high as the residential market. So the return you get now and in the future is a key factor in working out whether to invest.
So, how do you work out yield?
Yield is calculated as a percentage, based on the property’s cost or market value, annual income and running costs. It does not take into account how much the property increases in value over time (ie the capital growth).
When calculating yield, it’s important to know if you are calculating ‘gross yield’ or ‘net yield’. Gross yield is everything before expenses, whereas net yield takes into account running expenses such as management fees, maintenance costs, stamp duty and vacancy costs.
Yield definition
Yield calculations are worked out by dividing the annual rental income on a property by how much it cost to buy. For example:
Gross yield = annual rental income (weekly rental x 52) / property value x 100.
So if you buy a retail property for $750,000 and rent it out for $1,500 a week ($78,000 annually) the annual return on your investment, or your yield, will be 10.4 percent. This is an example of gross yield, where the running expenses of owning a retail business have not been taken into account.
Commercial properties typically return a much higher yield than residential, generating yields upwards of 7 percent compared to yields of 4-5 percent in residential.
What drives yield?
Yield, business confidence and occupancy rates are the top three drivers of the commercial real estate market.
All three are affected by consumer confidence, politics and the economy. Commercial property yields are more susceptible to market conditions than residential properties as people will always need somewhere to live, whereas business can and do go out of business. This risk is reflected in the higher yields that commercial property attract. 
The demand for property is one of the key drivers of yield. When demand is high, the cost of buying an investment property increases. The more you pay, the less yield you get (unless rental income increases in proportion to the purchase price). When yields are decreasing this is often referred to as ‘hardening yields’.
The opposite is also true. When demand for property is down, prices fall and yields can increase. When the rent-to-value ratio increases it is referred to as ‘softening yields’.
It is important to note that yields are a measurement of expected return on your investment and not a guarantee. Potential investors need to take into account all the other factors, such as likelihood of finding and retaining a good, long-term tenant, maintenance and infrastructure costs, suitability and location of a property and all the other factors that can impact on your ability to achieve your expected yield.
For more commercial news and updates, please visit <a href="https://www.realcommercial.com.au/blog/" target="_blank">https://www.realcommercial.com.au/blog/</a>
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jonathanchancellor-7SQnKwU6yx

What you need to know about commercial real estate and yield

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Frasers Property Australia have won the National Signatory of the Year category at the CitySwitch Green Office awards for renovations to their St Kilda office to promote staff health and wellbeing.
Frasers Property Australia upped their NABERS rating from four to five stars. HESTA was awarded a highly commended.
The National New Signatory of the Year went to KPMG with a 72 percent waste recovery rate  and reducing paper by more than 8 million sheets.
NSW winners included the State Library of NSW (Signatory of the Year over 2000 square metres), Architectus (Signatory of the Year under 2000 square metres), Norman Disney &amp; Young and Westpac (Partnership of the Year) and Marlin Communications (NSW Signatory of the Year).
Lord Mayor Clover Moore said CitySwitch has come a long way from the small program offered by three Sydney councils in 2005.
"It has spread across the country and is now receiving global recognition for the way it has engaged businesses of all sizes to make a difference on carbon emissions,” she said.
“It’s a heartening sign that Australian business is serious about its environmental impacts, and also that it has been quick to grasp the business benefits of a green economy. Since 2011, CitySwitch members across Australia have slashed emissions while saving a combined $34 million in electricity bills.
“CitySwitch National Signatory of the Year, Frasers, achieved a 4.5 star NABERS Indoor Environment Quality rating with improvements to lighting, air quality, natural ventilation and maximising use of natural light.
“The fact that CitySwitch is in line to receive a major international accolade is a credit to the businesses that have enthusiastically jumped on board this great initiative.
“I congratulate all finalists and winners and thank them for being a part of the CitySwitch Green Office program.”
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j.ballantyne1990-6AQqhLzZaK

Best and brightest offices make sustainable switch

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The office property market in Melbourne, Sydney and the Gold Coast is rising with the Brisbane market bottoming out, according to the December office Property Clock from Herron Todd White.
<a href="/images/2016/12/06/Screen%20Shot%202016-12-06%20at%2012.47.16%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/06/Screen%20Shot%202016-12-06%20at%2012.47.16%20PM.png" alt="">
 
HTW said Sydney's vacancy rate at June 2016 was 5.6 percent and this is predicted to fall further by the end of 2017 and into 2018 and due the strong tenant market, the only national CBD office market with a total vacancy below 7 percent. The Melbourne office market is continuing to strengthen.
"By June 2016, the CBD office market had recorded a positive net absorption of approximately 148,000 square metres, due in part to the withdrawal of buildings acquired for the new metro lines and those being converted to residential," HTW said.
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"Melbourne’s offce market has continued to strengthen over 2016 with falling vacancy rates and tightening yields. 
"According to the Property Council of Australia, Melbourne’s CBD of ce market has observed a decline in vacancy rates over the rst half of 2016 from 7.8 percent in January to 7 percent in July, underpinned by positive demand and withdrawal of older office buildings. 
"Melbourne remains the second lowest vacancy rate throughout all capital cities and is significantly lower than the national average of 10.4 percent.
"Brisbane's rolling refurbishment programs will allow the properties to be repositioned within the market and capitalise on the next round of anticipated major tenant moves later in the decade. We believe commercial development heading into 2017 will reduce significantly with only two commercial development projects currently in progress. 
"As premium office accommodation has entered the market, we have seen a tightening in vacancy rates and rental incentives between premium grade buildings and older style, B grade accommodation.
"B grade vacancy rates were reported at 18.6 percent in July 2016. Prime vacancy rates increased from 8 percent in July 2015 to 22.1 percent in July 2016. It is believed that these vacancy rates will force further refurbishment or withdrawal of older stock."
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"Almost 22 percent of Perth’s CBD office space is sitting empty. That is a 2.2 percent increase over the past six months and a 4.5 percent increase from a year ago."
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Office property market in Melbourne, Sydney and Gold Coast rising: Herron Todd White

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Office, retail and industrial property returns have outpaced those from the stockmarket, according to a new report.
The average annual return on commercial property was 12.2 percent for the September 2016 quarter according to the Property Council/IPD Australia All Property Index, with the ASX 200 a total return of 7.58 percent.
Dr Anthony De Francesco, executive director of MSCI told the Australian Financial Review rising bond yields and some poorer performing property fundamentals could further ease the returns in commercial real estate.
"A key risk factor for the property sector is the prospect of a narrowing cap rate spread to the bond rate if we see tightening interest rate cycle in the near term," he said.
"Another risk factor is the generally soft space market fundamentals which have not translated into strong net operating income growth."
"A key driver of capital return had come been the firming in capitalisation rates.
"This is continuing, although signs are emerging of cap rates starting to stabilise and even soften across some sub-sector markets.
"We've seen steep cap rate compression over the last few years, which has delivered very firm cap rates across all property sectors. In fact, pricing within the property market is now far more aggressive than at the peak of the market before the GFC hit.
"Back then, the overall cap rate for commercial property stood above 6.3 percent. Now it sits at six percent."
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Commercial property v shares: demand to remain strong in 2017

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A South Yarra retail property has been listed for auction.
Located at <a href="https://www.realcommercial.com.au/property-retail-vic-south+yarra-502178310" target="_blank">403 Chapel Street</a>, it has three street frontages with the opportunity for future cut up potential.
It has a four year net lease to a highly secure tenant with a net annual income of $208,000 with all outgoings paid by the tenant and a 4% fixed annual increase.
Surrounding the property are a number of residential developments, set to provide higher density, increased foot traffic and further demand for retailers.
The auction is on December 9 through CBRE agents Rorey James, Nic Hage and Justin Dowers.
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Chapel Street, South Yarra retail property for auction

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Sydney's Clarence Street is in high demand with the former AMPCo Housing building refurbishment nearing completion.
The five storey secure office building at <a href="https://www.realcommercial.com.au/property-offices-nsw-sydney-501938454" target="_blank">277 Clarence Street</a> provides whole floor tenancies from around 165 sqm.
Ray White Commercial South Sydney agent John Skufris is marketing the property.
"There are now just two whole floors remaining for lease at 277 Clarence Street offering good natural light from two sides and polished original timber floors throughout from $131,670 per annum," he said.
Laing &amp; Simmons CBD/Surry Hills are one of the latest to relocate to the building.
Principal Dean Applegate said that it was a good value opportunity.
"With current appetite for new super prime commercial floor space in the city, there has been some good value opportunities emerge such as 277 Clarence Street," Dean Applegate said.
"Accordingly, we have managed to secure the entire ground floor tenancy and injected a large amount of capital into the fit out which is fresh and also sympathetic to the character of the building.
"We have created a comfortable open plan environment from which we can provide the best possible level of service."
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Clarence Street suites in demand

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A Darlinghurst investment property occupying one of the most prominent corners in Sydney is for sale.
Currently leased to Coco Cubano on the corner of Oxford and Flinders Street, <a href="https://www.propertyobserver.com.au/https://search.knightfrank.com.au/3256204" target="_blank">191 Oxford Street </a>comprises 661 sqm and features indoor and outdoor space.
It comes with a staggered lease expiry profile although it has multiple value-add opportunities available.
Located on the gateway to the eastern suburbs, it is estimated eight million cars pass the property per year.
Knight Frank agents Jonathan Vaughan and Dominic Ong have the listing.
Oldtimers will recall it as part of the collapsed property empire of the late Theo Morris, who sold it for $3,725,000 in 1993.
He had owned it for over two decades, having paid $125,000 in 1971.
It then traded for $7.75 million in 2002 before selling to the current owners for $11.58 million in 2013.
Expressions of interest closed two weeks ago and no public price guidance has been given.
 
  
 
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Darlinghurst Eastern Suburbs gateway boutique investment for sale

<html><body>
SPONSORED POST
For anyone considering investing in commercial real estate, one of the first questions you will want to ask is: what return on investment will I get from this property or, in other words, what is its yield?
Yield is an important way of measuring the future income on an investment. It is particularly important in commercial real estate as capital growth rates are not usually as high as the residential market. So the return you get now and in the future is a key factor in working out whether to invest.
So, how do you work out yield?
Yield is calculated as a percentage, based on the property’s cost or market value, annual income and running costs. It does not take into account how much the property increases in value over time (ie the capital growth).
When calculating yield, it’s important to know if you are calculating ‘gross yield’ or ‘ net yield’. Gross yield is everything before expenses, whereas net yield takes into account running expenses such as management fees, maintenance costs, stamp duty and vacancy costs.
Yield definition
Yield calculations are worked out by dividing the annual rental income on a property by how much it cost to buy. For example:
Gross yield = annual rental income (weekly rental x 52) / property value x 100.
So if you buy a retail property for $750,000 and rent it out for $1,500 a week ($78,000 annually) the annual return on your investment, or your yield, will be 10.4 percent. This is an example of gross yield, where the running expenses of owning a retail business have not been taken into account.
Commercial properties typically return a much higher yield than residential, generating yields upwards of 7 percent compared to yields of 4-5 percent in residential.
What drives yield?
Yield, business confidence and occupancy rates are the top three drivers of the commercial real estate market.
All three are affected by consumer confidence, politics and the economy. Commercial property yields are more susceptible to market conditions than residential properties as people will always need somewhere to live, whereas business can and do go out of business. This risk is reflected in the higher yields that commercial property attract.
The demand for property is one of the key drivers of yield. When demand is high, the cost of buying an investment property increases. The more you pay, the less yield you get (unless rental income increases in proportion to the purchase price). When yields are decreasing this is often referred to as ‘hardening yields’.
The opposite is also true. When demand for property is down, prices fall and yields can increase. When the rent-to-value ratio increases it is referred to as ‘softening yields’.
It is important to note that yields are a measurement of expected return on your investment and not a guarantee. Potential investors need to take into account all the other factors, such as likelihood of finding and retaining a good, long-term tenant, maintenance and infrastructure costs, suitability and location of a property and all the other factors that can impact on your ability to achieve your expected yield.
For more information, <a href="https://bs.serving-sys.com/BurstingPipe/adServer.bs?cn=tf&amp;c=20&amp;mc=click&amp;pli=18755997&amp;PluID=0&amp;ord=%5Btimestamp%5D" target="_blank">click here</a>.
ABOUT REALCOMMERCIAL.COM.AU: realcommercial.com.au is the leading website in Australia for commercial property, attracting an average of 1.7 million visitors a month (Source: Nielsen Online Market Intelligence, Total Traffic, average calculation May-July 2015, includes app traffic from Omniture Site Catalyst as Nielsen doesn’t report on app). It is owned and operated by realestate.com.au Pty Ltd, a subsidiary of ASX-listed REA Group Limited ACN 068 349 066 (ASX:REA).
 
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Yield: what is it & what drives it in commercial real estate?

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SPONSORED POST
Zoning is a key ingredient to your commercial property and business success.
There is no point finding the perfect location if you cannot legally run your business there or if there are restrictions on how you can operate.
What is a zone?
Across Australia, all land has a designated zone and this tells you how the land within that certain area can be used.
There are generally four zones: residential, commercial, industrial and agricultural. Within these there are often sub-categories, such as those defining what type of commercial and industrial business can be carried out.
The laws around zoning are established by state and territory governments and this means they differ around the nation.
What role does council play in zoning?
It’s up to local councils to decide what zoning is appropriate in their area and to ensure all businesses and properties comply with their regulations.
Anyone buying commercial property, or planning to change or modify their commercial property, should contact their local council to see what they are able to do and what plans and permits they will need.
Zoning matters when…
Business Victoria also suggests checking whether any overlays apply to your property or whether there are any heritage listings that might restrict what you can do.
It says that might be necessary for commercial property if you want to:
* Set up a store, a food business or other type of business.
* Change the look of the existing shop front.
* Put advertising signs on the building.
* Change the internal fit-out of the building.
* Put outdoor seating or heaters on a footpath.
WBP Property Commercial Valuation Manager Justin Thomas says zoning and planning issues dictate use and development, and hence value.
 “The existing use may not be allowable under the zoning and could possibly be prohibited,” Thomas says.
“Purchasers must also have regard to planning overlays and investigate future planning proposals in their purchasing decision.”
Thomas says it’s also important to consider the zoning around the immediate area of a property you are thinking about buying.
“Large areas of former industrial land in inner city areas have been rezoned to allow for a more flexible use,” he says.
For more information, <a href="https://bs.serving-sys.com/BurstingPipe/adServer.bs?cn=tf&amp;c=20&amp;mc=click&amp;pli=18755997&amp;PluID=0&amp;ord=%5Btimestamp%5D" target="_blank">click here</a>.
About realcommercial.com.au: realcommercial.com.au is the leading website in Australia for commercial property, attracting an average of 1.7 million visitors a month (Source: Nielsen Online Market Intelligence, Total Traffic, average calculation May-July 2015, includes app traffic from Omniture Site Catalyst as Nielsen doesn’t report on app). It is owned and operated by realestate.com.au Pty Ltd, a subsidiary of ASX-listed REA Group Limited ACN 068 349 066 (ASX:REA).
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Zoning: why it matters for commercial property

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A restaurant investment in the heart of Southbank is now for sale.
The property is located <a href="https://www.realcommercial.com.au/property-retail-vic-southbank-502141674" target="_blank">1G/ 133 City Road, Southbank</a>.
It is currently leased for seven years with options to extend it even further.
It has a building area of 190 sqm with extensive contemporary fitout.
The rental yield for this property is $85,000 per annum net with reviews of four percent annually. There is a security deposit of $21,353.15
The property is listed for November 23 auction through Ray White agent Brett Diston.
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