<p>One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.</p>

<p>Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.</p>

<p>The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.</p>

<p><img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" /></p>

<p>Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.</p>

<p>Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.</p>

<p>The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.</p>

<p>Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.</p>

<p>The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.</p>

<p>That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.</p>

<p>The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.</p>

<p>"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.</p>

<p><img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" /></p>

<p>Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.</p>

<p>The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.</p>

<p>The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.</p>

<p>According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.</p>

<p>The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.</p>

<p>A significant component of the proposal is the revitalisation of Blue Street Plaza.</p>

<p>The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.</p>

<p>Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.</p>

<p>Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.</p>

<p>Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.</p>

<p>Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.</p>

<p>The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.</p>

<p>Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.</p>

<p>&nbsp;</p>

<p>FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.</p>

<p>Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.</p>

<p>Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.</p>


Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

<p>Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.</p>

<p>The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.</p>

<p>The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.</p>

<p>The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.</p>

<p><img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" /></p>

<p>The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;</p>

<p>PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.</p>

<p>The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.</p>

<p>Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.</p>

<p>"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.</p>

<p>Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.</p>

<p>A major focus of the design has been the public domain.</p>

<p>The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.</p>

<p>The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.</p>

<p data-end="239" data-start="66">Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.</p>

<p data-end="442" data-start="241">Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.</p>

<p data-end="661" data-start="444">Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.</p>

<p data-end="909" data-start="663">Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a></em></p>

<p data-end="1339" data-start="1019">Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.</p>

<p data-end="1339" data-start="1019">[smartcode_project:default project_id=30959 project_image_fid=292863]</p>

<p data-end="1398" data-start="1341">It has since quietly assembled its next wave of projects.</p>

<p data-end="1805" data-start="1400">Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.</p>

<p data-end="1805" data-start="1400">[smartcode_project:default project_id=152095 project_image_fid=373685]</p>

<p data-end="1991" data-start="1807">The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.</p>

<p data-end="2303" data-is-last-node="" data-is-only-node="" data-start="1993">Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a></em></p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a></em><br />
&nbsp;</p>

<p>&nbsp;</p>

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<p>&nbsp;</p>


First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

<p data-end="492" data-start="327">Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.</p>

<p data-end="843" data-start="497">At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.</p>

<p data-end="1109" data-start="848">The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.</p>

<p data-end="1109" data-start="848">[smartcode_project:default project_id=152022 project_image_fid=375528]</p>

<p>Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.</p>

<p>The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.</p>

<p>"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375531]</p>

<p>The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.</p>

<p>The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375524]</p>

<p>Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.</p>

<p>Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375530]</p>

<p>The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.</p>

<p>The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.</p>

<p>The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.</p>

<p>"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.</p>

<p>"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."</p>

<p>Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.</p>

<p>[smartcode_project_cta:default project_id=152022]</p>


Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

<p>Not all apartment amenities are immediately visible.</p>

<p>Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.</p>

<p>Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.</p>

<p>Online shopping has been one of the biggest drivers of that shift.</p>

<p>Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.</p>

<p>For apartment residents, however, receiving those deliveries isn't always straightforward.</p>

<p>Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.</p>

<p>Australia Post's Parcel Locker network is one response to that shift.</p>

<p><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/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe></p>

<p>Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.</p>

<p>The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.</p>

<p>That growing presence reflects a broader change in how apartment buildings are being planned.</p>

<p>Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.</p>

<p>It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.</p>

<p>For buyers comparing apartments, these everyday details are becoming part of the decision-making process.</p>

<p>Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.</p>


Parcel delivery is joining the apartment amenity checklist

<p data-end="471" data-start="164">Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.</p>

<p data-end="777" data-start="473">The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.</p>

<p data-end="976" data-start="779">Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.</p>

<p data-end="1119" data-start="978"><a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.</p>

<p data-end="1399" data-start="1121">"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.</p>

<p data-end="1399" data-start="1121">"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."</p>

<p data-end="1605" data-start="1401">The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.</p>

<p data-end="1852" data-start="1607">The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.</p>

<p data-end="1852" data-start="1607"><img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" /></p>

<p data-end="2031" data-start="1854">Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.</p>

<p data-end="2299" data-start="2033">"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.</p>

<p data-end="2588" data-start="2301">Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.</p>

<p data-end="4143" data-start="3991">Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.</p>

<p data-end="593" data-start="417">Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.</p>

<p data-end="789" data-start="598">New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.</p>

<p data-end="1053" data-start="794">IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.</p>

<p data-end="4143" data-start="3991"><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a></em></p>

<p data-end="4143" data-start="3991"><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a></em></p>


First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

Office

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<p>The retail and office space at 3/146-152 Cleveland St, Chippendale was the cheapest sale of the weekend.</p>
<p>It fetched $160,000 through Richardson &amp; Wrench Surry Hills having been listed with $150,000 plus hopes.</p>
<p>Its size was 21 square metres.</p>
<p>The retail/office benefited from main street exposure but also had internal landscaped courtyard entrance.</p>
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Chippendale office cheapie sells for $160,000

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<p>There was a record $533 million of metropolitan Brisbane office transactions in the first half of this year, according to Colliers International.</p>
<p>Colliers’ <em>Competitive Rivalry: Office Versus Residential in Metro Markets</em> report found foreign investors re-emerging over the first half of the year and acquiring $254 million worth of assets.</p>
<p>For instance, Southpoint was purchased for $200.6 million by Union Investment Real Estate.</p>
<p>There were a total of 11 sales during the period, with two foreign companies acquiring the biggest assets, explained director of capital markets for Colliers, Jason Lynch.</p>
<p>“Domestic buyer groups comprised REITS and unlisted institutions which bought up $205 million worth of metro office assets, with the remainder being private investors and property groups,” Lynch said.</p>
<p>“In the last three months there has been an increased amount of Asian investor interest looking to reweight their capital into our CBD and metro markets. A Grade assets, particularly those with long lease terms and good quality tenants are highly sought after.”</p>
<p>But he notes that the issue facing investors at present is a lack of supply.</p>
<p>“The feasibility of developing new large office developments is diminishing due to increasing land values driven primarily by the improved residential apartment market and the CBD’s competitive position with respect to rents and incentives,” he said.</p>
<p>Despite this, forecasts are steady for the Brisbane market.</p>
<p><img src="/images/2014/11/05/chart%20nov%205%20one.jpg" alt=""></p>
<p><em>Source: Colliers International</em></p>
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Brisbane metro office market heating up: Colliers International

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<p>The Adelaide CBD office vacancy rate will hit 15% next year with prices and and effective rents in decline until the end of the decade, according to research firm BIS Shrapnel.</p>
<p><span style="line-height: 1.3em;">The oversupply of office space meant </span><span style="line-height: 1.3em;">Adelaide office buildings are overvalued, said BIS Shrapnel in its </span><em style="line-height: 1.3em;">Adelaide Commercial Property 2014 to 2024</em><span style="line-height: 1.3em;"> report.</span></p>
<p>“Prospective internal rates of return over a five-year investment horizon are less than 3%.</p>
<p>“Against this backdrop, the current weight of investment funds pushing down yields doesn’t make sense,” the r<span style="line-height: 1.3em;">eport author Maria Lee said.</span></p>
<p><span style="line-height: 1.3em;">The most recent sale by German fund SachsenFonds sale of Adelaide office </span>complex<span style="line-height: 1.3em;"> to the Lend Lease-managed Australian Prime Property Fund’s for $175 million last month, came despite the negative forecast backdrop, the <em>Australian Financial Review</em> reported</span></p>
<p><span style="line-height: 1.3em;">It also noted 100 Waymouth Street was fully leased, 108 North Terrace (75% leased) and 169 Pirie Street (60% leased) with</span><span style="line-height: 1.3em;"> 70 Franklin Street which was speculatively built by the Kyren Group being 75% committed</span><span style="line-height: 1.3em;">.</span></p>
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Falling yields in Adelaide office market "doesn't make sense": BIS Shrapnel

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<p><span style="line-height: 1.3em;">Savills, in the 12 months to September 2014, identified 29,989 square metres of leases in the Parramatta market. </span></p>
<p><span style="line-height: 1.3em;">This was up 55% on the 12 months prior, and up on the five year average (22,860 square metres).</span></p>
<p><span><strong>Parramatta office leases to September 2014</strong> </span></p>
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</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Tenant </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Feb-14 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>25 George St, Parramatta </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>1,300 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>400 G </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Careers Australia </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Feb-14 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>91 Phillip St, Parramatta </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>426 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>350 N </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Knight Frank </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>May-14 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>426 Church St, Parramatta </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>815 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>305 N </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Community Connections </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>May-14 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>110 George St, Parramatta </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>528 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>335 N </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Government Property NSW </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Aug-14 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>169 Macquarie St, Parramatta </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>26,000 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>na </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>University of Western Sydney </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Sep-14 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>91 Phillip St, Parramatta </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>940 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>na </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>KPMG </span></p>
</div>
</div>
</td>
</tr>
</tbody>
</table>
<div class="layoutArea">
<div class="column">
<p><span style="line-height: 1.3em;">Net absorption of 1,737 square metres was recorded in the Parramatta market in the 12 months to June 2014.</span></p>
<p><span>With only 675 square metres of A Grade available space according to the latest Property Council of Australia (PCA) <em>Office Market Report</em>, Savills says any future demand for prime buildings will likely be soaked up by well positioned secondary grade assets in the short-term, as there are no new major developments under construction. </span></p>
<p><span>This is forecast to continue placing downward pressure on the overall vacancy rate in the Parramatta office market and further reinforcing the need for development of new space in the market. </span></p>
<p><span>Net face rents in Parramatta as at September 2014 typically range between $350 and $450 per square metre per annum for A Grade buildings, and between $265 and $340 per square metre per annum for secondary grade buildings. </span></p>
<p><span>The average A Grade face rent in Parramatta is $400 per square metre per annum, a 7% increase over the last 12 months.</span></p>
</div>
</div>
</div>
<div class="page" title="Page 5">
<div class="layoutArea">
<div class="column">
<p><span>As a result of the University of Western Sydney committing to 1PSQ, Government and Community was the dominant sector <span><span> in the Parramatta office market in the last 12 months</span></span>, accounting for 95% of the stock, or 28,623 square metres o<span>f the 29,989 square metres leased</span>. Similarly, the largest number of transactions was through the Government and Community sector (four transactions).</span></p>
<p><span>The latest PCA <em>Office Market Report</em> shows that the overall vacancy rate in Parramatta decreased by 0.8 percentage points over the 12 months to June 2014 and currently sits at 6.7%. Parramatta vacancy has experienced a downward trend since July 2010, where vacancy was as high as 10.8%. </span></p>
<p><span>Over the last 12 months, A Grade vacancy in Parramatta fell by 2.2 percentage points to an all time low of just 0.2% (675 square metres). This reflects a decline of approximately 5,539 square metres of available space over the period. However, the PCA recorded an increase of 18,600 square metres in total A Grade stock due to a regrade of buildings over the same period. B Grade vacancy in Parramatta recorded an increase from 5.3 % to 9.5% over the last 12 months. </span></p>
<p><span>With no new office supply expected in Parramatta until 2016, coupled with limited A Grade offerings in the market, strong demand in the precommitment market is expected, as well as a tangible benefit to the secondary market in the short-term. </span></p>
</div>
</div>
<br><table>
<colgroup>
<col>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Grade </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Stock (sq m) </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Vacancy (sq m) </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Vac % Jun-14 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Vac % Jun-13 </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>A Grade </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>273,617 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>675 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>0.2 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>2.4 </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>B Grade </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>212,026 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>20,182 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>9.5 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>5.3 </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>C Grade </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>104,972 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>19,234 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>18.3 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>17.2 </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>D Grade </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>97,413 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>6,096 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>6.3 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>9.0 </span></p>
</div>
</div>
</td>
</tr>
<tr>
<td>
<div class="layoutArea">
<div class="column">
<p><span>Total </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>688,028 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>46,187 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>6.7 </span></p>
</div>
</div>
</td>
<td>
<div class="layoutArea">
<div class="column">
<p><span>7.5 </span></p>
</div>
</div>
</td>
</tr>
</tbody>
</table>
<br><div class="layoutArea">
<div class="column">
<p><span> </span></p>
</div>
</div>
</div>
</body></html>

Parramatta has downward pressure on office vacancy rate: Savills

<html><body>
<p>With all the attention on Chinese Melbourne CBD development site acquisitions, one of the low-key Melbourne CBD sales this year has been the office block, 50 Queen Street.</p>
<p>Last sold in 2007 at $31 million, it has been sold at $40.7 million by Centuria Property Funds Limited.</p>
<p>Coweley Queen Pty Ltd, a subsidiary of the foreign based company Coweley Limited, purchased the property.</p>
<p>Coweley Limited is directed by Sydney locals, Klaus Knoblauch and Craig Stuckey, in conjunction with the Roquebrune Cap Martin, France based, but Paddington, Sydney born director Peter Ranger and the Switzerland based Massimo Pedrazzini.</p>
<p>The property was part of the Becton Office Fund No. 2 which Centuria took over in September 2010, at which time the property valuation was $26.5 million.</p>
<p>The off market sale price was 25% in excess of the latest 31 December 2013 independent valuation.</p>
<p>Its 2007 sale was marketed as a 16-level, 34 year old B-grade building.</p>
<p>The building, at the corner of Flinders Lane, is about 9650 square metres and is occupied by several small tenancies.</p>
<p>Set at the corner of Flinders Lane, it was offloaded in 2007 by Singaporean investor George Chow, who paid $13.4 million in October 1991.</p>
<p>Back in the late 1980s when on the books of the Capita Prime Property Fund (formerly the City Mutual Property Trust), the office block had a $22 million valuation.</p>
<p>Centuria Property Funds latest sale was an office tower in St Kilda Road to the ­property arm of the Dymocks group for $82.1 million.</p>
<p>Centuria acquired 441 St Kilda Road in 2012 for $58 million on a single investor mandate.</p>
</body></html>

50 Queen Street, Melbourne office tower sold

<html><body>
<p class="Normal">Demand for residential property is leading to an increasing number of secondary office buildings being converted into apartments despite the challenges posed by repurposing commercial buildings.</p>
<p class="Normal">Converting some commercial properties to residential uses was like “trying to squeeze a square peg into a round hole”, Colliers International director of project marketing residential Curtis Field told <span class="Normal__Char" style="font-style: italic;">Property Observer</span>.</p>
<p class="Normal">“What works for commercial office buildings, like having lift wells in the centre of the building, may not work for residential,” said Field, who spoke on the topic at the Retrofit and Refurb conference in Sydney last week.</p>
<p class="Normal">Compromises may have to be made in turning a commercial floor plan into residential apartments, as contestants in reality TV show <em>The Block Glasshouse</em> have discovered.</p>
<p class="Normal">Ceiling heights can be a problem because commercial buildings are designed as offices, not residences. It might also be difficult to obtain adequate light and ventilation for each apartment.</p>
<p class="Normal">“It’s sometimes really hard to meet those planning requirements,” Field said, adding that it was becoming less of an issue to overcome the problems and the benefits usually outweighed the challenges.</p>
<p class="Normal"><span class="Normal__Char" style="font-weight: bold;">Benefits worth the challenges</span></p>
<p class="Normal">Converting an existing office building to residential uses meant developers could often achieve larger apartment buildings than if they were seeking approval for a new structure, Field said.</p>
<p class="Normal">“That happens in the CBD where an office was allowed to be 10 to 12 storeys tall but if you knocked that building down you might not be able to get planning approval to construct a new building to that height,” he said. “You’re getting something that could not be constructed now.”</p>
<p class="Normal">Another plus for developers was that there was less impact on the local community and neighbours could not complain about issues such as loss of views if the building was already in place.</p>
<p class="Normal">“If you talk to builders about converting a building that’s already there they say it doesn’t save on construction costs but from a time table point of view you don’t have six months of demolition and then 12 to 18 months of heavy construction. It’s really a fit out job,” Field said.</p>
<p class="Normal">“From a sales point of view you can see the building and what views you are going to get where off-the-plan is hard to visualise,” Field said.</p>
<p class="Normal"><span class="Normal__Char" style="font-weight: bold;">Factors facilitating conversions</span></p>
<p class="Normal">Changes to zoning and heritage restrictions have been allowing developers to convert commercial buildings to residential uses, which previously would not have been permitted.</p>
<p class="Normal">“We are seeing that in industrial zoning like in South Sydney which used to be industrial,” Field said.</p>
<p class="Normal">Secondary commercial properties in the CBD and elsewhere could deliver higher returns on investment if converted to apartments when zoning permitted, Field said.</p>
<p class="Normal">“Milsons Point in Sydney is a classic example where commercial tenants were attracted back to the city, North Sydney and North Ryde which made those buildings almost obsolete because the costs to upgrade outweighed the return you would get from commercial tenants whereas they have become highly desirable as residential,” he said.</p>
<p class="Normal">Superannuation fund CBUS is working on the conversion of Vibe Hotel at 88 Alfred Street, Milsons Point, which it bought earlier this year for about $80 million, to between 130 and 140 residential apartments.</p>
<p class="Normal">The superannuation fund also owns a commercial building at 130 Elizabeth Street opposite Hyde Park in central Sydney, which recently received stage 1 development approval to be converted to apartments.</p>
<p class="Normal">Foreign investors have bought buildings on the Hyde Park fringe and while many are commercial investments now, Field said they were being repositioned as residential development opportunities because of their views.</p>
<p class="Normal">Singaporean investors have development applications before council on 227 Elizabeth Street with plans to develop 140 apartments in the building, which overlooks the Hyde Park.</p>
<p class="Normal">Elsewhere in Sydney, Chinese investors bought 286 Sussex Street in late 2013 with plans to convert the vacant office building to residences. The Goldfields House commercial building at 1 Alfred Street was bought by US and Dutch investors for residential conversion.</p>
<p class="Normal">Field estimates there is between 110,000 and 180,000 square metres of commercial floor space in Sydney earmarked for conversion to residences over the next five years.</p>
<p class="Normal">A separate report by JLL Research estimated that nationally, 46,940sqm of office property was withdrawn for residential development in 2013 – up from 25,794 the year before.</p>
</body></html>

zfielding-GvX3Uq9KTa

Office conversions to residences on the rise

<html><body>
<p>The underlying demand for office markets fell in August 2014 to just 125,000 square metres nationally, according to BIS Shrapnel’s latest statistics.</p>
<p>The decline that had been expected by BIS Shrapnel has seen underlying demand remain modest in recent quarters and far below the long-term average.</p>
<p>The 10-year average demand is 660,000 square metres.</p>
<p><img src="/images/2014/10/1/Picture%2018.png" alt=""><br><br><em>Source: BIS Shrapnel</em></p>
<p>Net absorption may, however, improve, according to senior project manager Maria Lee.</p>
<p>“Underlying demand is usually a lead indicator of net absorption (the change in occupied floorspace from one period to the next). We haven’t yet seen the improvement in underlying demand after the slump in 2013 fully feed through to net absorption. As such, we should see net absorption move back into positive territory by the end of 2014,” said Lee.</p>
<p>She noted that underlying demand is expected to pick up in the November 2014 quarter as the November 2013 data drops out of the calculation.</p>
<p>Employment, obviously a key data set for individual industry areas, has seen property and business services rebounding, a decline in public administration and safety, and stability in the financial and investment services sector.</p>
</body></html>

Demand for office space falls across August: BIS Shrapnel

<html><body>
<p>Those expecting an uptick in the office market across 2014 and 2015, particularly in terms of tenant demand, will not be disappointed, according to DTZ’s forecast.</p>
<p class="Default">DTZ’s latest Sydney CBD Offices research alert notes that even in their most severe downturn scenario, the net absorption rate remains positive, though well below baseline.</p>
<p class="Default">However, this will be a slow and steady situation with out-performance not expected. Risks are also expected to continue, with a prospective financial crisis in China as a result of unsustainable credit growth in their property sector.</p>
<p class="Default">When the supply cycle closes in 2017/2018, tenant demand is forecast to push rents up from 2% to 5% depending on the forecast scenario. Late 2016 will start to see the situation become neutral for tenants, while the present environment offers them the choice of the market.</p>
<p class="Default">Property Council of Australia figures are already pointing to a shift. For instance, over the two and a half years to the first half of 2013, net absorption was 37,000 square metres. However, in the 12 months to the first half of 2014, net absorption totaled 57,000 square metres due to a resurgence in the IT sector.</p>
<p class="Default">Office supply, however, is one of the biggest aspects of the Sydney market analysis provided by DTZ. With large scale additions and withdrawals from the market, the timing is crucial in determining the performance of the market. Supply is expected to strongly increase, with more than 700,000 square metres planned for between 2015 and 2018, which exceeds the long-term 140,000 square metre per annum average. This is due to large projects, such as International Towers Sydney and George Street-located projects.</p>
<p class="Default">The number of offices set to be permanently removed from the market is also noted, as they undergo redevelopment into residential and even hotel offerings – often by offshore purchasers.</p>
<p class="Default">They record almost 275,000 square metres of secondary-grade office space which is expected to be removed from the office market over the medium term, all for alternate uses. You can see their locations on the map below. Much of this appears to be in mid-town.</p>
<p class="Default"> <img src="/images/2014/09/24/chart-sept-24-one.jpg" alt=""></p>
<p class="Default">In Sydney, developers are looking to get a foothold in the profitable residential market, snapping up lower grade stock for this purpose.</p>
<p class="Default">Just last week, <em>Property Observe</em>r reported that <a href="/expert-insights/investing/cities-facing-imminent-shortage-of-office-development-sites-colliers">Colliers International’s latest reports forecast cities Australia-wide facing an imminent shortage of office supply due to these redevelopments</a>.</p>
<p>Despite this, 303,000 square metres of additional stock is expected between the second half of 2014 and the end of 2018, while the outlook remains stronger than in recent past years.</p>
<p>“In line with the baseline forecasts, tenant demand is expected to increase and diversify beyond its current limits of the IT and Telecommunications sector, as economic recovery gathers momentum,” the DTZ report explains.</p>
<p>Vacancies are expected to remain at a range between 8% and 11.3%, even as rents grow. The resurgence, it appears, is in its infancy.</p>
</body></html>

Sydney's office market can withstand even worst scenario: DTZ

<html><body>
<p>The Make-A-Wish Foundation children's charity has listed its Richmond office for 16 October auction.</p>
<p>It is a double-storey office at <a href="https://www.realcommercial.com.au/property-offices-vic-richmond-501298851" target="_blank">383 Swan Street in Richmond</a>, with 565 square metre office space on a 405 square metre block opposite Burnley train station.</p>
<p>The inner east holding is tipped to sell for about $3 million through <span style="line-height: 1.3em;">Colliers International.</span></p>
<p><span style="line-height: 1.3em;">It includes six car parks.</span></p>
<p>Make-A-Wish is moving to a larger Richmond rented premises.</p>
<p>They bought the property in 2004 for $1.35 million.</p>
<p>In July, another inner city charity, the Smith Family, sold its Collingwood offices to property developers to also become a tenant. </p>
</body></html>

Make-A-Wish list Richmond offices

<html><body>
<p>Australia is about to face a shortage of office development sites, according to a new report.</p>
<p>Colliers International’s <em>Competitive Rivalry: Office Versus Residential in Metro Markets</em> report suggests that increased appetite for residential development is now driving the metropolitan office markets.</p>
<p>In most metropolitan markets the demand is heating up, said John Marasco, Colliers International managing director of capital markets and investment services. He noted that developers are increasingly building residential properties on land previously earmarked for office developments.</p>
<p>“This is increasing competitive pressure on land values across metropolitan office markets, at the same time as demand from investors for office investments continues,” Marasco said.</p>
<p>“Zoned sites and existing commercial buildings are being converted to residential at an increasing rate, and in metropolitan markets this had led to minimal new development of office buildings. This increased competition has resulted in a tightening in yields for most eastern seaboard markets, following the similar trend witnessed in CBD office markets on the east coast.”</p>
<p>Nationally, new development supply of office space to the metropolitan market is recorded by Colliers to be at 124,996 square metres in 2014. In 2015, this figure is 100,963 square metres, with Victoria and Queensland driving the supply through 2014 – adding up to 37.6% and 33.6% respectively.</p>
<p>Marasco says that investors are increasingly demanding A Grade metropolitan office assets, particularly noting that institutional investors are expressing interest.</p>
<p>The graph below describes the type of buyers purchasing metro office stock:</p>
<p><img src="/images/2014/09/17/chart%20sept%2017.jpg" alt=""></p>
<p>“Institutional investors remain highly active in the metropolitan office markets, accounting for 69% of total sales volume during the year,” he said.</p>
<p>“Compared to last year, there is a significant shift towards domestic investment in metro markets, in particular domestic institutional investment. Last year, offshore investment in metro markets was driving the lion’s share of investment.”</p>
<p>Attractive yields and occasional development upsides are behind the demand. Marasco said that the hotspots of New South Wales’ Parramatta, Queensland’s Fortitude Valley and Victoria’s Chadstone are on investors’ radars.</p>
</body></html>

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