<p>Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.</p>

<p>Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.</p>

<p>"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.</p>

<p>"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=372549]</p>

<p>Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.</p>

<p>"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.</p>

<p>The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=314259]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.</p>

<p>According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.</p>

<p>Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=372550]</p>

<p>Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.</p>

<p>The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.</p>

<p>The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.</p>

<p>"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."</p>

<p>The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.</p>

<p>With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.</p>

<p>[smartcode_project_cta:default project_id=4661]</p>


Joel Robinson

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

<p>Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.</p>

<p><a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.</p>

<p>The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.</p>

<p>Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.</p>

<p>Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355297]</p>

<p>The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.</p>

<p>Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.</p>

<p>"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.</p>

<p>The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355293]</p>

<p>The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.</p>

<p>According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.</p>

<p>The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;</p>

<p>Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355303]</p>

<p>The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.</p>

<p>"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.</p>

<p>"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355304]</p>

<p>Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.</p>

<p>Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.</p>

<p>[smartcode_project_cta:default project_id=102717]</p>


Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

<p>New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.</p>

<p>It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.</p>

<p>With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.</p>

<p>The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.</p>

<p>Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=372394]</p>

<p>Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.</p>

<p>"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.</p>

<p>"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=953]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.</p>

<p>Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.</p>

<p>That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=925]</p>

<p>Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.</p>

<p>Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.</p>

<p>"The Lennox is where aspirational living becomes attainable," Hamblett said.</p>

<p>"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."</p>

<p>Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.</p>

<p>"At The Lennox, lifestyle is not an afterthought, it is the foundation."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=5374]</p>

<p>The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.</p>

<p>Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.</p>

<p>That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.</p>

<p>"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."</p>

<p>[smartcode_project_cta:default project_id=5743]</p>


The apartment price gap drawing Sydney buyers west

<p>A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.</p>

<p>The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.</p>

<p>The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.</p>

<p>The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.</p>

<p>Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.</p>

<p>"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.</p>

<p>"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."</p>

<p><img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" /></p>

<p>Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.</p>

<p>Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.</p>

<p>Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.</p>

<p>"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.</p>

<p>"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."</p>

<p>Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.</p>

<p>Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.</p>


Rainbow Bay apartment doubles in price since off the plan sale during pandemic

<p data-end="315" data-start="85">The long-planned transformation of Brisbane's historic Shafston Estate has taken another major step, with Capella Hotel Group announced as the luxury hospitality partner behind what will become Brisbane's first branded residences.</p>

<p data-end="499" data-start="317">The project, to be known as <strong data-end="376" data-start="345">Capella Residences Brisbane</strong>, is being delivered by Verso Projects at the landmark Kangaroo Point riverfront estate, with completion targeted for 2029.</p>

<p data-end="899" data-start="501">The announcement follows a series of planning changes to the project over recent years. The site was originally approved in 2023 for a 15-level, 37-apartment development designed by Rothelowman for Burgundy Group before Verso Projects took over the 10,070 sqm riverfront holding and lodged revised plans with Kerry Hill Architects to increase the development to a 25-level tower with 51 apartments.</p>

<p data-end="1154" data-start="901">The latest announcement confirms Capella Hotel Group will bring its branded residential offering to the project, marking just the second Capella Residences development globally after Seoul, and the group's first branded residential project in Australia.</p>

<p data-end="1387" data-start="1156">The <a href="https://www.apartments.com.au/new-apartments/23-castlebar-street-kangaroo-point-qld-4169">Castlebar Street development</a> will centre around the restoration of the heritage-listed Shafston House, one of Brisbane's oldest residences, originally constructed in 1851 by Reverend Robert Creyke as a single-storey cottage known as Ravenscott.</p>

<p data-end="1387" data-start="1156"><img alt="Capella" data-entity-type="file" data-entity-uuid="2b9f4ce5-638f-4d6b-8082-3ca7e4b75fca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-09%20at%207.20.41%E2%80%AFAM.png?VersionId=f7aeqsW_DzOJI4FymWb3lD8NptSfsP7q" /></p>

<p data-end="1611" data-start="1389">Capella said the project aligns with its focus on heritage-led developments, with the Brisbane estate combining the restored historic residence with a new luxury apartment tower and hospitality-inspired resident amenities.</p>

<p data-end="1823" data-start="1613">Residents will have access to the Capella Living Room, a concierge-led communal space inspired by the group's luxury hotels, alongside landscaped gardens, six swimming pools, wellness and recreation facilities.</p>

<p data-end="2042" data-start="1825">The broader estate will also include two riverfront homes, a six-berth private marina, porte cochère arrival experience, secure basement parking and a new section of public riverwalk along the Brisbane River frontage.</p>

<p data-end="2177" data-start="2044">The heritage Postal Depot Building will also be retained and repurposed as a guest house, in line with the revised development plans.</p>

<p data-end="2420" data-start="2179">The project represents another evolution for the site, which Kerry Hill Architects previously described as a rare opportunity to restore one of Brisbane's most significant heritage estates while creating a new benchmark for apartment living.</p>

<p data-end="2724" data-start="2422">"The Shafston Estate provides a once-in-a-generation opportunity to restore one of Brisbane's finest heritage precincts and to reinstate residential use as a unique site perched on the edge of Kangaroo Point," Kerry Hill Architects said in its Urban Context Report accompanying the planning submission.</p>

<p data-end="2858" data-start="2726">"The project will celebrate excellence in sub-tropical residential design, setting a new benchmark for vertical living in Brisbane."</p>

<p data-end="3130" data-start="2860">Verso Projects, which now has an $8.5 billion development pipeline spanning more than 6,000 dwellings across apartments, townhouses, retail and commercial projects, said the partnership with Capella would elevate the development beyond a traditional residential project.</p>

<p data-end="3415" data-start="3132">"We feel honoured to be restoring Shafston Estate to its former glory, elevating it to new heights of luxury and excellence underpinned by Capella's distinctive service ethos and design philosophy, and making it a standout landmark in Brisbane," Verso Projects CEO Steve Laffey said.</p>

<p data-end="3658" data-start="3417">"By partnering with Capella, globally recognised for its refined approach to luxury hospitality and deep respect for cultural and historical context, we will elevate this project beyond a residential offering into a world-class destination."</p>

<p data-end="3820" data-start="3660">Capella Hotel Group President Roland Fasel said Brisbane's emergence as a global city made it the right location for the company's Australian residential debut.</p>

<p data-end="3961" data-start="3822">"Brisbane is a city on the cusp of something remarkable, and Capella Residences is our commitment to being part of that story," Fasel said.</p>

<p data-end="4083" data-start="3963">"The Capella residential experience is more than luxury. It is about a sense of belonging to a place with deep meaning."</p>

<p data-end="4227" data-start="4085">Private appointments have now opened for the project, with a display suite expected to open in late 2026 ahead of the planned 2029 completion.</p>


Capella to launch Brisbane's first branded residences at Shafston House, Kangaroo Point

Melbourne

<html><body>
<p>A total of 313,700 sqm of Premium and A-Grade projects in the past six months has given Melbourne’s CBD a new milestone of the largest CBD office market in Australia, according to JLL Research.</p>
<p>In Q2 2020, JLL Research found that the Melbourne CBD’s total office stock was 4,953,033 sqm. Now, with the practical completions of three new major developments this month, the Melbourne CBD reaches a new stock total of 5,107,840 sqm. Sydney’s total office stock for Q2 2020 was 5,024,240 sqm.</p>
<p><em>The three office completions crowning Melbourne as the largest office CBD in Australia include the following developments:</em></p>
<p>1. Cbus Property and Keppel REIT’s Victoria Police Centre at 311 Spencer Street, including 65,000 sqm of office space.</p>
<p>2. The Lendlease Two Melbourne Quarter at 697 Collins Street, including 46,350 sqm of office space.</p>
<p>3. Dexus 80 Collins Street, including 42,960 sqm of office space.</p>
<p>JLL’s Managing Director (Victoria) - Craig Shute said, “The completion of these three projects marks a real inflection point in the dynamics of Australian CBD’s.'</p>
<p>Melbourne is now the largest Australian city in terms of commercial office space and this status is unlikely to change. This rapid rise is testament to Melbourne’s balanced economic drivers and will result in an increase of national and global investment capital seeking a foothold or looking to expand their portfolios in the city."</p>
<p>"We are confident Melbourne will rebound relatively strongly as we recover from the current COVID-19 restrictions and re-open for business,” He added.</p>
<p>Other projects completed in the Melbourne CBD earlier this year include Mirvac and Suntec REIT’s Olderfleet building at 477 Collins Street (56,584 sqm), Charter Hall’s Wesley Place at 130 Lonsdale Street (55,000 sqm) and Cbus Property and ISPT’s Collins Arch at 447 Collins Street (47,517sqm).</p>
<p>Whilst a large amount of supply is being delivered to the market, there is very little vacancy, with 94% of the 313,700 sqm office stock being delivered in 2020 already pre-committed, according to JLL Research.</p>
<p>JLL’s Senior Research Director (Victoria) - Annabel McFarlane said, “JLL has been tracking office stock in Melbourne’s CBD office market since 1970, when the size of the market was just 1.45 million sqm."</p>
<p>"The most significant contribution to this growth has been Docklands as a new CBD precinct, delivering just over 1 million sqm of new, high quality office stock and pushing Melbourne to now Australia’s largest CBD office market, just larger than Sydney’s CBD office market,” she said.</p>
<p>Ms McFarlane continued, “Significant momentum and strong demand throughout the last 20 years has supported office market development. Melbourne’s CBD office market has accounted for 40% of all CBD net absorption (1.7 million sqm) in the six CBD markets we track. This compares to Sydney (739,900 sqm), Canberra (647,600 sqm), Brisbane (542,850 sqm), Perth (293,700 sqm) and Adelaide (291,300 sqm).”</p>
<p>Melbourne and Sydney’s CBD office markets are comparable in size to several major international CBD office markets including Madrid which stands at 6.5 million sqm, Barcelona at 4.9 million sqm and Berlin at 4.5 million sqm.</p>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Melbourne takes crown as the largest CBD office market in Australia: JLL

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<p>EXPERT OBSERVER</p>
<div>
<div id="post-body-4211962439133051469" class="post-body entry-content">
<div>There was a resurgence in homebuyer finance in June, but not in Victoria, where finance commitments dropped sharply. </div>
<div> </div>
<div>Unfortunately for Melbourne, this trend will only continue through July and August...and into September.</div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-gF79nLAcUM4/XyoSdvUDgtI/AAAAAAAA3d0/0FQojubIv-c-xXccTfWU79gepvpeC7t5ACNcBGAsYHQ/s640/A3.jpg" width="640" data-original-height="804" data-original-width="1388"></div>
<div> </div>
<div>First homebuyer commitments zipped higher, but there was another sharp 9 per cent drop in Victoria, following on from a similar decline in the month of May.</div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-wZlMW6-hve0/XyoS1GGoJmI/AAAAAAAA3eU/ZaszYYTBge0Kzo_hXpBf4TPtAEA7issYwCNcBGAsYHQ/s640/FHB1.jpg" width="640" data-original-height="799" data-original-width="1420"></div>
<div> </div>
<div>Overall, stripping out refinancing housing finance jumped +6.2 per cent, despite Victoria's woes. </div>
<br><div class="separator"><img src="https://1.bp.blogspot.com/-yTuEodvSQRw/XyoSdvDNknI/AAAAAAAA3d8/5rWgS_q77vIxgfkdo9wnuvUGGJHzEIt_gCNcBGAsYHQ/s640/A4.jpg" width="640" data-original-height="798" data-original-width="1441"></div>
<div> </div>
<div>The average mortgage size has been a bit all over the place of late, possibly due to there being more first homebuyers in the market. </div>
<div> </div>
<div>AFG's quarterly numbers showed a record high mortgage size in Q2, albeit only just.</div>
<div> </div>
<div>Basically flat would be another way to describe the figures (and the same for the ABS data).  </div>
<br><div class="separator"><img src="https://1.bp.blogspot.com/-SLMdAg1gUlc/XyoSeorD_JI/AAAAAAAA3eE/CmCCLxqbo2k84D06MWp6qUdpVhUXOASIACNcBGAsYHQ/s640/afg2.jpg" width="640" data-original-height="801" data-original-width="1372"></div>
<div> </div>
<div>There was enormous strength in the average mortgage size in New South Wales, which hit a record high, but not so in Victoria. </div>
<br><div class="separator"><img src="https://1.bp.blogspot.com/-Hc8xWagT5ig/XyoSeWzCIpI/AAAAAAAA3eA/nFg25VvGcW0_53ZOQT7J_FRHrrFBYfLeQCNcBGAsYHQ/s640/afg.jpg" width="640" data-original-height="800" data-original-width="1364"></div>
<div class="separator"> </div>
<div>Overall, a decent rebound ex-Melbourne.</div>
<div> </div>
<div>Note that this bounce was also before the HomeBuilder boom kicks in.</div>
<div> </div>
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<div>New South Wales will also see a surge in activity up to $1 million resulting from the stamp duty discounts announced on July 27. </div>
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<div>Victoria recorded some 725 cases of COVID-19 over the past 24 hours, ensuring that the Stage 4 lockdown will almost certainly run for weeks to come. </div>
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<p><strong>PETE WARGENT</strong><em><strong> </strong>is the co-founder of AllenWargent property buyers and a best-selling author and blogger </em></p>
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Homebuyers returning, but not in Victoria: Pete Wargent

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Further property price falls ahead: Shane Oliver

<html><body><p><span><span>Melbourne homeowners may need to wait at least two years before the property market shows signs of growth according to Finder, Australia’s most visited comparison site. <br><br>In this month’s <a href="https://www.finder.com.au/rba-cash-rate" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">Finder RBA Cash Rate Survey™</a>, all experts surveyed expect a cash rate hold in August (40/40), with the consensus being that no further cuts will be implemented this year. However, more than two-thirds (26, 72%) of experts forecast an increase in 2021 or 2022.<br><br>Of those who weighed in on property, the majority are pessimistic about Melbourne prices increasing before April 2021 (75%, 18/24), while one-third (29%, 7/24) expect the market to stagnate until 2022 or beyond.</span></span><br><br><img src="https://mcusercontent.com/cc5e9bce699fa1d71a67cf499/images/04359ef0-2dec-4061-afa3-b17165532308.png" data-imagetype="External"><br><br><span><span>The outlook is slightly rosier for the Sydney housing market, with 38% of experts (9/24) predicting that house prices will recover before April 2021. <br><br>Graham Cooke, insights manager at Finder, said that the unpredictability of COVID-19 has sent ripples of unease through the market.<br><br>“Both Melbourne and Sydney experienced double-digit growth throughout most of 2019. But widespread unemployment, travel bans and a second virus wave has caused a surge in property vacancies throughout both capitals."<br><br>“Melbourne’s median house price fell by 3.5% to $881,369 between March and June 2020, and Sydney wasn’t far behind with a 2% drop during this period."<br><br>“As Sydney teeters on the edge of a second major outbreak, prospects may be equally grim for homeowners here when it comes to the housing market recovery period,” Cooke said. <br><br>A surprisingly high percentage of experts and economists (42%, 11) also believe that now is a good time for homeowners to put their property on the market. <br><br>Only a quarter of experts (26%, 7) said homeowners should wait for 2 years before selling their property.<br><br>Cooke said, “It is clear that there is widespread uncertainty in the market as to what prices will be in the near future."<br><br>“With investors fleeing the market, banks are fighting tooth and nail for owner-occupier customers. It’s the ultimate borrower’s market. If your home loan has a 3 in front of it, you’re paying too much in 2020,” he said. </span></span></p></body></html>

Melbourne property recovery will be delayed to 2021/2022: Finder.com.au

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<p>Teska Carson has sold an office/warehouse in Richmond for $3.4 million to a local owner-occupier after taking nearly 230 enquiries and 12 offers for the newly renovated industrial property.</p>
<p>Located at 426 Burnley Street - about ten minutes from the centre of Melbourne - the property comprises a single level, 595 sqm, solid brick building.</p>
<p>It had a clear span warehouse, a two-level office, and basement storage, on a 555 sqm site with 12 metres street frontage.   </p>
<p>Agent George Takis said the quality building was located in one of Melbourne’s most popular city fringe markets with strong growth prospects and the additional attraction of the potential for redevelopment.</p>
<p>"More than 200 enquiries, 12 offers and $6126 a square metre, is an absolutely extraordinary result in any market, but particularly in these most uncertain times. </p>
<p>The property was sold with vacant possession.</p>
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12 offers for $3.4 million Richmond warehouse

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<p> </p>
<p align="center">Melbourne tyre retailer and wholesaler, Superior Tyres, will open its doors in Sunshine West after securing on an industrial facility. </p>
<p>The 7,036sqm property at 531 Somerville Road features a building area of 4,071sqm, incorporating a mix of office, warehouse and large showroom/retail areas.</p>
<p>The property, formerly occupied by Tradelink, features three container height roller doors, a large concrete hardstand and ample car parking.  </p>
<p>CBRE negotiated the lease.</p>
<p>Superior Tyres will lease the property for six years at a rate of $330,000 per GST (plus GST and outgoings).  </p>
<p>Mr Murphy commented Superior was looking to relocate from Kensington/</p>
<p>"Superior Tyres identified this property as a perfect fit for the long-term future of its family business. It offered an ideal blend of retail, office and warehouse.  </p>
<p>The onset of COVID-19 caused some delays in finalising the transaction but both landlord and tenant were understanding and committed to a mutually-beneficial deal.”  </p>
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Superior spot in Sunshine West for tyre specialist 

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<p>Melbourne's housing affordability and liveability improves on slightly in the 1st half of 2020 compared to the 2nd half of 2019, reveals PRD's <em>Affordable and Liveable Property Guide Melbourne 1st Half 2020</em>. </p>
<p>Housing affordability in VIC declined in the 12 months to Q1 2020, with the proportion of income to meet home loan repayments increasing by 8.4 per cent. On the other hand, the level of first home buyer loan activity increased by 24.4 per cent in the same period. A substantial increase in demand is potentially due to government first home buyer incentives.</p>
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<p><span>Affordable and liveable house suburbs (those with a maximum property sale price of the VIC average home loan plus a 90 per cent premium), as per the </span><span>2nd Half 2019</span><span>μ </span><span>report, exist. Example suburbs include Preston, Greensborough, Greenvale, Oak Park, and Forest Hill. In the 1st half of 2020, 103 suburbs fell within this price range, a slight improvement compared to the 100 suburbs previously found in the </span><span>2nd Half 2019 </span><span>report. Further, these suburbs still meet the set liveability criteria.</span></p>
<p>The most affordable and liveable house suburbs include: </p>
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<td> </td>
<td>Approx. radius from the Melbourne CBD</td>
<td>Median House Price</td>
<td>1 Bed Median Price </td>
<td>2 Bed Median Price </td>
<td>3+ Bed Median Price </td>
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<td>Greensborough</td>
<td>20km</td>
<td>$803,000</td>
<td>$602,625</td>
<td>$760,000</td>
<td>$876,250</td>
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<td>Altona</td>
<td>19.5km</td>
<td>$885,000</td>
<td>$763,250</td>
<td>$842,500</td>
<td>$1,030,000</td>
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<td>Oakleigh South</td>
<td>7.7km</td>
<td>$923,000</td>
<td>$880,000</td>
<td>$890,500</td>
<td>$1,028,000</td>
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<p>Affordable and liveable unit suburbs include: </p>
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<td> </td>
<td>Approx. radius from the Melbourne CBD</td>
<td>Median House Price</td>
<td>1 Bed Median Price </td>
<td>2 Bed Median Price </td>
<td>3+ Bed Median Price </td>
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<td>Kingsville</td>
<td>9.3km</td>
<td>$447,000</td>
<td>$285,000</td>
<td>$415,000</td>
<td>$747,500</td>
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<td>Moonee Ponds</td>
<td>7km</td>
<td>$470,000</td>
<td>$400,000</td>
<td>$524,000</td>
<td>$761,000</td>
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<td>Brunswick East</td>
<td>6km</td>
<td>$525,000</td>
<td>$386,000</td>
<td>$560,000</td>
<td>$821,500</td>
</tr>
</tbody></table>
<p>From 2018 to 2019/20 the number of houses sold in Melbourne Metro increased by 19.1 per cent. However, during this time frame median house prices declined by -11.1 per cent to $1,091,000. Similarly, demand for units increased by 12.9 per cent and median unit price softened by -1.8 per cent to $600,000. </p>
<p><a href="https://www.propertyobserver.com.au/images/2020/6/26/10_Housing.jpg" target="_blank">Click here</a> to enlarge:</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/26/10_Housing.jpg" alt="" width="524" height="287"></p>
<p>Melbourne Metro sales and median price growth. Source: PRD. </p>
<p>Over Q1 2020, the Melbourne Metro rental market recorded a median rental price of $410 per week for houses and $460 per week for units, representing quarterly median price growth of 2.5 per cent for houses and 4.5 per cent for units.</p>
<p><a href="https://www.propertyobserver.com.au/images/2020/6/26/10_Rental.jpg" target="_blank">Click here</a> to enlarge: </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/26/10_Rental.jpg" alt="" width="479" height="315"></p>
<p>Melbourne rental market analysis. Source: PRD. </p>
<p>There is still a healthy demand for properties in Melbourne Metro, while affordability has increased. This puts Melbourne Metro in a unique position, as first home buyers can benefit from lower prices yet sellers can be confident of market demand. Melbourne Metro is a city conducive for investment as vacancy rates were recorded at a healthy 2.8 per cent in April 2020, indicative of rental properties being occupied relatively quickly. </p>
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<p><span>The percentage premium needed to be added to the VIC average home loan in this report is 79 per cent, lower than the 90 per cent added in </span><span>2nd Half 2019</span><span> </span><span>report. Further, it is lower than the 111 per cent premium that is needed to reach the Melbourne Metro median house price, whilst still being able to satisfy all other methodology criteria set. A similar pattern can be seen in the unit market, which suggests that the cost of liveability has declined in Melbourne Metro. Now is an ideal opportunity for those looking to enter the market.</span></p>
<p><span>The top three lowest priced suburbs in Melbourne are Dallas whose 2019/20 median price is $455,000, Meadow Heights ($480,000) and Albanvale ($514,500). Dallas has a project development value of $3 million and 2019/20 median rent of $350 with a 3.3 per cent rental yield. Meadow Heights has a project development value of $3.2 million and median rent of $370 with a rental yield of 4.2 per cent, while Albanvale has the lowest project development value of $1.8 million, and a median rent of $350 with a 3.1 per cent rental yield. </span></p>
<p><span>In contrast, the top three highest priced suburbs are Toorak (whose median price is $3,912,500), East Melbourne ($3,513,500) and Canterbury ($2.8 million). Toorak has the highest project development value of $35.2 million while East Melbourne has the highest median rent and rental yield of $910 and 4.1 per cent. </span></p>
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<p><span>In the 1st half of 2020 a well-diversified project development expenditure worth approximately $17.8 billion in Greater Melbourne is set to commence, which will have a positive snowball effect on local economies and the real estate market in Melbourne Metro. </span></p>
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<p><span>A key mixed use project is the Fisherman's Bend Urban Renewal Project ($1.0B). This project will construct residential, commercial and retail precincts. The area is to be transformed into 4 new CBD style mini-suburbs and an employment precinct, with housing for up to 80,000 people. A key commercial project is University of Melbourne Student Precinct ($229.0M), and a key infrastructure project is Sunbury to Cranbourne Pakenham Corridor Rail Project ($571.5M).</span></p>
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Melbourne shows minor improvement in housing affordability: PRD

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<p>Melbourne’s house and unit prices declined over the June quarter, the market’s first fall since early 2019 and the deepest quarterly fall of all the major capital cities.</p>
<p>With Inner Melbourne, the inner east and inner south seeing price declines, opportunities are growing for prospective buyers to enter the market</p>
<p dir="ltr"><img src="https://mcusercontent.com/b16c0b957ea98f662ab985606/images/54036863-9430-4062-a6a1-a416e52344a5.png" data-imagetype="External"><br><em>June 2020 QoQ change for Melbourne house and unit prices</em></p>
<p>“Melbourne’s record high house price achieved last quarter was short-lived: prices tumbled 3.5 per cent over the June quarter. House values have fallen $32,000 and units $9,000 over the first quarter to show the impact of COVID-19. Prior to this, Melbourne house prices had made a full recovery from the 2017-19 slump. This quarter marks the first fall since early 2019 and is the deepest quarterly fall of all the major capital cities. Affordability appears to be front of mind for buyers, with more substantial falls in the city, the inner east and inner south, while the outer areas remain stable or have risen. Units have held up better than houses, falling a more moderate 1.7 per cent over the June quarter. It is the opposite trend for Melbourne units, with the price slump concentrated in the affordable areas of the south east and west.”</p>
<p>“Home owners have been provided with a lifeline during this economically challenging time through the intervention of the banks and government: the JobKeeper subsidy as well as a more generous JobSeeker payment which have both been extended, along with the banks offer to pause mortgages. These will minimise the number of urgent or distressed sales, which will in turn support prices. The risks become far greater once these initiatives cease. That said, evidence suggests further price weakness - in June 13.4 per cent of sellers reduced their asking price, five times higher than the same time last year.”</p>
<p>“Melbourne’s property market outlook has adjusted in recent weeks as the city enters its second lockdown. The full impact of the first economic shutdown was clearly evident in the June quarter. Sales activity, listings and clearance rates fell in April. However the rebound was swift as restrictions eased, confidence lifted from the April lows, vendors returned, and more buyers decided it was a good time to purchase - nationally rising to a six-month high. The second lockdown will stall this momentum temporarily,” said Domain Senior Research Analyst, Dr Nicola Powell.</p>
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Melbourne property prices hit hardest in June quarter: Domain

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<p><span>Over the March quarter, the portion of loss making resales across Melbourne was 6.8 per cent, according to CoreLogic's Pain and Gain March Quarter 2020 report. </span></p>
<p><span>This is up from 6.3 per cent in the December quarter, and down 20 basis points from 7.0 per cent in the March 2019 quarter. The portion of loss making sales among units was higher than houses, at 15.5 per cent. The portion of loss making sales in the house segment was just 2.7 per cent.</span></p>
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<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
<p><span>The highest incidence of loss making sales, as has been a </span>trend for the past few quarters, were concentrated across the Melbourne LGA region. 33.6 per cent of resales saw a loss, and the median value of losses in the region was approximately $44,500. There were approximately 120 loss making sales observed across the Melbourne council region. All of these were units, and 68.6 per cent of these were owned by investors.</p>
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<p><span>For Melbourne and parts of Victoria, the recent rise in coronavirus cases presents ongoing risk to housing market demand. Government lockdowns have been a key determinant of economic performance since the onset of the pandemic. With dwelling value declines already being led by the Melbourne market, which saw dwelling value declines of 2.3 per cent in the June quarter, it is highly likely that there will be an increase in the portion of loss making sales in the metropolitan area over the coming months.</span></p>
<p><span>But despite the increase in the </span><span>rate </span><span>of loss making resales in Melbourne, 716 loss making sales were observed over the March quarter, compared with 904 observations over the December quarter. This reinforces a sense of stability that has been maintained in the housing market at a high level, as a result of lower transaction activity. Maintaining this stability will be dependent on the banking sector and government to extend relief of mortgage repayments, and income support, until the virus curve is once again flattened across the state.</span></p>
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<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
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6.8% of Melbourne resales made a loss: CoreLogic Pain & Gain

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<p>Melbourne house and unit rents fell over the June quarter, with unit rents recording the first annual fall in 15 years, according to the Domain Quarterly Report for June.</p>
<p>With Inner Melbourne seeing house rents drop by $40 and units by $35 a week over the June quarter, alongside a rapid increase in the number of properties for lease, tenants are in a strong position to negotiate prices as their options expand.</p>
<p dir="ltr"><img src="https://mcusercontent.com/b16c0b957ea98f662ab985606/images/51b2c04a-57ee-441b-b0ab-6e0af9823a5a.png" width="1087" height="362" data-imagetype="External"><br><em>June 2020 QoQ change for Melbourne rental prices</em></p>
<p>“Melbourne’s rental prices fell over the June quarter for both houses and units. While house rents remained stable over the year, unit rents recorded the first annual fall in 15 years. The drop in unit rents have pushed gross rental yields to a near-record low.”</p>
<p>“Inner Melbourne felt the brunt of price declines over the June quarter, median house asking rents dropped a staggering $40 and units $35 a week. Vacancies have surged in inner Melbourne, with advertised rentals lifting 64 per cent from March to June. This has created a discounting war, forcing one-third of inner Melbourne landlords to slash asking rents in an attempt to secure a tenant.</p>
<p>“Many short-term leases have converted to long-term, increasing rental choice. With significant job losses and wage cuts, tenants may have relinquished higher-priced rentals in favour of affordability or to move in with family. Though international border closures have weakened demand, Melbourne is particularly exposed to a drop in overseas migration, student population and tourism, as a significant proportion of rental demand comes from overseas. This is particularly evident in the CBD, which also has a greater exposure to the industries most vulnerable to the job losses associated with the coronavirus pandemic and has a high proportion of households renting.”</p>
<p>“Vacancies are likely to remain high in the coming months across metropolitan and tourist areas, which could result in further rent reductions. Any potential renewed short-term demand from interstate travel has been curtailed as Melbourne enters a second lockdown,” said Domain Senior Research Analyst, Dr Nicola Powell.</p>
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