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.

<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/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

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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Melbourne CBD’s office market is on an upswing, with vacancy rate at its lowest in five years, but a pause is likely before the second leg kicks in at the turn of the decade, according to BIS Oxford Economics.
The Victorian capital’s office market posted impressive results through 2016. The CBD vacancy rate fell by 140 bps to 6.4%—its lowest level since 2012—net effective rents increased by 14% and capital values surged almost 20% higher. 
The positive momentum is continuing this year and the trend is far from over, says the forecaster. However, it won’t be all smooth sailing and a looming slowdown in demand lies ahead coinciding with a spike in new supply, it said.
A similar trend was witnessed in the <a href="/expert-insights/investing/melbourne-city-fringe-office-vacancy-rate-declines-colliers">city fringe market</a> as well, with vacancy rate dropping to 3.47 percent in March from 4.96 percent in September 2016, according to a separate report by Colliers International.
“This is the lowest vacancy rate that Colliers International has ever recorded for the City Fringe market, and is the outcome of strong demand and very low levels of supply," said the Colliers report.
Last year’s strong run in the CBD market meant average prime net effective rents rose nearly 20% above post-GFC lows, while aggressive yield compression pushed values a 90% higher, said BIS Oxford Economics. That puts average prime values around 50% above pre- GFC peak levels. 
After a high like this, one might expect a muted outlook for the market. But BIS Oxford Economics expects further gains of more than 60% in prime net effective rents and almost 50% growth in values to a peak in the early 2020s. 
However, senior project manager and report author Maria Lee has a caveat.
“It won’t be smooth sailing through the upswing. In particular, Victoria faces several headwinds that are likely to cause economic growth to slow over the next few years, with a negative impact on the demand for office space,” Lee said. 
This slowdown in demand is likely to coincide with a substantial quantum of new supply coming on to the market. 
Six major towers are currently under construction in the CBD, with work on two more likely to begin shortly. These will be completed from the second half of 2018. 
Although substantially pre-committed, there is an as-yet uncommitted component which will result in considerable back-fill space becoming available, according to the forecaster.
The impact of these coming changes to the demand/supply balance would be more like a pause in the upswing rather than an end to the trend. 
“Melbourne retains a key affordability advantage over its northern neighbour and competitor, Sydney. This will help to insulate Melbourne somewhat from the negative impacts of the closure of the Hazelwood power station, the end of car manufacturing and a coming downturn in residential construction. For a national company looking to expand its back-office functions, the scales are tipped in Melbourne’s favour,” Lee said. 
The rental differential with Sydney is only set to increase over the next few years, according to BIS Oxford Economics, with Sydney’s CBD rents set to surge as the vacancy rate gets extremely tight for an extended period. 
Once Victoria has emerged from the challenges of the next few years, BIS Oxford Economics expects that Melbourne’s inherent advantages of plenty of skilled labour, a cheap and plentiful supply of land for residential, industrial and commercial building, and lower rents will come to the fore and support the second leg of the upswing. 
“Any near-term weakness should not discourage market participants from the longer term prize” concludes Lee. 
 
 
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jonathanchancellor-7SQnKwU6yx

Melbourne’s office market vacancy lowest since 2012, but slowdown likely: BIS Oxford Economics

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Treasurer Scott Morrison's Budget focusses on freeing up more land for building homes as part of the measures to address affordability issues in major capital cities.
As part of the move to free-up Commonwealth land, 127 hectares of defence land in the Melbourne suburb of Maribyrnong would be earmarked to allow for 6000 new houses, according to the Herald Sun. The suburb is just 10 km north of the city.
The median house price in Maribyrnong was $940,000, while for units it was $460,000, according to www.realestate.com.au which cited CoreLogic RP Data.
The range of measures announced in the Budget include working with states and territories to reform planning and zoning laws, and setting up a $1 billion National Housing Infrastructure Facility to “address infrastructure chokepoints that are impeding housing development in critical areas of undersupply”.
The decision to unlock defence land for housing development comes amid rising affordability in and around the Melbourne CBD and adds to the state government's earlier measures to ease the situation.
Aside from that, regional Victoria is also set to benefit from a $472 million growth fund to help communities adapt to the changes economy.
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j.ballantyne1990-6AQqhLzZaK

Budget 2017 to free up defence land in Melbourne's Maribynong for 6,000 homes

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Victorian shopping centres are emerging as the asset of choice for Chinese investors, with the sale of Arena Shopping Centre in Melbourne for $48 million being the latest transaction. 
Over the past 15 months, Chinese investors have spent more than $380 million buying shopping centres across Victoria – highlighting the ongoing strength in investment appetite for well-located assets backed by strong tenancy profiles, according to commercial real estate firm CBRE.
Arena Shopping Centre is located in the south-east suburb of Officer.  
It is anchored by a 4,100 sqm Woolworths Supermarket and BWS on a 20-year lease.
It is positioned on a 2.97 ha site, and has 25 specialty retailers as well as a freestanding McDonald’s and Caltex Service Station.
The centre generates an annual income of $2.65 million per annum and the initial yield works out at 5.38%.
<a href="https://www.propertyobserver.com.au/images/2017/04/27/MELBRetail.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/27/MELBRetail.png" alt="">
The sale was brokered by CBRE with the limited supply of neighbourhood shopping centres being offered to the market underpinning strong sale results. 
 
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Chinese investor snaps up Melbourne shopping centre for $48 million 

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The office vacancy rate in Melbourne's city fringe locations fell to 3.47 percent in March from 4.96 percent in September 2016, according to Colliers International’s Metro Office report.
“This is the lowest vacancy rate that Colliers International has ever recorded for the City Fringe market, and is the outcome of strong demand and very low levels of supply," said the report.
More than 23,000 sqm of office space was absorbed in the year to March 2017, about 9,000 sqm higher than the long-term annual average net absorption rate.
"While creative type tenants have always been attracted to the City Fringe market, tenant take up was seen across a variety of industry types, including National Home Doctor Service (Health), Grey Innovation (Technology), BSGM (Construction) and The Promotions Factory (marketing/manufacturing),” the report stated.
<a href="https://www.propertyobserver.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%2012.38.21%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/2017/05/02/Screen%20Shot%202017-05-02%20at%2012.38.21%20pm.jpg" alt="">
Colliers says that it’s not surprised that these strong demand levels and reduced options for tenants in the city fringe has given rise to good rental growth – both face and effective.
“Effective rents grew a record 22.7 percent in the year to March 2017. This effective rental growth is made up of a 13 percent rise in face rents, and a significant reduction in average A Grade incentives from 21 percent to 14 percent."
The secondary grade market is also benefiting from this strong demand with rents growing by 10 percent year on year, with incentives now averaging 18 percent.
Incentives in both the prime and secondary grade markets are low by Melbourne-wide standards (the CBD is averaging 29 percent), indicating the popularity of the city fringe market with tenants.
Owners of secondary grade stock have been taking advantage of the strong market conditions and, where space does come vacant, refurbishing their stock to attract the growing number of tenants who want non-conventional office space in the most sought after city fringe locations.
"The owners of Building 8, 658 Church St and 570 Church St in Richmond have recent leasing success stories following significant vacancy and subsequent refurbishment of their buildings,” the report said.
<a href="https://www.propertyobserver.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%2012.38.30%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/2017/05/02/Screen%20Shot%202017-05-02%20at%2012.38.30%20pm.jpg" alt="">
Both buildings were fully let post upgrade works, with incoming tenants paying significantly more rent than the outgoing tenants in order to secure the space.
It is expected that over the remainder of 2017 and into 2018, rents will continue to rise, Colliers says.
“Following the record rental growth over the year to March 2017, we expect that effective rental growth over the year to March 2018 will be 7.5 percent. While lower than the rate we have seen in this past year, this is still well above the long term average growth rate of 4.7 percent per annum.
"Developers, however, have been taking notice of the increase in demand, and the next supply cycle is well and truly underway."
There are currently 17 buildings in planning/mooted stage in the city fringe, a far cry from previous years where residential development dominated the landscape.
A total of 111,500 sqm is planned for construction to 2020, and a further 89,000 sqm in the ‘mooted’ stage.
The next year of supply will be relatively modest, with 10,500 sqm due to complete, said the report.
However, over 2018 and 2019, approximately 95,000 sqm of new supply will come on to the market, according to Colliers.
<a href="https://www.propertyobserver.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%2012.38.43%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/2017/05/02/Screen%20Shot%202017-05-02%20at%2012.38.43%20pm.jpg" alt="">
“It is anticipated that at this point in the cycle, incentives will begin to rise.
"Interestingly, the City Fringe market will also reach an important milestone over the next supply cycle– it will become a million square metre market.
There is currently just over 965,000 sqm of office stock in the City Fringe, and by the middle of 2019 we expect supply to tip over the 1,000,000 sqm mark."
The long-term average vacancy rate for the city fringe is 6.2 percent.
"We expect the vacancy rate to stay well under this level until March 2020, when large chunks of supply will tip the vacancy rate up to 7.7 percent,” the report stated.
Colliers says that the Melbourne CBD will also be in the midst of a supply cycle at this time, which will place further pressure on landlords to do competitive deals.
Strong demand in the city fringe hasn’t been confined to the leasing market. Of the $1.37 billion of deals in the Melbourne Metro market in 2016, 70 per cent - or $967 million worth of sales – were transacted on city fringe assets.
"Unsurprisingly, this level of activity had an impact on yields, and we saw 100 bps of compression over the year to March 2017."
A Grade yields now average six per cent in the city fringe.
"Current yield spreads of 327 bps are above the long-term average spread of 315bps, so we expect there is still room for yield compression in this cycle, particularly given the strong leasing conditions,” said the report. 
As an example, Property Observer found a 267 sqm penthouse-level office at <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-502375694">Level 11, 552 Lonsdale Street</a>, Melbourne (above) listed for sale.
Similarly, a 3153 sqm office at <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-502349974">114-128 Flinders Street</a>, Melbourne (below) has been listed for sale.
<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/2017/05/02/114-128%20Flinders%20Street.jpg" alt="">
A 79 sqm office at <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-501693013">Suite 4.04, 838 Collins Street</a>, Melbourne (below) was recently sold in April this year.
<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/2017/05/02/Suite%204.04%20838%20Collins%20Street.jpg" alt="">
Similarly a 291 sqm freehold office at <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-502333430">21-23 Anthony Street</a>, Melbourne (below) was recently sold in April this year.
<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/2017/05/02/21-23%20Anthony%20Street.jpg" alt="">
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Melbourne city fringe office vacancy rate declines: Colliers

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Two warehouses in Melbourne’s Preston have been snapped up for $2.2 million.
The properties at 22 &amp; 24 Eton Street in Preston’s industrial commercial precinct have a combined building area of 1,092 sqm.
They sale price reflects a building rate of $2,014.65 per sqm, demonstrating a strong demand for similar properties in the area. 
The buyer intends on using one as an investment with a return yield of 4.86 percent whilst the other to potentially owner occupy, according to selling agent Leo Mancino of CVA.
Each property features a high clearance warehouse, two level air-conditioned office, motorised container height RSD, 3 on-site car spaces and first floor balconies. 
The properties are close to transport and shops.
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Two warehouses in Melbourne's Preston change hands for $2.2 million

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The Melbourne based property developers Asian Pacific Group are rebranding.
Founded by sixth and seventh generation members of the Deague family, it will now operate as Deague Group.
The family claims a property development tradition in the state that dates back to 1859.
W. Deague was responsible for the early works of St. Paul’s Church in Bendigo, while W.H. Deague building the tallest chimney in Victoria in 1872 and soon after the Royal Bank of Bendigo.
<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/2017/04/20/David%20Will%20and%20Jonathan%20Deague.jpg" alt="">
CEO of Deague Group, Will Deague, said that the move acknowledged the family’s historical roots in the industry after patriarch David Deague rebranded to Asian Pacific Group in 1992.
“We’re proud of our strong family roots in the building trade, tracing back to the mid 1800s,” he said.
“Our new brand and name is a nod to our ancestor’s achievements and cements a vision for future generations to continue on the legacy and uphold the strong family values.”
The group is involved in hotel, commercial and residential developments, such as the $100 million development of Howard Smith Wharves in Brisbane, Kings Business Parkin Melbourne’s inner suburbs, and the Whitehorse Towers apartment tower,
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Asian Pacific Group rebrands as Deague Group

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Sydney developer Crown Group has entered Melbourne residential market, partnering with with Melbourne developer G3 for a 170-apartment project in Southbank.
The 175 Sturt Street site spans 2,070 sqm.
It is close to Crown Melbourne casino and hotel complex.
It will accommodate a mixed-use luxury resort-style development with ground floor retail, the Australian Financial Review reported.
"We've been strategic in our expansion interstate and this is the right time to expand to Melbourne. I would not be surprised if this is the first of a number of successful developments outside Sydney," said Crown Group chairman and chief executive Iwan Sunito.
"We hope we can set a new benchmark in apartment living in Melbourne and in other states, like we have in Sydney."
He set aside concerns about off-the-plan sales in Melbourne slowing, saying the right location would always sell.
"Depending on the location, Melbourne is still a very promising market, particularly the arts precinct, there is strong demand but not enough supply in that area," he said.
"While we continue to see enormous potential in Sydney, Melbourne is carving its own place among the top international cities in the world. Melbourne is highly regarded internationally for its liveability and we foresee a strong local demand for high-quality apartments with resort-style amenities in Melbourne."
The developer unveiled its $400 million development Waterfall in Sydney late in 2016, and said it had received strong expressions of interest ahead of its launch.
The development is scheduled for completion in 2019. 
"I would not be surprised if stage one of Waterfall sold out as there is a strong demand from local buyers wanting to live closer to amenities," he added.
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Sydney's Crown Group steps into Southbank, Melbourne residential market 

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Bali-via-Melbourne womenswear brand Mister Zimi has leased prime retail space in Melbourne’s South Yarra for its latest boutique.
The shop at 555A Chapel Street will be label’s fourth outlet.
The lease for the shop which has an area of 121 sqm, was negotiated for $145,000 per annum plus GST and outgoings. It was signed for four years with options for another four.
The deal was brokered by Jordan Ceppi of Fitzroys, who said the strong rental and long-term lease achieved in the prime section of the iconic retail strip demonstrated the confidence businesses have in Chapel Street’s future prospects.
“A label of the calibre of Mister Zimi selecting Chapel Street for its next site is the latest show of faith that the precinct is on its way up,” said Ceppi.
The Chapel Street shop will be the husband-and-wife run label’s fourth outlet, following Melbourne sites in nearby suburbs Armadale and Albert Park, as well as Byron Bay.
The business grew from a leather jacket designed by Zoe Paul and handmade by a local tailor on a trip to Bali with her husband Jimi in 2007.
The Pauls established the label in 2008 and relocated to Bali in 2010 to focus on their business. Designs are a fusion of Australian and Balinese influences and feature patterned and exotic prints, and offer inter-seasonal dresses, swimwear, footwear and accessories. Each is created individually, catering to individual needs, look and body type.
As well as having grown to four stores, the label has a strong social media following, with more than 123,000 Instagram followers and 42,500 Facebook page likes.
“The local residential population has continued to boom and is underpinning the future upside of the strip, led by the nearby Forrest Hill project that is home to nearly 4,000 residents and has seen around $2 billion worth of construction take place,” he said.
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Fashion label takes lease in Melbourne's Chapel Street

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Melbourne, which was perched at approaching the peak of the office market in valuation firm Herron Todd White's April update, continues to have the second lowest vacancy rate amongst all of Australia’s CBDs.
According to the Property Council of Australia’s Office Market Report, Melbourne CBD’s office overall vacancy rate has improved from 7% to 6.4% over the six months to January 2017.
A net absorption of 109,612 square metres in the CBD was recorded in the six months to January 2017 and a total of 40,246 square metres of new stock is due to enter the market in 2017. 
The decline in vacancy rate is mainly due to the second highest net demand figure on record (excess of three times the historical average) with positive demand particularly concentrated in the A grade segment. Eastern Core, Docklands and Flagstaff precincts have the lowest vacancy rates at 3.1%, 3.3% and 3.7% respectively while negative demand was concentrated in the Civic and North Eastern precincts where vacancy rates both rose. 
With strong tenant demand and restricted supply, we are witnessing improving effective rents with CBD incentives beginning to shift down in certain sub markets. However, leasing incentives continue to be relatively high with 25 percent to 30 percent net incentives being offered for longer lease terms across larger tenancies. 
Due to the statutory valuation in 2016, the 2017 Land Tax Assessments have come as a shock for many CBD and city fringe landlords. A large number of 2017 land tax assessments have increased substantially compared to 2016 which could have a significant impact on value, particularly when the tenancy profile is on a gross rent basis or when tenancies are subject to the Retail Leases Act, in which case land tax is non-recoverable. 
“We have witnessed land tax for some CBD sites more than double or even triple last year’s land tax,” say HTW in their report. 
The increases in land tax have significantly impacted landlords’ projected cash flow, especially if properties are tied up with long-term gross or retail leases. The effect of this increase is only now being felt as 2017 assessments were only released in January. There are very few transactions in 2017 and in any case, buyers may be going off 2016 assessments. 
For the St Kilda Road precinct, there have been significant withdrawals of office accommodation over the past couple of years as many developers are buying existing older style office buildings with the view to converting or redeveloping them for residential purposes. This reduction in stock and displacement of tenants has given a slightly false take on the market, as tenant demand is still way off historically high levels pre-GFC.
The market has also seen a flight to quality, with A grade buildings performing better than their B grade counterparts. Owners investing in the building services and end of trip facilities are being rewarded by a reduction in the letting up periods and stronger rents. In the past 12 months, incentives peaked at 32 percent, however, are now moving back down.
Due to the Melbourne Metro rail project, traffic along St Kilda Road will be severely restricted for the coming two to three years. Discussions with local leasing agents reveal that some existing tenants are attempting to take advantage of this situation by using it as a lever for better deals on renewals, particularly around negotiating shorter lease terms.
St Kilda Road will potentially always be a strong market for smaller tenants, but for the larger tenants (1,000 square metres plus) the market may be more challenging and must remain a cost effective option to overcome the threat of the CBD, Docklands and Southbank markets. This may put a ceiling on rental growth for the foreseeable future and at least for the duration of the major tunnel works. 
On the buy side, strong demand is continuing for good quality office properties within the Melbourne CBD, Metro and St Kilda Road office markets. This is primarily due to the lack of suitable stock and sheer weight of capital seeking limited investment opportunities in this segment of the market.
Assets in the $10 million to $40 million price point are expected to continue to appeal to a broad range of private investors, syndicates and self-managed super funds. Institutional buyers typically start at circa $50 million.
The CBD office market was off for a hot start in 2017 with the record breaking sale of Bourke House, 179-183 Bourke Street, which was sold to a mainland Chinese investment corporation for $33 million in March, representing a low yield of 4.3 percent and a capital value rate of approximately $20,000 per square metre. The sale also reflects a 287 percent capital gain since its last sale of $11.53 million in 2014. 
<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/2017/04/21/BourkeHouse.jpg" alt="">
Deep pocket buyers are less focused on leasing risk, WALES and capex risk because they are more focused on location and securing assets in a limited opportunity market. Leasing risk and capex risk are considered transient risks which can be mitigated. 
On the other hand, demand is very strong for strata office floors in the CBD. This is seen as a way to gain a foothold in the CBD as some buyers struggle to afford freehold CBD properties. 
“We are also witnessing some buyers are accumulating multiple floors within the same building. “
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Melbourne has second-lowest vacancy rate among Australia’s CBDs: HTW

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Melbourne private treaty properties take, on average, a month to sell once listed on the market, according to CoreLogic’s latest report.
The property data firm says that Melbourne homes take around 29 days to be sold while units takes 30 days.
This is slightly slower than Sydney where houses and units are currently being sold by estate agents within 27 days.
<a href="https://www.propertyobserver.com.au/images/2017/05/01/Screen%20Shot%202017-05-01%20at%2012.23.39%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/2017/05/01/Screen%20Shot%202017-05-01%20at%2012.23.39%20pm.jpg" alt="">
Darwin places last with houses taking 87 days to sell while units take 76 days to sell.
Similarly Perth houses and units takes around 82-83 days to be sold.
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