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

Joel Robinson

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

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

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

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

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

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

The apartment price gap drawing Sydney buyers west

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

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

Perth

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It was a 50/50 split in Perth's affluent Peppermint Grove in the December quarter, according to the latest CoreLogic RP Data Pain and Gain report.
The research firm only recorded two home sales in the local government region in the final quarter, with one loss and one profit-making sale.
The vendors of <a href="https://www.realestate.com.au/property-apartment-wa-peppermint+grove-117769579" target="_blank">5/22 Stirling Street</a> (pictured below) in Peppermint Grove lost out on their November sale. The unit sold for $380,000, $15,000 less than their December 2011 purchase price of $395,000.
<img src="/images/2015/04/24/peppermint%20grove%20april%2024%20one.jpg" alt="">
The property's price reached its peak in 2009, when it traded for $415,000. Since 2007, the unit has been used as a rental property. In September 2007, it was advertised to rent at $320 per week, but in late 2008 its advertised rental rate descended to $300 per week. It's now rented out for $380 per week, with it selling in November at a 5.2% yield.
While CoreLogic RP Data only recorded two sales  in Peppermint Grove for the December quarter, a search through listings reveals more, including the sale of <a href="https://www.realestate.com.au/property-house-wa-peppermint+grove-117961647" target="_blank">46R Irvine Street</a> (pictured below), which sold in November. The home sold for $2.5 million, with the vendors paying $1.68 million in 2005.
<img src="/images/2015/04/24/peppermint%20grove%20april%2024%20two.jpg" alt="">
While Peppermint Grove's low sales volumes gave it the highest proportion of loss-making sales for the quarter, as recorded by CoreLogic, other regions had many more happy vendors. In the south-eastern region of Canning, which includes Cannington, Parkwood, Queens Park, Shelley and Wilson, only 1.4% of home resales made a loss.
Those that did make a loss had an average hold period of 1.9 years, with a median loss of $14,000. For profit-making sales, the average hold period was 9.5 years, with a median profit of $298,000. In total, Canning vendors made $87.4 million in the December quarter.
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Mixed result in Perth's Peppermint Grove: CoreLogic RP Data

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There is no argument that the market has slowed since Christmas however this can be wonderful news for people looking to sell their current property to upgrade to a bigger and better home.
Right now there are approximately 14,000 properties on the market which is around 40% more than this time last year so upgraders do have a larger selection to choose from however many a worried that they won’t achieve a good price for their current property.
The brutal truth is that an upgrader may need to accept less on their current property but there is little doubt they will enjoy a parallel discount on the one they buy and this is when the sums really add up in their favour.
In an example where 12 months ago, a person was selling a $500,000 property to upgrade to one worth $800,000, the gap was $300,000. Today, in the slower market, although they may have to take $480,000 for their existing home they are now more likely to buy that $800,000 home for $760,000 reducing the gap to $280,000 and saving them $20,000.
It’s also very relevant that when the market slows the dearer properties are hit hardest while the cheaper homes, up to around $600,000 continue to sell readily as that is where the buyers are most prevalent.
The secret is to not look at selling and buying in isolation but to instead consider the whole changeover package and by doing so it can often be found that selling to upgrade in a slower market is an advantage rather than a disadvantage.
Geoff Baldwin is managing director of <a href="https://www.remaxwa.com.au/" target="_blank">RE/MAX Western Australia</a>.
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Slower Perth market creates opportunity for upgraders: Geoff Baldwin

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Commercial property in West Perth, an area dominated by resource-related businesses, is in the doldrums as the downturn in mining investment hits the market.
Vacancy rates in the suburb climbed to 10.9% in January 2015 from 9.2% in July 2014, according to the Property Council of Australia.
Colliers International estimates that vacancy rate equates to 46,117 square metres of unoccupied commercial space in West Perth at the beginning of 2015.
<img src="/images/2015/03/25/perth-mar-25-four.jpg" alt="">
<img src="/images/2015/03/25/perth-mar-25-five.jpg" alt="">
A quick search on realcommercial.com.au of for lease listings in the area reveals more than 950 offices available. Numerous listings are advertising rent cuts and attractive lease terms.
Two properties on Hay Street, one at 1141 and the other at 1133, are advertising “massive” rent reductions, asking for rents that equate to just $195/sqm. The advertisements for the 317sqm and 460sqm offices declare: “ALL OFFERS CONSIDERED. OWNERS WANT THE PROPERTY LEASED YESTERDAY. YOU WILL NOT BE DISSAPOINTED WITH THE LEASE TERMS THAT ARE ON OFFER”.
Another property at 8 Parliament Place is available now asking just $150/sqm for a fully fitted out 399sqm office on a sub-lease.
Those asking rents represent a dramatic drop compared with 2011 and 2012 levels.
Average face rents for full-floor A Grade premises in West Perth have fallen to between $400/sqm and $475/sqm from around $550/sqm in late 2011 to early 2012, according to Colliers’s analysis. Offices in B Grade buildings are leasing for $350/sqm to $400/sqm, down from almost $500/sqm three years ago.
Savills’ Spotlight on West Perth, released in February, says net effective rents – which take into account incentives such as rent-free periods and assistance with fit-out costs – are even lower.
<img src="/images/2015/03/25/perth-mar-25-two.jpg" alt="">
<img src="/images/2015/03/25/perth-mar-25-one.jpg" alt="">
Incentives in the West Perth office rental market sit at around 30%, with landlords using a range of tactics to attract tenants in the slowing market.
“Incentives [are] now at such a level that the majority of fit-out costs can be covered,” Savills notes in its report.
A 463sqm office suite in Ventnor Avenue advertised for lease on realcommercial.com.au is offering a year’s free rent.
The average net effective rent for an A Grade property was $289/sqm in December 2014, down 26% compared with December 2013, Savills’ research shows. Net effective rents in A Grade buildings range from $254/sqm to $333/sqm net, and in secondary grade buildings from $210/sqm to $245/sqm net.
<img src="/images/2015/03/25/perth-mar-25-three.jpg" alt="">
The lower rents and higher incentives are being offered in response to weakening demand. More space is being vacated in West Perth than is being filled, with net absorption, which measures this difference falling by 4310sqm in the 12 months to December 2014, Savills reported.
Leasing activity was down by 50% in the 2014 calendar year compared with the year before. Just 9479sqm of space was leased, compared with the annual five-year average for the suburb of almost 20,000sqm.
 
Those tenants who have been leasing offices have taking advantage of the soft market to upgrade their premises. As such, vacancy rates are much higher in secondary properties in the area than in A Grade premises.
The vacancy rate for secondary properties, which make up about two thirds of the stock in West Perth, was 12.9% - almost double that of A Grade premises in the area which had a 6.8% vacancy rate, Savills reports. B Grade properties have the highest vacancy rate at 13.4%. 
Almost two thirds of the space that was leased was taken up by mining and utilities industries, with finance and insurance companies taking up the balance.
Savills expects vacancy rates in West Perth to rise further as mining investment continues to slow. It notes, however, that a lack of new developments planned and under construction in the area will lower vacancy rates in the medium to longer term.
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Mining downturn hits West Perth commercial landlords

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Consumers should always treat the words of real estate agents and their representative bodies with caution.
Many of the grubbiest aspects of residential real estate – including dummy bidding at auctions, overquoting to get listings, underquoting to attract bigger auction crowds, and exaggerations or exclusions in advertising – have agency fingerprints all over them, although often<a href="/news/greedy-vendors-the-main-underquoting-cause-reinsw"> agents will try to blame vendors</a>.
As a buyer of real estate over the years, I’ve always been startled at the willingness of selling agents to talk down the price or prospects of a property to make an easier sale.
Here’s an example: “The property’s being sold because of a marriage breakup and they need a fast sale, so if you make a low offer it might be accepted”. Great for buyers, but the vendors would be horrified if they knew what their agents were saying about them and their properties.
Then there are the public statements. Usually these are designed to pump up the market or to influence decision-makers on policy such as stamp duty or interest rates.
It gets to the point sometimes where agency statements should come with a public health warning: Inhaling these words may be damaging to your financial health.
Sometimes, the pubic statements of the agency community have a strange twist, where their words appear counter-intuitive. But when agents deliberately talk down a market, it’s not because they’ve had an epiphany or been struck by lightning. There’s always an ulterior motive.
Here’s a current example. For some months the Real Estate Institute of Western Australia (REIWA) has been bagging the Perth property market.
The general theme is that the market’s in the toilet. Sales volumes are down, vacancies are up, there are too many sellers and not enough buyers, and price decline in inevitable.
In my view, they’re misrepresenting the situation. Perth’s market is not that bad and there are growth pockets across the city.
But there’s been a steady stream of REIWA media releases, all saying very negative things about Perth property. I’d imagine agents all over the city are quietly seething.
But it’s all part of a plan, indeed a concerted campaign. The objective? To condition sellers to accept they have to lower their asking prices.
You might think agents have a vested interest in higher prices. Their commission is a percentage of the selling price. The higher the price, the higher the commission.
But, no, the agency goal is a fast sale. The price doesn’t matter too much. If a property has an asking price of $500,000 and the agency has an offer of $480,000, many agents (not all) will work on the vendor to lower their expectations - rather than do what they’re paid to do, which is work on the buyer to raise their offer.
The difference in commission between $480,000 and $500,000 is not much, but it’s $20,000 of difference to the vendor.  Many agents (not all) will represent their own interests above those of their clients, the vendors.
Agents want vendors to have low price expectations, because it makes it easier to sell and earn commissions.
Hence the deliberate and persistent campaign by the REIWA to talk down the Perth market. As they see it, the Perth has had a couple of good years but is past its peak and now heading south. It’s going to be a tough market in which to operate as agents. They need to soften up vendors.
It’s a very dangerous tactic. The message they’re sending, whether they realise it or not, is that no one should be buying in Perth at the moment. According to the institute, the market’s falling and prices will decline. No one wants to buy and find that their property is worth less six months later.
But they’re pursuing their campaign nevertheless. In the latest episode, the REIWA declares that Perth is over-supplied with sales and rentals. This is not good news for owners, because nothing depresses values like a surplus.
This week’s media release says there’s been a 210% increase in rental properties available in the market since 2012. The vacancy rate is above 4%. Over-building has created oversupply, according to the REIWA. The city’s median house price dropped $5,000 last month and it’s now taking much longer to sell properties.
“With this large supply of homes for sale and rent, it’s likely we will see negligible price growth across 2015 and a fairly slow market for those selling property or looking for tenants,” says REIWA president David Airey in the media release.
What on earth are they playing at, being so negative? The answer comes in the next paragraph. “It is essential that sellers and owners listen closely to the advice of their selling agents and property managers to ensure the right marketing and pricing in what will prove to be a very competitive environment,” Airey said.
That’s right, folks, you need to drop your asking prices and rents.
As I’ve often said, real estate is run by narcissists - and the loudest noise in property is always the voice of vested interest.
TERRY RYDER is the founder of <a href="https://hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>. 
You can also read David Airey from REIWA response '<a href="/expert-insights/there-is-no-conspiracy-in-reiwa-market-commentary-david-airey">There is no conspiracy in REIWA market commentary</a>'.
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Caution - inhaling real estate agent's words may be dangerous to your financial health: Terry Ryder

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This article is a response to Terry Ryder's piece '<a href="/expert-insights/caution-inhaling-real-estate-agents-words-may-be-dangerous-to-your-financial-health-terry-ryder">Caution - inhaling real estate agent's words may be dangerous to your financial health'</a>.
There is no conspiracy in REIWA market commentary. We pride ourselves in ‘telling it like it is’, contrary to the cynical perception that many members of the public often have towards agents.
The fact is the Western Australian property market is very cyclical (usually counter-cyclical to the east coast), and very closely linked to the fortunes of the mining and resources sector. That has taken a dive, with as many as 25,000 jobs having gone in the last year.
After solid market growth through 2005 – 2007, market correction and the global financial crisis in 2008, followed by full market recovery in 2009, the WA housing market has bumped along for the last five years with modest growth and patchy sub-markets. First home buyers have been very active.
However, we are now facing a year in which our population growth rate is slowing, consumer sentiment is weak, job losses continue, people are moving house less often and a significant number of new dwellings are coming to market or planned for next year.
There are some 24,000 homes under construction, of which 8,300 are multi-residential. While this level of output is not so unusual, it has not previously occurred at a time when population growth was slowing. There is increasing concern about how this oversupply will impact across all markets as it comes to fruition.
Listings for both sales and rentals have spiked and continue to climb. Days on market have stretched out to 63 and the number of vendors discounting has increased to 57% with the average discount climbing to almost 6%.
The message we are hearing loudly and clearly from our agents and property managers is that many sellers and owners have unrealistic expectations and seem to have a mind-set that views that market as unchanged from a few years ago. This is wrong.
REIWA believes it has an obligation to advise the public about changing market conditions if sellers and owners want to achieve the best asking price or rental return and in a realistic time frame.
This is not to suggest that people shouldn’t buy or invest in the Perth market; far from it. But engaging in the market requires good research, good timing, realistic expectations and a long-term outlook. And it must be said that some sub-markets and regional centres are doing much better than Perth overall.  
Current indicators point to a weaker market in 2015 across our metropolitan area for the reasons outlined above. Growth will be negligible. Sellers and landlords will find it a more challenging year and we don’t resile from speaking this truth.
It will be interesting to revisit this topic in the December quarter, and I invite Mr Terry Ryder to return to this column about REIWA and Perth later in the year. I am confident our commentary will be proved accurate and prescient. 
David Airey is president of <a href="https://reiwa.com.au/" target="_blank">REIWA</a>.
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There is no conspiracy in REIWA market commentary: David Airey

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Significant price differentials between neighbouring Perth suburbs are increasing apparent to buyers willing to slightly compromise on location.
Peppermint Grove tops the city's list with a median price of $3.95 million - but that is almost three times more than neighbouring Mosman Park's $1.4 million median.
South of the river, North Coogee's $1.3 million is significantly more expensive than neighbouring Spearwood's $545,000, Coogee's $860,000 and Hamilton Hill's $554,000.
Realmark managing director John Percudani says suburbs bordering Rossmoyne's $1.1 million's include Bull Creek's $765,000 and Willetton's $772,000.
North of the river, coastal suburbs either side of Waterman’s Bay's $1.46 million median include North Beach's $950,000 and Marmion's $925,000.
Percudani explained to the local paper there was good reason for the differential in some areas, but maintained there was excellent value in certain suburbs adjacent to their more expensive neighbours.
He said buyers were becoming more focused on extracting value and less fixated on postcodes.
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Forget the postcode: Buying in next door suburb saves money in Perth

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The Perth housing market recorded modest price growth over 2014 with affordability barriers and declining economic activity impacting the market, according to the Domain Group's senior economist, Andrew Wilson.
Perth’s median house price increased by just 0.6% over 2014 - well down on the 9.6% of 2013.
<img src="/images/2015/03/12/perth-mar-12-one.jpg" alt="">
Source: Domain Group
"Perth was the early starter in the general capital city housing market revival that commenced with sharp cuts to interest rates in 2012-13," Wilson said.
"The local market is now stabilising following exceptional prices growth over 2012 and 2013."
Rising unemployment and lower economic growth, driven primarily by the decline in the resources sector, are impacting housing market activity, he said.
"Despite this, the local Perth economy remains relatively well placed compared to most other state economies."
<img src="/images/2015/03/12/perth-mar-12-two.jpg" alt="">
Source: Domain Group
Wilson tipped price growth over 2015 to remain steady in Perth helped by the proportion of first home buyers, which exceeds all other capital city markets, and the prospect of rising activity in the prestige market.
"Lower interest rates will also provide a stimulus to aspirational buyers in middle price ranges," he said.
"The recent solid performances in Perth’s higher-priced city suburban areas will continue with moderate buyer activity from the mid and budget range regions of the north, south, south-west and east."
Perth median house prices are forecast to rise between 1 and 3% over 2015.
<img src="/images/2015/03/12/perth-mar-12-three.jpg" alt="">
Source: Domain Group
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Perth prices to remain steady in 2015: Domain Group's Andrew Wilson

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Perth house sales during February were down on the same time last year. 
Turnover was down around 16% on last year, to 1,870 reported sales, according to REIWA.
The median house price eased by around 1%, or $5,000 to $547,000.  The REIWA president David Airey said reiwa.com data showed that sales lifted 12% in February after the festive season downturn. 
“Given that sales were down by 15% in January and now by a similar figure in February, it’s clear that the market is showing a trend of slow-down that is apparent even at a time when seasonal summer sales are usually stronger,” Airey said. 
Listings for sale increased by 4% in February to 13,456 properties. 
The rental market showed no sign of change in February, with the exception of the City of Belmont where median rents lifted by $20 to $450 per week. 
Perth’s median rent is unchanged at $440 per week and data shows a vacancy rate of just over 4%, Airey said.  
There were 6,251 rental homes looking for tenants in February, up by almost 30% on the same time last year. 
Top selling suburbs in February:
<ul>
<li>Northwest metropolitan Quinns Rocks, Woodvale, Duncraig, Clarkson, Butler. 
</li>
<li>Northeast metropolitan   Ellenbrook, Ballajura, Forrestfield, Lesmurdie, High Wycombe.  
</li>
<li>Central metropolitan  Willetton, Balga, Morley, Dianella, Karrinyup.  
</li>
<li>Southwest metropolitan  Baldivis, Secret Harbour, Waikiki, Rockingham, Warnbro.  
</li>
<li>Southeast metropolitan  Canning Vale, Armadale, Thornlie, Kelmscott, Byford. </li>
</ul>
Source: REIWA.
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Around 30% more homes for rent in Perth than last year: REIWA

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The Perth market is a good illustration of the need for investors to delve a little deeper with their research when assessing a market.
Many commentators give us sweeping generalisations, with comments about the state of play nationally or for a major city as a single market. This can disguise myriad differences in sub-markets and is often highly misleading.
Perth is top of mind because I flew there this week to address a seminar with the Blackburne Property Group.
The generalised figures show that Perth overall is a stagnating market. In the past 12 months, the median house price for the city overall has grown only 1% or so.
Perth, along with Darwin, was the national leader on price growth in 2012 and early 2013, before Sydney took over. Since then, Perth has gradually faded.
This shows up not only in the city median price data but in sales volumes – which peaked in Perth in mid-2013 and gradually declined since then.
But, as is always the case, there are many local differences. While there was little growth in the Perth median house price last year, many individual suburbs had good growth. Some recorded double-digit rises in their median house prices.
The areas that have continued to deliver good growth are mostly those who fit the simple formula I often write about: affordability plus infrastructure plus jobs nodes.
The suburb of Armadale recorded 350 house sales last year at a median price of $325,000, an annual rise of 7%. The suburb, and the LGA of the same name, is in the far south-east of the Perth metropolitan area, and is an example of markets that tick many boxes for home buyers and investors: affordable homes, good transport links, plenty of amenities, new infrastructure spending and proximity to jobs nodes.
Gosnells is another downmarket area that Perth people like to denigrate, often with the question: who’d want to live there? Well, someone does, because 439 houses sold there last year at a median price of $390,000, an annual rise of 8%.
Other suburbs around Perth did as well or better. Bentley was up 11%, Girrawheen 14%, Harrisdale 12%, Kewdale 17%, Mt Hawthorne 15%, Willard 13%, Langford 17% and Maddington 11%. There are many others. Not bad for a city where, according general media coverage, the market is dead and bereft of growth.
As an aside, a number of WA regional markets also did well in the past year, including Busselton, Mandurah and, surprisingly, previously-depressed Kalgoorlie.
So, what of this year? The sales trends suggest there will a lot of steady markets, based on their consistent sales patterns, and a smaller number of group suburbs, where sales activity is still rising.
The growth markets include a number of suburbs in the Armadale LGA including Kelmscott, the Rockingham LGA including Waikiki and the municipality of Wanneroo, including Tapping, Banksia Grove, Butler and Yanchep.
One of the standout features of the Perth market is the number of suburbs which produce highly consistent sales. That’s significant but suburbs that deliver the same numbers quarter after quarter have good price growth records.
High Wycombe is a good  example. Sales in the past nine consecutive quarters have been 84, 81, 89, 81, 80, 77. 83, 83 and 89. That’s a remarkable level of consistency. High Wycombe’s long-term capital growth record is 9% per year and it lifted its median house price 7% last year.
And there’s a suburb near High Wycombe that stands out for a variety of reasons. Forrestfield has a very good track record of growth and has increased its rate of sales significantly in the past 12 months, so further growth is likely. And there is a major boost in its future, with the $2.2 billion Forestfield-Airport Rail Link due to start construction next year.
TERRY RYDER is the founder of <a href="https://hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
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Many Perth suburbs still recording good growth: Terry Ryder

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GUEST OBSERVATION
It is shaping up to be the year of the buyer as favourable market conditions create an opportune time for investors in Western Australia.
While capital growth is widely tipped to be moderate in the Perth property market for the year ahead, the next 12 months will provide a good platform for investors to build their property portfolios for several reasons.
Firstly, we can be confident that finance will remain cheap as interest rates stay at record lows. The large majority of industry analysts are predicting that the Reserve Bank of Australia (RBA) will not hike rates this year.
Secondly, we have seen a 28% increase in housing stock available in Perth over the past year with the number of listings surpassing 13,000 at the end of 2014.
This provides investors with a much wider choice and buyers are more likely to find a better suited property to their needs.
Thirdly, given the softer outlook for the Perth property market, many buyers will delay their decision to acquire a dwelling until conditions improve.
This simply boils down to human nature as many investors take a herd mentality and become discouraged when the market isn’t recording robust capital growth.
As many buyers delay a property purchase, those that do choose to invest in property will encounter less competition.
Subsequently, investors can get more bang for their buck or are able to secure properties for less, or even below asking price, as reduced competition means buyers are less likely to be forced to outbid others.
Finally, buyers in softer markets will have more control over contract negotiations as less competition means they can be more demanding of sellers. We are already seeing great properties being purchased at fair prices.
While we don’t expect huge capital growth for the Perth property market, the fact is that cheap finance, higher stock levels and reduced competition means buyers will have the upper hand.
The long-term fundamentals for Perth remain very strong. It is forecast to have the fastest growing population and fastest growing economy over the next 10 years.
Warren Buffett famously said, “Be fearful when others are greedy and greedy when others are fearful”.
Those who make the most of the current favourable conditions and invest wisely in the next 12 months will be best placed to take advantage of the next upswing in the property market.
Damian Collins is the founder and managing director of <a href="https://www.momentumwealth.com.au/" target="_blank">Momentum Wealth</a>, a Perth-based property consultancy that specialises in building the long-term wealth of its clients by assisting in the strategic selection, financing, acquisition, development and management of their investment properties.
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