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.

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.

"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.

"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."

[smartcode_project:default project_id=4661 project_image_fid=372549]

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.

"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.

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."

[smartcode_project:default project_id=4661 project_image_fid=314259]

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.

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.

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.

[smartcode_project:default project_id=4661 project_image_fid=372550]

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.

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.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"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."

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.

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.

[smartcode_project_cta:default project_id=4661]

Joel Robinson

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

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.

<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.

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.

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.

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.

[smartcode_project:default project_id=102717 project_image_fid=355297]

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.

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.

"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.

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.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

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.

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;

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;

[smartcode_project:default project_id=102717 project_image_fid=355303]

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.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"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."

[smartcode_project:default project_id=102717 project_image_fid=355304]

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.

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.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

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.

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.

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.

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.

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.

[smartcode_project:default project_id=5743 project_image_fid=372394]

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.

"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.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

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.

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.

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.

[smartcode_project:default project_id=5743 project_image_fid=925]

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.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"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."

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.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

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.

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.

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.

"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."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

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.

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.

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.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"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."

<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" />

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.

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.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"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.

"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."

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.

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>.

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

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.

The project, to be known as Capella Residences Brisbane, is being delivered by Verso Projects at the landmark Kangaroo Point riverfront estate, with completion targeted for 2029.

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.

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.

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.

<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" />

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.

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.

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.

The heritage Postal Depot Building will also be retained and repurposed as a guest house, in line with the revised development plans.

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.

"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.

"The project will celebrate excellence in sub-tropical residential design, setting a new benchmark for vertical living in Brisbane."

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.

"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.

"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."

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.

"Brisbane is a city on the cusp of something remarkable, and Capella Residences is our commitment to being part of that story," Fasel said.

"The Capella residential experience is more than luxury. It is about a sense of belonging to a place with deep meaning."

Private appointments have now opened for the project, with a display suite expected to open in late 2026 ahead of the planned 2029 completion.

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

Melbourne

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EXPERT OBSERVER
Despite the lift, the Leading Index growth rate remains below zero, indicating momentum tracking well below trend.
<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/2020/1/29/10_NEWS_BILL%20EVANS.jpg" alt="" width="536" height="359">
In fact the December print represents the thirteenth straight month where the Index growth rate has been negative.
This has been consistent with the persistent below trend growth we have seen for the Australian economy.
The latest update points to weak economic momentum continuing in the first half of 2020 and is consistent with Westpac’s view that growth will remain around a two per cent pace in the first half of 2020.
The Leading Index growth rate deteriorated over the second half of 2019, moving from –0.03 per cent in July to –0.32 per cent in December.
The main components driving the 0.28ppt shift have been a sell-off in commodity prices (–0.61ppts) and a more mixed performance on the Australian share market (–0.42ppts).
This has been partially offset by a stabilisation in the Westpac-MI Unemployment Expectations Index (+0.25ppts) a reduced drag from declining US industrial production (+0.21ppts), a modest lift in aggregate hours worked (+0.13ppts) and a widening yield spread as the RBA’s cuts in the cash rate have lowered short term rates (+0.10ppts).
The Reserve Bank Board next meets on February 4. Westpac expects that the Board will decide to hold the cash rate steady at its February meeting. That decision will be in response to the surprise fall in the unemployment rate from 5.3 per cent to 5.1 per cent since the last Board meeting in December.
However, we expect that decision to be a temporary pause in the rate cut cycle. The recent falls in the unemployment rate are expected to be unsustainable with this becoming apparent by the April meeting when we expect the next cut.
It is clear that the Board is confident that lower rates will boost the economy through a more competitive exchange rate; improved cash flows to households; and rising asset prices. However, the policy debate should not be around ‘either monetary policy or fiscal policy’.
The policies are not mutually exclusive and while Westpac expects a second rate cut in August we also support the use of fiscal policy to boost demand.
Our preference is to lift household incomes through bringing forward the stage two tax cuts phased over two years. A rise in expected demand should be more effective in boosting business investment than tax incentives.
BILL EVANS is the Chief Economist at Westpac
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bevans-rYk9SxEa4r

Westpac leading index remains negative for over a year: Bill Evans 

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Throughout 2019, Melbourne's house price have almost recovered what was lost during the slump, according to the latest quarterly report from Domain.
Houses have seen a 5% increase in value with median prices reaching $901,951. Units have seen even stronger growth of 5.6% with median values hovering around $549,701.
Though the year sprung off with deteriorating prices, the rest of 2019 saw growth, with the the final quarter providing the strongest quarterly gain in three years and the largest annual jump in two years.
With just under $6,800 left to regain, it appears that house prices are set for a new record high next quarter. 
However, this recovery remains uneven across the Melbourne as there are substantial price rises concentrated at the upper-end, led by the city, the inner east and inner south. 
Units in Melbourne continue to outperform houses as unit prices produced the strongest quarterly growth since mid-2009, and the biggest annual surge since mid-2010.
Unit prices are currently at a new record high that is 7.5 per cent higher than the previous peak in early 2018. 
Melbourne and Hobart units were the only cities to record a new high. Meanwhile, other cities remain below previous peaks in unit prices. 
Melbourne is the second most unaffordable city for units, with its price being higher than the median house prices in Adelaide, Perth, Darwin and Hobart. 
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j.ballantyne1990-6AQqhLzZaK

Melbourne's property prices look set for a new record high: Domain

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Cbus Property has received approval from the Department of Environment, Land, Water and Planning (DELWP) for a $1 billion office tower in Melbourne’s CBD.
The permit-approved Bates Smart-designed development, to be known as 435 Bourke Street, will comprise 59,000 square metres of office space across 49 storeys, encompassing four addresses on the corner of Bourke and Queen streets.
The commercial precinct will amalgamate the existing 140 and 150 Queen Street and 27 McKillop Street sites and is anticipated to serve as a vertical village for more than 5,500 city workers.
Cbus Property’s Chief Executive Officer, Adrian Pozzo said, “office vacancy rates in Melbourne’s CBD are at decade lows and there is little to no office space in the pipeline beyond 2023 so we are looking forward to sating some of this appetite with 435 Bourke Street.”
"The approved tower will form part of a new centre point in the Hoddle Grid and will feature multiple landscaped terraces providing an outlook across the Yarra River and iconic CBD landmarks, such as the MCG and Port Phillip Bay," he added
The diverse space will include a retail offering, double-height multi-function space for active wellness, flexible studio spaces and consulting rooms for passive wellness, as well as a rooftop garden retail offering. There will also be premium end-of-trip facilities, with accommodation for 600 bikes and associated amenities.
435 Bourke Street is targeting a 6-star Green Star rating, 5.5-star NABERS Energy rating and a Platinum WELL rating.
Demolition of the site’s existing infrastructure has commenced, with construction completion slated for 2023.
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CBUS receives planning approval for $1 billion Melbourne office tower

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Nine markets, the most recent being Sydney, Lismore and the Gold Coast have all reached the peak of the office market, according to valuation firm Herron Todd White latest report.
In their December National Property Clock for the office market, Herron Todd White found Ballina/Byron Bay, Coffs Harbour, Dubbo, South East NSW and the Sunshine Coast have been at the peak of the office market at least a month now.
The Illawarra office market has begun approaching it's peak as well.
Brisbane is now classified as a rising market, joining Ballarat.
Office markets that are just beginning their recovery this month Geelong and Newcastle who have joined that likes of Adelaide and Canberra, markets where a recovery as already begun.
Three capital cities remained in a bottom of the market position, Darwin, Perth and Hobart.
They are joined by Cairns, Launceston, Mackay, and Townsville, among others.
<a href="https://www.propertyobserver.com.au/images/2019/12/9/HTW%20Office%20Clock%20Decembe%202019.JPG" target="_blank">Click here</a> to enlarge:
<img src="https://www.urban.com.au/images/2019/12/9/HTW%20Office%20Clock%20Decembe%202019.JPG" alt="">
Alice Springs and Ecucha have continued to decline while the Mid North Coast is still at the beginning of its fall.
Rockhampton has joined Gladstone and South West WA as they approach the bottom of the market.
"It should come as no surprise that there was a mixed bag of results for the office market in 2019," the HTW report noted.
"Many big-city investors were looking to shore up cash flow by concentrating on commercial stock, which led to incredibly strong prices, but in less-populated areas, the outcomes were a bit more subdued."
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Sydney joins Melbourne as a peak office property market: HTW December Office Clock

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A ground-level café investment at the entrance of Melbourne's Botanicca Corporate Park has been sold for for $1,701,000.
Fitzroys agents Chris Kombi and Jordan Ceppi sold the property at Shop 1, 572 Swan Street at a 6.4% net yield.
The property encompasses a generous 500 square metres, comprising a modern fully-fitted café of 310 square metres, with a further 190 square metres of outdoor seating.
Leased to experienced café operator trading as The Shed on a 5+5+5 year lease, the property is currently returning a net rental of $110,000 per annum plus GST, with fixed annual increases of 4%.
Positioned on the corner of Swan Street and Central Drive at the entrance of Botanicca Corporate Park, the property provides highly exposed corner frontage of 34 metres.
Kombi said the Deadline Private Sale campaign saw a competitive process that attracted a range of investors, with a SMSF investor winning out.
"Investors are seeking strong income-producing, securely-leased assets in locations with healthy growth prospects," Kombi said. 
"Following further recent interest cuts, SMSF investors are looking in greater numbers for solid returns and are playing a more prominent role in the Melbourne retail investment market."
Major companies occupying neighbouring buildings include David Jones, Country Road, Harris Scarfe, GE, Fulton Hogan and Wells Fargo plus the 4.5-star Marriott Business Class Hotel and The University of Melbourne.
The property also benefits from its close proximity to the Swan Street tram network and the Heyington and Burnley train stations, as well as easy linkages to the CBD and broader Melbourne via the Citylink and Monash M1 Freeway.
Ceppi said Fitzroys has now sold three Melbourne retail investment properties to SMSF investors in the past two weeks.
"Investors are seeking retail assets across Melbourne with strong fundamentals in large numbers. This will likely continue in line with the low interest rate that is expected to remain long-term," said Ceppi. 
Fitzroys recently sold Shops 19-20, 190 Jells Road in Wheelers Hill for $2.4 million to a SMSF investor at a 5.2% yield, with a 10+5+5-year lease to renowned hair salon Rokk Ebony Properties.
That followed the sale of 2-6 Copernicus Crescent, Bundoora, also a high exposure quality café investment, which was bought by a SMSF investor for $2.6 million at a 5.5% yield and with a 5+5-year lease.
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Café investment at Melbourne's Botanicca Corporate Park sold for $1.7 million

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EXPERT OBSERVER
Melbourne has negotiated the difficult post-boom correction phase and is now clearly in recovery mode.
The turn-around in overall fortunes in the Melbourne metropolitan area since the middle of 2019 has been characterised by a noticeable improvement in auction clearance rates and recent evidence of a revival in price growth.
Many Melbourne suburbs still have median house prices below the levels of 12 months ago, but in the most recent quarter their medians have risen.
And the latest generalised data for Melbourne suggests the city overall now has pricing levels higher than a year ago. SQM Research has Melbourne houses up 2% in annual terms, while CoreLogic reports a rise of about 1%. Both those sources report solid rises in latest month, both for houses and for apartments.
A standout feature has been the resilience of suburban unit markets in 2019: many Melbourne suburbs have recorded substantial decreases in their median house prices but rises in their median apartment prices.
The official statistics show that first-home buyers overall are more active now than at any time in the past eight years - and many young adults opt for the apartment lifestyle, rather than a house on land - and not just because it’s cheaper.
So demand for affordable apartments stayed relatively strong in 2019 at a time when demand for houses was weak. 
The price differential - in many Melbourne suburbs the median price for apartments is roughly half that for houses - has been a factor.
But demographic factors have also been influential. Not only do many young adults prefer apartments, but downsizing retirees are buying units and townhouses, while migrants flooding into Melbourne are often coming from cultures where attached dwellings are the norm.
For all these reasons, many apartments markets in suburban Melbourne have remained solid during the post-boom correction - and look poised for further growth.
At the same time, there has been strong demand for houses in good suburbs, but listings have been low.  Despite the onset of Spring and the increasingly positive market news in mainstream media, vendors have been strangely reluctant to come to the party. The downturn in the construction of new dwellings has been an additional factor.
The imbalance between supply and demand has been a factor in lifting clearance rates and median prices - and many forecasters are tipping strong performance in 2020.
SQM Research’s Louis Christopher in his Boom and Bust report, is forecasting price growth of up to 15% for Melbourne in 2020. SQM’s growth predictions for 2020 are modelled on different scenarios of what might occur over the next 12 months, based on changing market fundamentals and controls.
The base scenario – which would keep the cash rate unchanged at current lows of 0.75%, no intervention from banking regulator APRA, a recovering economy and a healthy Australian dollar – sees property prices rise 7% to 11% nationally through 2020.
But Melbourne is expected to exceed this with price growth of 14-15%, taking property values to new highs.
Other forecasters, including Commonwealth Bank and HSBC, are also tipping significant growth in major Australian cities in 2020, with Melbourne at the high end of the growth list.
In making selections for Hotspotting’s new edition of Top 5 Melbourne Hotspots, I have highlighted areas that have shown resilience during the downturn, have offerings that are affordable to mainstream buyers and have solid credentials for long-term, sustainable price growth.
The Darebin LGA precinct provides a good example: it has suburbs that continue to evolve through gentrification in good locations, with attractive proximity to the CBD and other big employment nodes.
Houses are relatively affordable and apartments particularly so. Vacancies are very low, as rental demand is consistently strong, and long-term capital growth rates are good. Yields are above average for Melbourne.
Similar arguments could be made for the Moreland and Moonee Valley municipalities which also feature in the new edition of our Melbourne report.
Brimbank and Wyndham make up the top five.
Overall, it’s a good time to be considering real estate investment in Melbourne and we expect 2020 to be a vibrant year for markets in the Victorian capital.
Terry Ryder is the founder of hotspotting.com.au
<a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a>
twitter.com/hotspotting
 
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Melbourne's Darebin in hotspot recovery mode: Hotspotting's Terry Ryder

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One of the most highly-anticipated skyscrapers of our decade, <a href="/buildings/australia-108-southbank-70-southbank-boulevard-southbank">Australia 108</a>, has just achieved yet another construction milestone, reaching its peak core lift height of <a href="/buildings/australia-108-southbank-70-southbank-boulevard-southbank">100 levels</a>.

The <a href="/architects/fk-australia">Fender Katsalidis</a>-designed building is the sister tower to its neighbouring Eureka Tower, which Australia 108's building slab height surpassed earlier this year.  

This remarkable construction feat undertaken by <a href="/builders/multiplex">Multiplex</a> required a series of new building techniques to be developed explicitly for the project due to the unique nature of its design. An example of this is the purpose-build platforms which were installed for builders to install the 12-tonne golden trusses on to create the striking Starburst feature.

<a href="/developers/world-class-global">World Class Global</a> CEO David Ng explains that the unique golden feature will become an iconic hallmark of the Melbourne city skyline. 

<blockquote>
"The arrival of Australia 108's golden Starburst is a distinctive moment in the transformation of Melbourne's skyline for decades to come. I think many Melburnians will look back one day and struggle to remember a time when this golden star wasn't twinkling on our cityscape.”
</blockquote>

<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/screen_shot_2019-11-28_at_3.30.47_pm.png" rel="gallery-all" title="Australia 108. Credit: Aspial - World Class Land"><img alt="" class="image-article-full-width-580px" height="876" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2019-11-28_at_3.30.47_pm.png?itok=TinNkvy-" title="Australia 108. Credit: Aspial - World Class Land" width="580"></a>

<figcaption>Australia 108. Credit: Aspial - World Class Land</figcaption></figure><h2>Construction facts at a glance:</h2>

<ul>
<li>The Starburst is made up of 24 trusses (15 metres by 3.3 metres)</li>
	<li>Extensive groundworks took ten months to complete</li>
	<li>Bored piles reach 47 metres underground</li>
	<li>Interiors are slated for completion early next year</li>
	<li>The entire tower is likely to be completed mid-2020</li>
</ul>
<blockquote>
"The installation of the Starburst is a key milestone in the delivery of this iconic tower, and we're delighted to have completed it safely and to an exceptional standard of quality. "It's a very proud moment for the entire Multiplex team to see Australia 108 and its Starburst now standing tall on the Melbourne skyline."
</blockquote>

Graham Cottam, Multiplex Regional Managing Director 

Currently, residents on lower levels of the tower have moved into their new homes, and have access to Level 11 facilities. These <a href="/project-updates/australia-108-amenities">amenities</a> include a fully-equipped gymnasium and pool, a golf simulator, movie theatre and dining room. 

<h2>Other updates:</h2>

<ul>
<li>Over the next few months, owners of the premium Cloud Residences (Levels 72 to 83) will be allowed to move into their homes. </li>
	<li>A new release of 3-bedroom Cloud Residences is now available for sale.</li>
</ul>
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Olivia Round

Australia 108 reaches 100th floor and achieves new construction milestone 

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The Melbourne CBD commercial property market has performed strongly over 2019, continuing its momentum from the preceding year and setting record capital value rates and sharp yields, said Colliers International. 
According to its data, the Melbourne CBD market has performed exceptionally well year-to-date with a total of 12 middle market assets having transacted between $10 million - $100 million as at October 2019. 
Total transaction volume of sales is approximately $475 million averaging a capital value rate of over $15,000 and a sharp yield of 2.67%.
Daniel Wolman, Colliers International National Director of Melbourne City Sales, said the office investment market had been fuelled by the record low vacancy rate of 3.3%, one of the lowest vacancy rates we have experienced since 2008. 
“This has translated into the continued rise in rents and capital values, leading to further compressions of yields,” Wolman said. 
“We are seeing more and more local add-value players competing for high quality middle market assets within the Melbourne CBD. 
“The shortage of stock has also led to institutional players entering the $10 million - $100 million price bracket which is not traditionally explored by institutions.” 
Whilst the number of transactions decreased from 2018 and then remained steady throughout 2019, initial yields have demonstrated a strong downward trend with capital value rates creeping upwards, averaging $15,000 per square metre. 
The most recent sale of Swann House, 22 William Street, Melbourne demonstrates a sharp yield of 2.55%, in which sub 3% yields are becoming increasingly common place. 45 Exhibition Street, Melbourne which transacted in April 2019 showed a record high capital value rate of $17,562 and a yield of 1.33%. 
“The Reserve Bank of Australia cash rate cut to the current 0.75% has arguably fuelled the confidence of the commercial investment market, providing for a lower cost of borrowing coupled with an increase in appetite for quality commercial property offerings from investors and add-value players,” Colliers’ Oliver Hay said. 
“We anticipate this trend to continue throughout the rest of 2019. The extremely tight nature of middle market assets within the Melbourne CBD, coupled with the record low cash rate and positive investment sentiment will continue to fuel and provide a strong foundation for 2020.”
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Melbourne CBD office investment set to end year on a high

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EXPERT OBSERVER
With the property markets in Sydney and Melbourne projected to reach new peaks by the end of 2020, it’s back to ‘square one’ for housing affordability. There is also likely to be a new tipping point as well as potential for the reintroduction of macroprudential measures by APRA.
According to RiskWise’s latest Risks &amp; Opportunities Report, Sydney and Melbourne were highly likely to be the top performing markets in Australia next year, well ahead of any others.
It also means both Sydney and Melbourne would be back to ‘square one’ when it came to housing affordability and undersupply of family-suitable properties relative to demand driven by population increases, the biggest (recurrent) issue in the Australian property market since mid-last decade.
And it could spark the reintroduction of macroprudential measures by APRA if ‘speculation’ by investors rises and increases the risk to the financial stability.
New peaks are expected in Sydney and Melbourne with additional peaks reached thereafter more frequently until the market reaches a new tipping point.
This is the point where consumer confidence in relation to house price materially decreases, houses are severely unaffordable for owner-occupiers and investors’ out-of-pocket expenses will mean they are beyond their tolerance point especially with low rental returns.
Obviously the key question is when the new tipping point will be. We’re not expecting one in 2020 but without regulatory intervention there will be one.
He said RiskWise projected strong price increases across a large number of areas in Sydney and Melbourne in the short term, and particularly the long term, thanks to a good (while a somewhat deteriorating) employment market and strong population growth, particularly in Melbourne.
The RBA’s interest rate cuts (the most recent one in October 2019 with the possibility of a further one in the first half of 2020), some loosening of credit restrictions, significant improvement in buyer confidence and increased auction clearance rates provide very strong indications regarding these markets, he said.
Buyer sentiment in relation to housing measures has noticeably improved and the Westpac-Melbourne Institute’s House Price Expectations and Time to Buy a Dwelling Indices show a consistent trend. Auction clearance rates have also recovered and are largely above 70 per cent in Sydney and Melbourne.
As we predicted immediately after the election and in our previous Risks &amp; Opportunities Reports, the market has materially improved with affordable areas that have shown resilience recovering well. Other areas, including lucrative ones that experienced strong price reductions, are now leading the way to this recovery.
However, he said a significant reduction in dwelling commencements would continue to create a problem of undersupply of family-suitable properties in high-demand areas, while there was also a high level of supply of rental properties in some areas.
September ABS dwelling approvals showed a 32.6 per cent drop in Sydney and a 30.3 per cent in Melbourne.
These imbalances are a major issue with a very material impact on dwelling prices particularly those unsuitable for families, he said.
In addition, a sustained period of ultra-low interest rates and, consequently, a significant increase in housing finance, is highly likely to see a rise in investor activity. Sydney and Melbourne have the largest concentration of investors and an increase in their activity will have a major impact on dwelling prices.
However, he said it was possible APRA would consider the reintroduction of macroprudential measures if increased investor activity contributed to double digit growth.
A new tipping point is reached when properties become very unaffordable for owner-occupiers and the out-of-pocket costs for investors become so high, they cease investing. Banks will also become more risk aware and apply additional rules and requirements to ensure serviceability.
Obviously, if APRA reintroduces tighter lending restrictions, this is highly likely to have a negative impact on price increases, potentially not only in Sydney and Melbourne but also other areas of the country.
Interest rate reductions have significantly improved serviceability of both owner-occupiers and investors. However, with low economic growth and effective unemployment above the ‘full employment’ target, it is possible that without a material change to the fiscal policy, the RBA will cut interest rates again during 2020 to 0.5 per cent.
Since moving through a trough in May, the value of new owner-occupier home loan commitments has increased by 17.3 per cent through to the end of September and the value of investor loan commitments is up 8.4 per cent.
Population growth continues to be strong in Sydney at 1.8 per cent, and unemployment sits at 4.3 per cent. In Melbourne population growth is 2.5 per cent (the highest in the country), and unemployment 4.8 per cent.
The latest ABS data on new housing credit also shows a sharp rise in the value of home loan commitments, driven by a surge in owner-occupier lending as well as a smaller rise in investment lending.
APRA is watching the housing market closely, particularly given record-low interest rates, high household debt and signs of some revival in borrowing for speculative purposes.
It should be noted that strong investor activity is perceived by the RBA as ‘speculation’ that increases the risk to the financial stability. Consequently, a major increase in investor activity is likely to trigger the reintroduction of macroprudential measures by APRA.
RiskWise is now working on specific modelling to estimate the tipping point.
DORONG PELEG is the CEO of <a href="http://www.riskwiseproperty.com.au" target="_blank">RiskWise Property Research</a>
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When is the next tipping point for residential property in Sydney & Melbourne: RiskWise's Doron Peleg

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Urban's Display Suite Walkthrough series started with a look at the <a href="/news/urbans-tour-of-the-shelley-st-display-suite">Shelley Street display suite</a> in Richmond. Today, our second tour of the series features FOCUS by Central Equity in Melbourne’s Southbank. The Urban team were able to visit the display before it was deconstructed in time for construction to commence. 

<div class="rtecenter">Check out our video tour:</div>

<div class="rtecenter"> </div>

<div class="rtecenter"><iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/qDiYoOxsxoU" width="660"></iframe></div>

FOCUS AT A GLANCE

Developer: Central Equity

Architect: Doig Architecture

Location: 75 City Road, Southbank

Number of apartments: 592

Construction slated to begin: Nov 2019

<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/focus_kitchen_light_types_a_k.jpg" rel="gallery-all" title="FOCUS by Central Equity"><img alt="" class="image-article-full-width-580px" height="363" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/focus_kitchen_light_types_a_k.jpg?itok=ScX68IO_" title="FOCUS by Central Equity" width="580"></a>

<figcaption>FOCUS by Central Equity</figcaption></figure>After 30 years in the industry, and 75 residential projects delivered, Central Equity has now embarked on the construction of their latest project, FOCUS Melbourne. 

Situated in the heart of Melbourne’s Southbank, the sought-after location is likely to be a drawcard for buyers who want to live in the epicentre of one of the world’s most liveable cities.

Just a stone's throw from Melbourne’s Arts Precinct, residents will be able to enjoy exploring the city by foot, with theatres, the National Gallery of Victoria (NGV), music venues, 5-star restaurants and Universities within walking distance.

FOCUS Melbourne boasts impressive amenities, including a 17-seat luxe movie theatre; an expansive barbecue and social dining area; as well as lifestyle facilities including a pool, gymnasium and sauna.

For added comfort and liveability, each apartment features openable windows, which facilitate natural airflow throughout the residence. This is complemented by the state-of-the-art reverse cycle air conditioning system in each home.

The design also considers the impact of city-noise on the residences by assessing the sound-proofing of all glazing, walls, and insulation. Acoustic engineers have been engaged from the beginning of the design process to ensure optimum resident comfort.

Central Equity General Manger Ian Carkeek explains that double glazing is important for environmental reasons, cost-effective thermal control and sound attenuation.

<blockquote>
“Our latest designs have 2.7m high ceilings and full-height windows, letting in natural light, and importantly all those windows are double glazed, which means better energy efficiency, lower energy bills and better acoustic properties – and acoustics are very important.”
</blockquote>

Ian Carkeek, General Manager – Product Design, Central Equity

The apartment kitchens feature composite stone benchtops, LED feature lighting, soft-close cabinetry, Miele stainless steel appliances, high-quality German tapware, externally ducted range-hoods and innovative storage solutions. Buyers will also be invited to customise their apartments with a wide range of floorplan layouts to choose from.

Special offer: For a limited time, qualifying buyers could save $20,000-$52,000 in government stamp duty.

While the display suite is no longer open for tours as construction has already commenced, you can <a href="/buildings/focus-melbourne-81-city-road-southbank">reach out to the Central Equity sales agent</a> via Urban at any time.
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