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

Joel Robinson

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

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

DEXUS Property Group

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DEXUS Wholesale Property Fund has exchanged conditional contracts to acquire Carillon City, a CBD retail mall, located in the core retail precinct of the Perth CBD.
The property has been acquired for $140 million, with settlement expected to occur in November 2016.
Carillon City is located with frontages to both the Hay Street and Murray Street malls combined with linkages to Forrest Chase, St Georges Terrace and Perth Railway Station.
The centre comprises 10,700 square metres of retail space across four floors, with 108 tenancies including Topshop Topman, Priceline and The Reject Shop.
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j.ballantyne1990-6AQqhLzZaK

DEXUS acquires Carillon City retail mall in Perth

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A concentration of growth in the NSW and Victorian economies and in service industries will continue to support occupier demand and outperformance in the Sydney and Melbourne property markets in FY17, according to Dexus Property Group's latest quarterly report.
Key assumptions affecting the near-term outlook include:
NSW and Victoria will solidly outperform other states based on population growth and infrastructure spending. Queensland is forecast to improve, while WA will continue to lag.
<a href="/images/2016/10/28/Figure%201.jpg" target="_blank">Click to enlarge</a>
<ul>
<li><img src="/images/2016/10/28/Figure%201.jpg" alt=""></li>
</ul>
Official cash rate to remain unchanged over the next 6 months with a bias to move lower in 2017.
Residential construction activity is expected to slow and could be a key risk to growth (FY18- FY19) if it slows more sharply than forecast.
<a href="/images/2016/10/28/Figure%202.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/28/Figure%202.jpg" alt="">
Employment growth is positive, but the rate of growth is slowing with a continued shift from full time to part time jobs.
Service sector activity (such as education, health, IT, tourism and business) will remain a growth driver for the economy. Growth will be higher for small to medium businesses than large businesses.
The property markets of Sydney and Melbourne are forecast to show positive occupier demand over the next 12 months with mixed demand elsewhere.
<a href="/images/2016/10/28/Table%201.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/28/Table%201.jpg" alt="">
Bond yields are expected to stablise at/near current levels and rise at a slower rate than in the US over the medium term, staying low by historical standards.
Property yields are expected to remain at low levels for a considerable time unless there is an external shock or disruption to capital flows.
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Population growth to help NSW and Victoria property outperform: Dexus

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Large retailers and transport and logistics occupiers are supporting industrial demand, taking advantage of the competitive pre-commitment market to improve and consolidate their supply chains, according to Dexus Property Group’s latest quarterly report.
Occupier demand varies widely between states with Sydney and Melbourne solid, Brisbane improving and Perth remaining weak.
The manufacture of core stock is a primary focus for many institutions, particularly in Sydney and Melbourne, due to the solid pre-lease demand in these markets and the strong values that can be achieved for fully leased buildings.
<a href="/images/2016/10/28/Figure%2015.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/28/Figure%2015.jpg" alt="">
The industrial supply pipeline will be solid in 2016, in line with the 10 year average, however 2017 is likely to be more subdued following a reduction in planned projects in Brisbane and Perth.
Consequently, rents are likely to remain relatively subdued and stable in the short term as the pre- commitment market remains competitive.
Land constrained markets are the best placed for rental growth in the future.
<a href="/images/2016/10/28/Figure%2016.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/28/Figure%2016.jpg" alt="">
The key themes for this quarter include:
<ul>
<li>Demand for assets with a long WALE remains strong, however prime investment stock is limited as owners hold income producing properties</li>
<li>The closure of the Ford plants in Geelong and Broadmeadows (VIC) could result in these large industrial sites being released to the market in the coming years after site remediation. Holden and Toyota are expected to close in 2017</li>
<li>The privatisation of Australian ports has continued with The Port of Melbourne sold on a 50 year lease to Lonsdale Consortium (consisting of QIC, Future Fund and Global Infrastructure Partners) for $9.7bn</li>
</ul>
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Industrial property support from large retailers and transport occupiers

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Commercial property transaction volumes rose in the September quarter, however they were well below the same period last year, according to Dexus Property Group's latest quarterly report.
Foreign investors were active, comprising 47 percent of activity.
Total transaction volumes for the September quarter increased to $7.2 billion, partially due to the industrial portfolio sale from Goodman to Blackstone, however volumes were down on the prior year due to a lack of prime assets for sale.
<a href="/images/2016/10/28/Figure%209.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/28/Figure%209.jpg" alt="">
Major sales included the David Jones Market Street Store for $360 million, with CBus Super and Scentre Group each acquiring a 50% share.
An ARA managed fund purchased the Southgate Complex in Melbourne ($439 million at 6.5% yield and reported IRR of 7.5%).
Charter Hall Prime Retail Fund purchased the sub-regional centre, Campbelltown Mall for $197 million on a yield of 6%.
With limited core CBD assets available for sale, there were a number of office assets purchased in metropolitan or fringe locations e.g. Toorak Road, Hawthorn, New South Head Road, Edgecliff and Coward Street, Mascot.
<a href="/images/2016/10/28/Figure%2010.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/28/Figure%2010.jpg" alt="">
Foreign investment activity increased this quarter, comprising the majority of larger acquisitions in the office and industrial sectors.
Domestically, Privates and A-REITS were the most active, with A-REIT activity largely concentrated in the retail sector including SCA acquiring a number of centres.
Investment yields continued to tighten over the past six months with prime assets in the Sydney and Melbourne CBDs trading below 5.5%, while Brisbane and Perth assets trading slightly higher.
Values continue to firm in most sectors and markets.
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Commercial volumes down year on year

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DEXUS Property has advised occupancy (by area) at Grosvenor Place, Sydney increased to 96 percent from 94.5 percent at 30 June 2016.
 
It also secured 2,981 square metres of leasing at 385 Bourke Street, Melbourne increasing occupancy to 97.9 percent from 94.5 percent.
 
The advisory was part of DEXUS Property Group updating the leasing status across its property portfolio.
 
It advised it had leased 54,734 square metres of office space across 78 transactions, with occupancy maintained at 96 percent.
 
It also leased a significant amount of industrial space in a three month period securing 158,811 square metres1 of industrial space across 47 transactions, with occupancy improving to 92.3 percent.
 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="142">
Key metrics
</td>
<td valign="top" width="142">
30 September 2016
</td>
<td valign="top" width="142">
30 June 2016
</td>
</tr>
<tr>
<td valign="top" width="142">
Occupancy by income
</td>
<td valign="top" width="142">
96.0%
</td>
<td valign="top" width="142">
96.3%
</td>
</tr>
<tr>
<td valign="top" width="142">
Occupancy by area
</td>
<td valign="top" width="142">
95.9%
</td>
<td valign="top" width="142">
96.3%
</td>
</tr>
<tr>
<td valign="top" width="142">
WALE by income
</td>
<td valign="top" width="142">
4.9 years
</td>
<td valign="top" width="142">
4.7 years
</td>
</tr>
<tr>
<td valign="top" width="142">
Average incentive
</td>
<td valign="top" width="142">
15.4%
</td>
<td valign="top" width="142">
17.7%
</td>
</tr>
</tbody></table>
Kevin George DEXUS Executive General Manager, Office &amp; Industrial said the strength of demand in the Sydney office market continued to flow through to the DEXUS portfolio during the quarter.
"We have seen our overall average incentives fall across the portfolio, driven by some properties which are in high demand and as a result have achieved solid growth in rents and reduced incentives at these properties.”
Notable activity for the quarter included:
<ul>
<li>Securing leasing commitments across 10,784 square metres of space at 30 The Bond, Sydney, after the surrender of office space previously occupied by Lend Lease – including securing a new lease with Roche across 4,418 square metres. Only 5,347 square metres remains to be leased at 30 The Bond</li>
<li>Securing three new leases with various tenants across 4,000 square metres at Waterfront Place, Brisbane</li>
<li>Renewing a lease with the South Australian State Government across 9,253 square metres at 11 Waymouth Street, Adelaide</li>
</ul>
Despite the surrender of lease by Lend Lease, occupancy (by income) only decreased slightly to 96.0 percent from 96.3 percent at 30 June 2016 across the total office portfolio, while the weighted average lease expiry (WALE) increased by 0.2 years to 4.9 years.
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Grosvenor Place, Sydney sitting at 96 percent full

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DEXUS Property Group (DEXUS) has posted a strong 2016 financial result.
Dexus are Australia's largest office landlord with 1.8 million sqm of office space under management.
They have grown their third party funds from $5.6 billion in FY12 to $11.2 billion.
“Four years ago we reset our strategy to focus our business on Australian office property and third party funds management," said DEXUS CEO Darren Steinberg.
"Over the past four years, we have improved our efficiency reducing our Management Expense Ratio from 67 basis points to 35 basis points.
"At the same time, we have continued to maintain a strong balance sheet, and with recent divestments this further strengthens our position.
“We have fostered a culture of innovation and continuous improvement, invested in our people to build their capabilities and enhanced our customers’ experience, delivering new products and services.
“We have expanded our development pipeline and identified trading opportunities, positioning the portfolio for future growth.
Darren said DEXUS are expecting to deliver a solid result in FY17 despite recent divestments.
"We expect underlying FFO per security to grow by 3.0-3.5 percent and distribution per security by 2.5-3.5 percent.”
DEXUS FY17 Highlights
Funds from Operations1 (FFO) of $610.8 million, up 12 percent on FY15
Adjusted Funds from Operations2 (AFFO) of $413.9 million, up 12 percent on FY15
Statutory net profit of $1,259.8 million, up 104 percent on FY15, driven primarily by revaluations
FFO per security of 63.1 cents and distribution per security of 43.51 cents, both up 6 percent on FY15
Return on Equity3 of 19.3 percent and an average of 12.2 percent over the past four years
Group Management Expense Ratio4 of 35bps, down 6bps from 41bps at FY15
Net tangible assets (NTA) per security of $7.53 at 30 June 2016, up 13 percent or 85 cents from 30 June 2015
Gearing5 of 30.7 percent8 
 
</div>
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Dexus Property Group post strong 2016 financial result

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It's been an eventful few weeks for Sydney-based DEXUS Property Group in its Melbourne sphere of operations. Whilst a number of big ticket items have grabbed the headlines, the real estate group has managed to secure all but final approval for one of suburban Melbourne's largest commercial developments.

City of Monash have green lighted DEXUS's plans to greatly expand their Axxess Corporate Park within Mount Waverley.

Lodged with Council during 2015, DEXUS proposed dual office buildings and an associated multi deck car park at 11-21 Gilby Road, Mount Waverley. Designed by Gray Puksand, the development would carry a development cost of $61 million and encompass a commercial NLA of 19,950sqm.

This would position the development as one of suburban Melbourne's largest pending commercial developments.

Supplementing the commercial space is 1,260sqm of retail space, communal landscaped amenities and a massive 1,009 car parking spaces. Currently listed as Planning Permit to Issue, final approval looks to be a formality.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image38_4.jpg" rel="gallery-all" title="Elevations of the approved office buildings. Planning image: Gray Puksand"><img alt="" class="image-article-full-width-580px" height="238" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image38_4.jpg?itok=ZYtfm6Kq" title="Elevations of the approved office buildings. Planning image: Gray Puksand" width="580"></a>

<figcaption>Elevations of the approved office buildings. Planning image: Gray Puksand</figcaption></figure>It was <a href="http://www.theaustralian.com.au/business/companies/dexus-offloads-melbournes-southgate-complex-for-578m/news-story/349a19743a8d46fa21a6d32a73759641">reported over the weekend that DEXUS Property Group has sold the Southgate Complex</a> for $578 million. This still leaves the outfit with a strong asset sheet across inner Melbourne, including properties such as 8 Nicholson Street, 180 Lonsdale Street within QV and 360 Collins Street.

Listed on the Apartments.com.au Project Database are two substantial commercial developments under the DEXUS banner with approval, and which have yet to be acted upon. 385 Bourke Street is a Grimshaw Architects-designed expansion seeing additional commercial NLA of 24,000sqm added whilst Flinders Gate at 172 Flinders Street is subject to a scheme with an additional 20,000sqm in play.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image35_6.jpg" rel="gallery-all" title="Future CBD commercial developments under the DEXUS banner"><img alt="" class="image-article-full-width-580px" height="265" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image35_6.jpg?itok=qJtWWBgf" title="Future CBD commercial developments under the DEXUS banner" width="580"></a>

<figcaption>Future CBD commercial developments under the DEXUS banner</figcaption></figure>Approval for Gilby Road follows on from the July approval for DEXUS' sole residential project in Melbourne located at 32-44 Flinders Street.

After the best part of two years at planning, the project has finally been given the green light to replace a 539 bay car park built over 10 levels. Constructed during 1998, the car park structure is now prime land which holds more value as a development asset.

SJB Architects have designed the project to contain near on 500 dwellings over two buildings.

With the Flinders Street car park asset now repositioned, DEXUS Property Group will choose between developing or onselling the site with a permit in place.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image40_5.jpg" rel="gallery-all" title="Initial and abbreviated versions of 32-44 Flinders Street"><img alt="" class="image-article-full-width-580px" height="306" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image40_5.jpg?itok=9cFHeJkd" title="Initial and abbreviated versions of 32-44 Flinders Street" width="580"></a>

<figcaption>Initial and abbreviated versions of 32-44 Flinders Street</figcaption></figure>
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silvermb

Dexus doubles up with approval for a substantial commercial development

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DEXUS Property Group today announced the resignation of its chief operating officer, Craig Mitchell, who is leaving to become the chief executive officer of Grocon Pty Ltd.
Last month Craig Mitchell was suggested as a contender for the Charter Hall Group chief investment officer gig. 
Sources said Mitchell was keen to make his name away from his boss, the well-regarded Darren Steinberg. 
Carolyn Viney, one of the highest ranking women in the property industry, announced her decision to step down this June.
Mitchell was considered for GPT Group's chief executive officer role but missed out to Bob Johnston.
Mitchell is chief operating officer at DEXUS and an executive director of DEXUS Funds Management having more than 25 years of financial management and accounting experience, with more than two decades specialising in the property industry.
Prior to DEXUS, Mitchell held positions with Stockland Group and Westfield.
Darren Steinberg, DEXUS CEO thanked Craig for his significant contribution to the Group over more than eight years.
"He leaves DEXUS in a strong position and we wish him all the best in his new leadership role.” Craig joined the Group as Chief Financial Officer (CFO) in September 2007 and as a member of the Executive General Management team has overseen various functions including the management of the third party funds management platform and retail business.
"Craig was appointed to the Board as an Executive Director in February 2013.
Richard Sheppard, Chair of DEXUS said: “On behalf of the Board and the team at DEXUS we extend our thanks and gratitude to Craig and appreciate his dedication and overall contribution to the Group.” Craig‟s existing responsibilities in the short term will be assumed by members of the Executive General Management team.
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jchancellor-FAypfDUnLy

Craig Mitchell quits DEXUS for Grocon

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The Australian Shareholders’ Association has weighed in on the battle for the $2.5 billion Investa Office Fund, ahead of a vote on Friday on a merger proposal by Dexus Property Group, reported The Australian.
The association has criticised the issue of misleading documents by the owner of IOF’s manager in the lead-up to the meeting.
The Takeovers Panel on Friday ruled the documents sent out by the manager opposing the merger, which is favoured by IOF’s independent directors, were unclear, misleading and incomplete and ordered them to be reissued, as well as the removal of an alternative proxy form, said the report.
“It is disturbing that retail unitholders have been sent inadequate information, including a misleading proxy form, and just two days before proxies close will receive more information for them to consider," Diana D’Ambra, chairman of ASA, was quoted as saying by the newspaper.
“We urge IOF retail unitholders to ensure they express their views by voting.”
Fresh disclosures by Investa managing director and chief executive, Jonathan Callaghan, noted a declaration of unacceptable circumstances and orders made by the panel.
The consequences of a loss of IOF’s management, including losing close to $20 million of fees annually, if the Dexus proposal goes ahead, have now been disclosed.
The Dexus proposal still faces a hurdle.
The panel has not prevented Morgan Stanley Real Estate from voting its 8.9 per cent stake in IOF, most likely against the merger.
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<div>On Monday morning, DEXUS Funds Management responded to the Takeovers Panel declaration of unacceptable circumstances in relation to the affairs of Investa Office Fund.</div>
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The Panel's declaration is in response to an application to the Panel made by DEXUS RE on March 21, 2016.
"The Panel‟s declaration of unacceptable circumstances in relation to the matters described vindicates the action taken by DEXUS.
"We note the Panel decided not to interfere with the voting rights attached to IOF units with regard to the Morgan Stanley Real Estate Investing entities.
"DEXUS RE encourages all IOF Unitholders to express their opinion on the DEXUS Proposal at the forthcoming meeting of IOF Unitholders at 10.00am, Friday 15 April, 2016." 
Meanwhile, the chances of a consortium including Mirvac, Blackstone and China Investment Corporation (CIC) making a bid for Investa Office Fund appears to be all but dead in the water, according to the Australian Financial Review.
That would leaves Dexus Property Group best placed to win the $3.5 billion portfolio at a shareholder vote on Friday. 
But the AFR reported, citing sources, that DEXUS is in talks with some of the consortium to sell some assets. 
In a similar move, when it bought Commonwealth Property Fund back in 2014, Dexus did a deal in which it sold rival bidder GPT GROUP a $1.2 billion "consolation prize" of several assets to effectively take GPT out of the race. The properties were acquired at valuation. 
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jonathanchancellor-7SQnKwU6yx

Dexus responds to Takeovers Panel declaration

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In addition to news of a <a href="/news/a-new-melbourne-icon-squarely-in-minister-wynnes-hands-447-collins-street">new iconic design for 447 Collins Street</a>, last week also yielded additional information on a handful of other sizeable Melbourne residential developments.

Spanning four separate suburbs, the six proposals are all substantial towers with the smallest containing some 321 dwellings. All bar one of the six have been championed by established property players which maintain a national presence, and combined are capable of adding near on 3,000 new apartments into the Melbourne market.

See below an overview of the six projects which are at differing stages of the development process:

<h2>SKY ONE Box Hill - 545 Station Street, Box Hill</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image9_2.jpg" rel="gallery-all" title="SKY ONE Box Hill. Image courtesy Golden Age Development Group"><img alt="" class="image-article-full-width-580px" height="349" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image9_2.jpg?itok=zXJGcpOU" title="SKY ONE Box Hill. Image courtesy Golden Age Development Group" width="580"></a>

<figcaption>SKY ONE Box Hill. Image courtesy Golden Age Development Group</figcaption></figure>The wraps are off Golden Age Group's newest project dubbed SKY ONE Box Hill. After picking up the approved development site in a recent sales campaign headed by CBRE, Golden Age Group have elected to rework the approved Buchan Group-designed 34 level tower.

In its place will stand a sleek 35 storey tower consisting of luxury apartment above retail uses across lower levels. Launching in the first quarter of 2016, SKY ONE Box Hill is a continuance of Golden Age Group's surge into the Melbourne apartment market which has yielded six high-rise projects in a few short years, including the under construction <a href="/buildings/victoria-one-452-472-elizabeth-street-melbourne">Victoria One</a> which will eventually stand at 241 metres.

<h2>Shadow Play - 105 Clarendon Street, Southbank</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image8_1.jpg" rel="gallery-all" title="Shadow Play's distinctive silhouette. Image courtesy Enrich Property"><img alt="" class="image-article-full-width-580px" height="363" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image8_1.jpg?itok=79079FuV" title="Shadow Play's distinctive silhouette. Image courtesy Enrich Property" width="580"></a>

<figcaption>Shadow Play's distinctive silhouette. Image courtesy Enrich Property</figcaption></figure>BPM revealed last week that Melbourne builder Icon Co will construct its marquee Southbank residential tower. Valued at $300 million and designed by Elenberg Fraser, Shadow Play is expected to reach completion in May 2018 following the commencement of demolition on the existing structures onsite.

Included are 475 one, two and three bedroom apartments serviced by 150 podium parking spaces and a 600 square metre communal space across level nine.

<h2>32-44 Flinders Street, Melbourne</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image10_5.jpg" rel="gallery-all" title="Further revised. Image courtesy SJB Architects"><img alt="" class="image-article-full-width-580px" height="402" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image10_5.jpg?itok=lLwKnD0x" title="Further revised. Image courtesy SJB Architects" width="580"></a>

<figcaption>Further revised. Image courtesy SJB Architects</figcaption></figure>DEXUS Property Group's first foray into the local residential market has gone through the approvals ringer with a redesign implemented which saw the initial proposal trimmed from 66 levels to 56, while the total number of dwellings has also fallen from 625 to 496.

Melbourne City Council planners have recommended objection based upon excessive height, inadequate setbacks and overshadowing although DEXUS's intentions will lie with the Minister for Planning as the gross floor area of the building proposed is in excess of the 25,000sqm benchmark.

<h2>295-309 King Street, Melbourne</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image11_4.jpg" rel="gallery-all" title="295-309 King Street. Image courtesy Plus Architecture"><img alt="" class="image-article-full-width-580px" height="335" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image11_4.jpg?itok=gcAI9D3a" title="295-309 King Street. Image courtesy Plus Architecture" width="580"></a>

<figcaption>295-309 King Street. Image courtesy Plus Architecture</figcaption></figure>Also back under the gaze of Melbourne City Council is an application that first surfaced during October 2014. Council planners have recommended refusal for the tower based upon revised plans which were received on 14 October 2015 and which includes 440 apartments within a 215 metre tower.

Although the revised plans were submitted post the amendments to the Melbourne Planning Scheme which would consequently render the application invalid, its initial submission date during 2014 suggests it will likely be judged under the old planning provisions… or so the theory goes.

<h2>1 Collins Wharf, Docklands</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image14_1.jpg" rel="gallery-all" title="Lend Lease's latest Docklands offering. Image courtesy The Australian"><img alt="" class="image-article-full-width-580px" height="327" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image14_1.jpg?itok=PF_du3JI" title="Lend Lease's latest Docklands offering. Image courtesy The Australian" width="580"></a>

<figcaption>Lend Lease's latest Docklands offering. Image courtesy The Australian</figcaption></figure>The Australian reported last week on Lend Lease's latest addition to Victoria Harbour is in the form of a Bates Smart-designed residential tower. Covering 28 levels and encompassing 321 dwellings the stepped tower will sit diagonally opposite Library at The Dock and will be a follow-up the the precinct's premier apartment projects Convesso and Concavo, also Bates Smart creations.

1 Collins Wharf will follow on from the current six residential towers that are under construction within Victoria Harbour as Lend Lease enjoys robust demand for Melbourne apartments from both local and overseas purchasers.

<h2>38 Freshwater Place, Southbank</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image21_4.jpg" rel="gallery-all" title="A prized development site. Image courtesy CBRE"><img alt="" class="image-article-full-width-580px" height="410" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image21_4.jpg?itok=qamzVdWB" title="A prized development site. Image courtesy CBRE" width="580"></a>

<figcaption>A prized development site. Image courtesy CBRE</figcaption></figure>One of Melbourne's premier development opportunities is up for grabs with 38 Freshwater Place put on the market by M &amp; L Hospitality. With approval in place for a 273 metre tower which could not be repeated under new planning rules, competition to secure the site is expected to be strong.

METIER3 have designed the sweeping tower with 496 apartments and 390 hotel suites included, although the successful buyer may choose to convert the scheme to a purely residential outcome.
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