Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

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]

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

Melbourne

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There is a growing trend for small retail spaces in the Melbourne CBD, according to valuation firm Herron Todd White.
The property investment firm said in a report that there is also a trend of low to medium mixed use properties in the inner ring of Melbourne.
In Melbourne’s CBD and within the 15 kilometre inner ring from Melbourne’s CBD, there are two entry level price categories currently popping up in the retail market, said the report.
“Firstly, within Melbourne’s CBD, there is a growing trend for very small retail spaces to be created in areas that were previously not used for retail purposes," said HTW.
“For example, only late last year, a small 20 square metre cafe known as Saluministi was created in Flinders Lane, in the base of an existing carpark, where a tenant entered in to a new five-year lease at $35,000 per annum on a gross rental.
“Similarly, in Equitable Lane within a narrow space being the former foyer of a commercial building, a new coffee shop known as Heresy was created utilising an area of 22 square metres at a starting annual gross rental of $40,750 per annum."
While these spaces are not yet for sale, they are being created in more inventive, small retail spaces and when made available for sale, are likely to be at prices below $1 million.
“This is an affordable entry level for Melbourne’s CBD and we would expect yields of between 3% and 4% for these assets."
“Secondly, given the trend of low to medium rise mixed use retail/residential developments in the inner ring of Melbourne we are seeing a number of small sub-100 square metre retail premises selling in the current market in these locations,” the report stated.
These properties are either new or currently under construction, according to HTW.
“These isolated retail premises, generally sit below new, or currently under construction, residential apartment complexes and generally offer a food/coffee option for existing and nearby residents in this specific location."
“For example, in one recent off-the-plan sale in Elland Avenue, Box Hill, a 100 square metre retail shell just sold for $600,000 excluding GST. Based on a hypothetical rental of $30,000 per annum net, and after deducting appropriate letting up allowances and adjustments for non recoverable outgoings, this sale price shows a yield of approximately 4.75%."
It said such examples abound in these inner to middle suburban locations and are expected to be available in the foreseeable future.
“At present we are seeing yields in the order of 4% to 5% for these small retail orientated strata assets."
“The lower price retail sector of the Melbourne market is performing well and we expect this trend to continue in the short to medium term,” the report said.
A retail corner property at <a href="https://www.realcommercial.com.au/property-retail-vic-collingwood-502356550" target="_blank">9-15 Little Oxford Street</a>, Collingwood (above) has been listed for sale.
 
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j.ballantyne1990-6AQqhLzZaK

Melbourne CBD sees a growing trend of small retail spaces: HTW

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The Melbourne residential auction market remains positive for most sellers despite slowing over recent weeks according to Domain's Andrew Wilson.
He said Melbourne auction numbers will be lower this weekend with the mid-winter market pause to gather momentum over the coming month.
"Melbourne is set to host over 900 auctions this Saturday which will be down on last weekend’s 983 listings but similar again to the 901 auctioned over the same weekend last year," he said.
"Melbourne’s western suburbs are again the most popular for auctions this weekend with 149 listed.  Next highest region is the inner east with 132 followed by the inner south with 125, the outer east 119, the north east 113, the inner city 100, the north 85 and the south east with 57 auctions scheduled.
"Craigieburn is the most popular suburb for auctions this Saturday with 16 followed by Reservoir and Glen iris each with 15 and a number of suburbs with 13 auctions scheduled including Glen Waverley, South Yarra and Hawthorn."
 
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jonathanchancellor-7SQnKwU6yx

Melbourne residential auction market remains positive

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Most indicators suggest that Melbourne has moved into first place as the city creating the most jobs and growth.
That said, the New South Wales Treasurer handed down a 2017-18 Budget yesterday revealing that the state's finances are in rude health.
Each month I've been tracking the unprecedented stamp duty take resulting from Sydney's property boom, a gift which has kept on giving.
It was reported yesterday that the state beat projections in 2016-17 to hit another surplus of $4.5 billion, with NSW now in a negative net debt position, boasting a net worth totalling more than a quarter of a trillion dollars, and with enough left over to set up a $15 billion Future Fund.
To complete the virtuous circle the state now plans to unleash a towering $72.7 billion spend on infrastructure, incorporating an impressive range of projects, a further record $7.7 billion for health infrastructure, and $4.2 billion to build 26 new schools and to fund upgrades.
This is a positive move for Sydney, and the harbour city will need to get these projects moving to fill the hole left by any coming downturn in the rate of apartment building.
Melbourne vacancies keep falling
We seem to have reached an inflection point in this property cycle.
Lower interest rates spurred record numbers of property investors into the market since 2012.
But now regulators and banks are winding back interest-only loans and have introduced tougher serviceability measures and higher mortgage rates for investment products.
And this is at a time when demand for rentals has never been higher, with employees changing roles and locations more frequently than in times past, and a record boom in international visitors and students.
While the rate of dwelling construction has been impressive, I recently mused <a href="https://petewargent.blogspot.com.au/2017/06/is-sydney-heading-for-rental-crisis">here</a> whether the number of available rental properties will keep up with demand this year and next. 
Vacancy rates declined across much of Australia in May, with the national vacancy rate dropping from 2.4 per cent to 2.2 per cent. 
Vacancies remained super-tight in Hobart (0.6 per cent) and Canberra (1 per cent), while in Sydney the vacancy rate declined to just 1.8 per cent. 
Vacancy rates ticked down in Brisbane, Perth, and Darwin in May, though from elevated levels in the case of Perth and Darwin, where median asking rents continue to slide. 
In Melbourne the vacancy rate is almost in freefall, halving from more than 3 per cent at the end of 2014 to a 7-year low of just 1.5 per cent.  
Inflation impact?
SQM's asking rents index shows rents already rising for apartments in Sydney (up 3.5 per cent over the year to June 20), and quite sharply for apartments in Melbourne (up 5.9 per cent).
<a href="https://www.propertyobserver.com.au/images/2017/06/22/SQM1-1.jpg" target="_blank">Click to enlarge</a>
<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/2017/06/22/SQM1-1.jpg" alt="">
The vacancy rates figures suggest that rental prices may soon level off in the resources capitals, while there is mounting evidence of a tightening rental market in the two most populous capital cities.  
If rents do start to rise again then this has implications for monetary policy since rents form an important part of the consumer price index (combined with rising energy prices, a strengthening rental market could be enough to scope out further rate cuts). 
On the other side of the ledger, oil prices have declined to their lowest level in 9 months. 
Overall, the figures suggested that the rental markets in the weakest cities are approaching their cyclical nadir, while most other markets ex-Brisbane are either tight or tightening. 
Most notably, the feared oversupply in Melbourne has not materialised - if anything the number of available rentals is failing to keep pace with demand. 
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>.
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Melbourne vacancies crash to a 7-year low

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Real estate fund manager EG Funds Management has recently sold a business park from the Core Plus Fund No. 1 portfolio in Melbourne’s Mount Waverley for $76.3 million.
The Gateway Business Park is located at 495-501 Blackburn Rd. The property currently has two tenants, Leica Biosystems and Metricon Homes, on long-term leases.
Its net lettable area (NLA) is more than 22,000 sqm and includes several offices, a laboratory, and warehouse and storage facilities.
EG bought the property in 2014 for $63 million. 
After a number of unsolicited approaches, EG said it made a “strategic decision to divest the property to capitalise upon strong cap rate compression and market appetite for quality product offering future upside”. 
The asset was purchased by FIFE Capital, a Sydney-based alternative asset manager.
The deal was brokered by Chris O’Brien, Rory Hilton and Kiran Pillai of CBRE.
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EG sells business park in Melbourne for $76 million

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Melbourne led the rise in median house prices across Australian capital cities for the March quarter, according to the latest research from industry body the Real Estate Institute of Australia. 
Weighted average median prices rose by 2.9 percent for houses and 2.5 percent for other dwellings.
Over the quarter, Melbourne had the largest increase in both the median price for houses, 7.6 percent and for other dwellings, 3.8 percent. 
The weighted average median price for houses for the eight capital cities increased to $763,892, according to REIA Real Estate Market Facts for the March quarter 2017.
REIA president Malcolm Gunning said the median price was driven by increases in Melbourne and Sydney and, to a lesser extent, in Darwin. “The weighted average median price for other dwellings increased to $587,290, again driven by median price growth in Melbourne and Sydney and, to lesser extent, in Perth, Canberra and Hobart,” are said.
“Median house prices decreased in Brisbane, Adelaide, Perth, Canberra and Hobart and, median prices for other dwellings decreased in Brisbane and Darwin.”
Median rents for three-bedroom houses rose in Sydney, Melbourne, Brisbane, Adelaide, Hobart and Canberra with Hobart leading with an increase at 5.7 per cent. Perth and Darwin experienced decreases. 
Median rents for two-bedroom other dwellings increased in most capital cities with the largest rise in Hobart at 7.5 percent. In Melbourne and Perth, median rents for other dwellings remained steady while it fell in Darwin.
The weighted average vacancy rate for the eight capital cities remained steady at 2.9 percent during the March quarter. In most capital cities, the vacancy rates either remained steady or increased/decreased by 0.1 percentage points. 
“The vacancy rate ranged from a high of 7.1 percent in Darwin to a low of 1.7 percent in Canberra, which had the tightest rental market for the quarter. With a rise of 0.1 per cent, Perth was the only capital city to see its vacancy rate increase,” Gunning said. 
 
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Melbourne drives rise in median house price: REIA 

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Fractional property investing platform BrickX has added a terrace home in Melbourne’s Brunswick West to its portfolio for investors to buy ‘bricks’.
Pre-orders start June 23 at $99 a ‘brick’ for the property at <a href="https://www.brickx.com/properties/BRW01/summary" target="_blank">10 Shamrock Street</a>.
BrickX, which puts properties into an individual trust and split each one into 10,000 units or ‘Bricks’ which investors can then buy, recently launched several properties in Sydney. 
Its previous buy was in Manly. The <a href="https://www.brickx.com/properties/MAN01/summary?utm_source=mailchimp&amp;utm_medium=email&amp;utm_campaign=manly&amp;utm_content=warmup&amp;utm_term=button" target="_blank">4/8 James Street</a> property is a two-bedroom apartment and was offered at an initial 'brick' price of $87.
The company says they were snapped up the same day by investors.
CEO Anthony Millet expects the offering in Melbourne to be popular with investors further, adding to the current Melbourne portfolio of Prahran and Port Melbourne. “We’re thrilled to provide access to such a stunningly transformed terrace at an affordable entry price of just under $100,” Millet said. 
The three-bedroom, two-bathroom terrace with an undercover carport on Shamrock Street boasts a courtyard along with a private rooftop garden off the master bedroom.
The 169 sqm property's selling price was $1,190,000, according to CoreLogic. It was sold through Nelson Alexander Real Estate Brunswick.
It last traded for $371,750 in 2003.
 <img src="https://www.urban.com.au/images/2017/06/21/BrickX.png" alt="">
“With the initial Brick price being $99, BrickX continues to strive to make property investment affordable for all Australians,” said Millet.
Investors earn capital returns and monthly net rental income in proportion to the number of ‘bricks’ they own. Members can choose when to invest and when to exit by offering their ‘bricks’ for sale on its platform. 
CoreLogic head of Research Tim Lawless, who is also an adviser at BrickX, said there is strong demand for property close to the city, university and social precincts. 
Data from the property analytics firm show house prices in Brunswick West have increased by almost 6.6 per cent per year over the past five years.
“Brunswick West has a strong rental market which has contributed to ongoing low vacancy rates and high demand. With convenient tram and train access to the CBD, the area is particularly popular with university students and young families,” he said.
BrickX added three Sydney properties in the last two months — Potts Point, Surry Hills and Darlinghurst. 
This is in addition to properties in Prahran and Port Melbourne in Melbourne and Manly, Bondi Beach, Enmore, Mosman, Annandale and Double Bay in Sydney.
For more details on how to invest, <a href="https://www.brickx.com/" target="_blank">click here</a>.
<a href="https://www.brickx.com/"> </a>
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BrickX launches terrace home in Melbourne’s Brunswick West at $99 per brick 

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The North East region of Melbourne had the cities' highest weekend auction clearance rate, according to CoreLogic’s latest report.
The property data firm says that out of the 109 auctions in the region it scored a clearance rate of 84.4%.
This was followed by the North West with 83.1% and Outer East with 76.9%.
<a href="https://www.propertyobserver.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%2012.26.38%20pm.jpg" target="_blank">Click to enlarge</a>
<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/2017/06/19/Screen%20Shot%202017-06-19%20at%2012.26.38%20pm.jpg" alt="">
A three bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-ivanhoe+east-125545598" target="_blank">27 Wallis Avenue</a>, Ivanhoe East (above) was sold over the weekend for $2.521 million.
Similarly a four bedroom house at two bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-thornbury-125553922" target="_blank">55 Rennie Street</a>, Thornbury (below) was sold for $1.205 million over the weekend.
<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/2017/06/19/55%20Rennie%20Street.jpg" alt="">
Outside of Melbourne a three bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-lima+east-125493622" target="_blank">48 Tulley Road</a>, Lima East (below) was sold over the weekend for $280,000.
<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/2017/06/19/48%20Tulley%20Road.jpg" alt="">
Similarly a four bedroom house on a land parcel at <a href="https://www.realestate.com.au/sold/property-acreage+semi-rural-vic-healesville-125736670" target="_blank">508 Chum Creek Road</a>, Healesville was sold for $791,000 over the weekend.
<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/2017/06/19/508%20Chum%20Creek%20Road.jpg" alt="">
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Melbourne's North East scores 84% auction clearance rate: CoreLogic

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A retail and residential property at Camberwell in Melbourne’s inner east has sold for $1.31 million at auction. 
The <a href="https://www.realcommercial.com.au/property-retail-vic-camberwell-502351846" target="_blank">539 Burke Road</a> property sold well over the vendor’s reserve, said selling agents Fergus Evans and Adrian Boutsakis of Teska Carson.
“This was a property located in a tightly held strip with a low vacancy rate in an area with strong growth potential,” said Evans.
An owner-occupier bought the property with vacant possession. 
The property comprises a solid brick, two-level shop and dwelling of 221 sqm on a 232 square metre site with frontage to Burke Road and rear laneway access. 
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Shop and home in Melbourne’s Camberwell fetches $1.3 million at auction 

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<img src="https://counter.theconversation.edu.au/content/78681/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The closure of the Gatwick Hotel in St Kilda represents a new front in the ongoing gentrification debate in inner Melbourne.
It highlights inconvenient truths about cultural appropriation, heritage as a driver of urban renewal, and the marginalisation of the city’s most vulnerable residents.
Gentrification taps into the fundamental urban planning and social issues facing Melbourne and other big Australian cities in coming decades. In particular, it has impacts on liveability, housing affordability, and social cohesion.
Gentrification has its benefits
Gentrification and the financial investment it represents can be a positive and transformative process for local communities. Better access to education and health services, as well as welcoming, attractive and vibrant streetscapes, are just some of the benefits of urban regeneration.
But, too often, the economic benefits of regeneration are separated from its social impact on existing residents. Rising property prices and rents are inevitable with gentrification. As a result, people on low incomes or who rely on social welfare are forced out as the wealthier middle class moves in.
The adaptive reuse or restoration of heritage buildings plays a key role in this process. Such developments can provide a sustainable and culturally sensitive solution to the challenge of increasing population density in our cities. Nonetheless, the debate on the role and value of heritage buildings is often paradoxical and divisive.
At its simplest, the divide is between those who passionately argue for preserving these buildings for their historical and cultural value, and those who see heritage as an unnecessary restriction on urban development.
Sometimes, the two sides align, as is largely the case with the Gatwick. Those in charge of the building’s redevelopment buy into the benefits of gentrification, with this development creating an opportunity to market luxury apartments at a substantial premium.
Trading on edginess and authenticity
The issues surrounding the Gatwick feed into a much more complex and potentially problematic debate about how we value our urban environment.
The threat to heritage is not destruction of the building itself. It’s the loss of a more intangible and hard-to-commodify aspect: the “collective memory” of stories, folklore and history. This forms the cultural fabric that contributes to the urban character and identity of an area.
The reality of life at the Gatwick was sometimes difficult. But, for decades, it provided a home for those most in need of shelter and safety. In the public consciousness, however, the Gatwick was a potent symbol of the inner city’s social problems: homelessness, drug addiction, prostitution and violent crime.
Local traders, residents and politicians all campaigned for its closure. Even the retail decline of Fitzroy Street was blamed on the hotel’s reputation.
It could be argued, though, that this very notoriety played a pivotal role in moving St Kilda along the path of gentrification. In recent decades, property developers have successfully marketed St Kilda as an edgy – but safe – place to live.
The area’s undeniable heritage, set against the backdrop of drugs, prostitution and a healthy dose of rock ’n’ roll folklore, knits together in an irresistible narrative that feeds the public appetite for “cultural authenticity”. In street after street, elegant but tarnished historic buildings have allowed investors to buy into this local mythology with relative ease.
Those who gave area its character lose out
The bitter irony is that this quest for authenticity has left long-term locals, such as the former Gatwick residents, vulnerable to the pitfalls of gentrification. The narrative, of which they formed an integral part, has moved on. New residents have co-opted the authenticity of St Kilda’s past while rejecting the challenging reality of how these social issues play out locally.
In effect, the very people who arguably contributed most to the local community’s cultural diversity and vibrancy are the first to be excluded. This pattern of appropriation, commodification and finally exclusion is replicated in historic suburbs across Melbourne and other cities.
The producers of Channel Nine’s The Block have bought the Gatwick. Under the TV spotlight, the gritty boarding house will undoubtedly be transformed into stylish and desirable apartments aimed at wealthy buyers.
But what does the future look like for its former residents? By ignoring the impact of urban regeneration on the homeless and vulnerable, are we acknowledging that closing the gap between our wealthiest and poorest residents is an impossible task?
Reducing urban regeneration to a system largely driven by the accumulation of personal wealth, with little or no thought for the profound social displacement that gentrification can bring, risks further marginalising those residents who already have little or no say in the future of our cities.
Gareth Wilson is researcher at the Australian Centre for Architectural History, Urban and Cultural Heritage, University of Melbourne and author for The Conversation.
He can be contacted <a href="https://theconversation.com/profiles/gareth-wilson-378123" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Goodbye to the Gatwick, and to so much of the old St Kilda

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A bayside Melbourne hotel has been snapped up by a Chinese investor for $15.8 million on a tight of yield of 3.3 percent.
It was its second sale in recent times.
Brighton's Marine Hotel at <a href="https://www.cbremelbourne.com.au/properties/199-217-new-street-brighton/" target="_blank">199-217 New Street</a> was bought a year ago by BRW Rich Lister Giuseppe "Joe" Catalfamo from another well-known property family, the Zagames, for $13 million, according to titles records, The Australian Financial Review noted.
The present transaction translates to a 21.5 per cent capital return for Catalfamo, a former meat industry veteran. Catalfamo was 190th on the BRW list with a wealth of $373 million.
The Brighton hotel stands on a prominent corner and is set on an expansive 4,670 sqm land holding.
The leased hotel had a current net income of $533,540 pa. It has a five-year net lease ending next year, with 25 years of further options. There are fixed annual increases of 3 percent.
It is close to the bustling Church Street shopping precinct and Brighton Yacht Club.
The Chinese private investor is understood to have paid in cash, and the deal pips another recent pub deal in bayside Albert Park, according to the AFR. 
The Beach Hotel was sold for $17.1 million on a 4.1 percent yield to an offshore Chinese purchaser
CBRE brokered the Marine Hotel deal along with Vinci Carbone's Joseph Carbone and Frank Vinci.
In April, another Chinese investor paid bought the Arena Shopping Centre in Melbourne’s south-east suburb of Officer for $48 million. That deal was also brokered by CBRE.
The recent deals highlight the strength in investment appetite for well-located assets backed by strong tenancy profiles.
The centre generates an annual income of $2.65 million per annum and the initial yield works out at 5.38 percent.
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