Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Retail

Retail rents on Sydney&rsquo;s Pitt Street Mall ranked as the fifth highest in the world in 2014, up from eighth most expensive the year before, a report from Cushman and Wakefield has found.

The report, Main Streets Across the World 2014/15,&nbsp;showed retail rents on the premier shopping strip grew by 25% over the year.

Pitt Street&#39;s increase was the second largest in the Asia-Pacific region after rents for retail space in Beijing&#39;s CBD, which rose by 26.4%.

In San Fransisco&#39;s Union Square, retail rents soared 30%, while in Istanbul&#39;s Istiklal Street, shop rents increased by 27.3%.

The report attributed the rapid growth of rents on Pitt Street Mall to international retailers signing new leases and taking up larger space through the amalgamation of smaller stores, which reduced the supply of space.

It noted there was a global trend for major retail brands to experiment with design, layout, content and services in their flagship stores. This was expected to remain a key factor influencing growth in major retail centres in the coming year.

Market activity was expected to improve in the next 12 months, despite uncertain economic outlooks for parts of the world.

&ldquo;Premier shopping locations will remain in high demand as retailers are keen to establish a presence and raise their brand profile, but supply as ever will remain tight,&rdquo; the report noted.

The world&rsquo;s most costly retail space was along New York&#39;s Upper 5th Avenue, where rents were US$3,500 per square foot per year.

Hong Kong&rsquo;s Causeway Bay shopping district, the Champs Elysees in Paris and London&#39;s New Bond Street ranked second, third and fourth, respectively.

Rents on Pitt Street Mall cost US$1,016 per square foot, the report found, making retail space along the mall more costly than prime shopping areas in Milan&#39;s Via Montenapoleone and Tokyo&#39;s Ginza district.

Retail rent rises in Australia were confined mainly to Pitt Street Mall and high performing regional shopping centres, where rents rose by 7.8% to A$2,200 per square metre per year, the report found

Landlords of premises in other prime retail strips in Australia have not shared the fortunes of Pitt Street Mall. No rental growth was reported for shops on Rundle Mall in Adelaide, Queen Street Mall in Brisbane, Bourke Street in Melbourne or in Perth&#39;s CBD.

Retail rents along Sydney&rsquo;s Oxford Street continued to lag. Cushman and Wakefield&rsquo;s report showed the cost to rent on the once-fashionable retail strip was A$1,050 per square metre per year, compared with A$12,500 per square metre per year on Pitt Street Mall.

The top 10 most expensive retail locations in each country:

Rent price is per square foot per year.&nbsp;Change in rental rates is compared to 2013 rates

<ol>
	<li>USA, New York, Upper Fifth Avenue 
	 
	Rent price: US$3,500 
	Change in rental rates: +13.3% 
	&nbsp;</li>
	<li>Hong Kong, Causeway Bay 
	 
	Rent Price: US$2,735 
	Change in rental rates: -6.8%&nbsp; 
	&nbsp;</li>
	<li>France, Paris, Avenue des Champs Elysees 
	 
	Rent price: US$1,556 
	Change in rental rates: 0.0 
	&nbsp;</li>
	<li>UK, London, New Bond Street 
	 
	Rent Price: US$1,216 
	Change in rental rates: +4.2% 
	&nbsp;</li>
	<li>Australia, Sydney, Pitt Street Mall 
	 
	Rent price: US$1,016 
	Change in rental rates: +25% 
	&nbsp;</li>
	<li>Italy, Milan,&nbsp; Via Montenapoleone 
	 
	Rent price: US$998 
	Change in rental rates: +13.3% 
	&nbsp;</li>
	<li>Japan, Tokyo, Ginza 
	 
	Rent price: US$953 
	Change in rental rates: +6.9% 
	&nbsp;</li>
	<li>South Korea, Seoul, Myeongdong 
	 
	Rent price: US$932 
	Change in rental rates: +17.6% 
	&nbsp;</li>
	<li>Switzerland, Zurich, Bahnhofstrasse 
	 
	Rent price: US$875 
	Change in rental rates: +1.1% 
	&nbsp;</li>
	<li>Russia, Moscow, Stoleshnikov 
	 
	Rental price: US$557&nbsp; 
	Change in rental rates: +20%</li>
</ol>

Source: Cushman and Wakefield.&nbsp;

Picture courtesy of &nbsp;<a href="https://commons.wikimedia.org/w/index.php?title=User:Mw12310&amp;action=edit&amp;redlink=1" title="User:Mw12310 (page does not exist)">Mw12310</a>/&nbsp;<a href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by-sa/3.0" target="_blank">CC BY-SA 3.0</a>.

zfielding-GvX3Uq9KTa

Sydney's Pitt Street Mall ranked among the world's most expensive retail rental locations

<html><body>
Raine &amp; Horne Commercial South Sydney/Marrickville has sold two Commonwealth Bank (CBA) branch premises at auction.
A private investor, Ausjo Holdings Pty Limited, secured 202-204 Beamish Street, Campsie (pictured above) for $6.9 million. The building is located on Campsie’s main retail strip, near Campsie Station and Campsie Centre. The property is 100 square metres and has a current rental price is $410,000 per annum.
Luke Smith, director of Raine and Horne Commercial South Sydney/Marrickville, says the sale is a strong result considering the current lease term to the CBA had approximately 12 months remaining.
“We fielded over 300 enquiries during the marketing campaign for this property, and at $6,900,000, this sale represents an approximate net return of 5.9%.”
A private investors syndicate secured 118 Argyle Street, Camden (pictured below) for $6.3 million.
<img src="/images/2014/11/26/camden-nov-26-one.jpg" alt="">
The commercial building is 646 square metres, is two storeys and has the capacity to house five tenants. The CBA has no intentions of moving from the first floor, according to Raine and Horne selling agent, Rebecca Saab.
“The ground floor of 118 Argyle Street, Camden will remain leased to the CBA, while the building has the added bonus of two Telstra tower leases which generate an additional $46,000 per annum in addition to the current net rental of $445,810 per annum,” said Saab.
Smith describes both properties as blue chip opportunities.
Raine and Horne Commercial South Sydney/Marrickville sold an additional four properties sold at the auction.
</body></html>

jchancellor-FAypfDUnLy

Investors bank on CBA branches as Raine & Horne sells two at auction

<html><body>
Whyte’s from Torquay has committed to a new $270,000 lease at Melbourne Docklands.
It ranks as one of the biggest food and beverage deals done in the Victoria Harbour precinct this year in a deal negotiated by Savills Australia.
Located at 829 Bourke Street, on the south-west corner of Merchant Street, Savills Australia Victorian retail director Michael Di Carlo said the deal was struck at circa $600 a square metre per annum net on a five year term.
The property comprises a 450 square metre building area over two levels with 250 square metres on the ground floor and 200 square metres upstairs with views to the CBD and the Harbour from a large balcony.
Di Carlo said Whyte’s, which has a very popular wine bar and restaurant on The Esplanade, at coastal Torquay, sought to make a grand statement with a contemporary style restaurant offering.
The lessor is Lend Lease.
</body></html>

Victoria Harbour secures Whyte's from Torquay restaurant lease deal

<html><body>
Sydney’s newest laneway retail precinct, Kensington Street, has been launched on the eastern boundary of the $2 billion masterplanned Central Park project in Chippendale.
Kensington Street by Greencliff is seeking 26 tenancies, including 14 food and beverage and 12 specialty retail, comprising 3,000 square metres of gross floor area spanning 160 metres of direct street frontage in the heritage-conversion lane way precinct.
Part of the precinct includes the Unlisted Collection’s boutique hotel, The Old Clare, which has secured top UK chef, Jason Atherton (Pollen Street Social, Equina) to head up a line-up including Clayton Wells (Momofuko Seiobo) and Sam Miller (Noma).
Greencliff executive director, in charge of leasing, Marcus Chang says it presents a rare opportunity to showcase talents.
“Greencliff are in the midst of carefully curating a melting pot of some of the edgiest and highly acclaimed talents in the world,” said Chang. 
“Tenancies range from intimate and affordable 25sqm spaces which offer really cool unique opportunities for someone like a barista, chic pastry chef or even a cocktail bar – to spaces within soaring warehouses with graffiti on the walls, exposed beams and hundreds of years of history etched in every crevice," he said.
"This is inner-city retail gold dust.”
<img src="/images/2014/11/26/kensington-nov-26-two.jpg" alt="">
The community of Central Park is already 2,000 plus residents now living at the precinct with a further 3,000 set to move into the precinct by 2015.
The Greencliff CEO Dr Stanley Quek said that the concept was developed as a major drawcard for innovative and ambitious retailers looking to contribute to the newest vibrant ‘eat street’ in the heart of Sydney’s new downtown.
“Visitors will be reminded of the streets of Brooklyn in New York, Abbot Kinney Boulevard in Venice Beach, LA or Brick Lane in East London. It will be quite unlike any pedestrian laneway precinct currently in Australia,” he said.
The Kensington Street precinct is expected to be open in early 2015.  
</body></html>

Kensington Street, Chippendale seeking edgiest retail tenants

<html><body>
GUEST OBSERVATION
The recent <a href="/expert-insights/investing/pie-face-bakery-chain-collapses-into-administration">voluntary administration of Pie Face</a> has highlighted the uncertainty faced by franchisees if their franchisor goes into administration.
Here are 10 key risks to franchisees of insolvent systems:
1. The risk of little useful information
Many insolvency practitioners do not understand franchising and the nature of the franchise relationship.
Administrators will apply considerable effort to keep staff and creditors informed during an insolvency – the first to ensure they keep the business operating or provide access to records while the administrators sort out the business’ position, and the second to ensure continuity of key supplies. However, franchisees are generally given the bare minimum of information.
Because staff and suppliers are recognised as creditors, they are usually better-informed than franchisees, who may be circulated a form letter when the business is placed in administration, and then hear no further meaningful information until a sale or winding-up announcement is made. Franchisees of insolvent chains often learn more from the media about the future of their livelihoods than they do from the administrators.
2. Loss of consumer confidence
In previous franchise insolvencies such as that of book retailer Angus &amp; Robertson in 2011 and whitegoods retailer Kleenmaid in 2009, the loss of consumer confidence when the businesses went into administration was so great that it accelerated the final collapse.
Angus &amp; Robertson customers were outraged when administrators announced that gift vouchers (many of which were given as Christmas presents only a couple of months earlier) would no longer be honoured, prompting a consumer backlash. During this highly damaging PR, the remaining company-owned and franchised stores were expected to trade on as usual.
When Kleenmaid went under, its franchised and company-owned stores were besieged by angry customers trying to claim the goods for which they had collectively paid more than $25 million in deposits. In rare cases, some were able to buy their goods all over again in liquidation sales to ensure that their newly-built or renovated kitchens or laundries could be completed without further modifications, but many swore they would never buy Kleenmaid again, and actively campaigned against the brand in revenge.
3. Disruption to supply chains
Some franchise systems have preferred supplier arrangements, and others are the primary supplier to their franchisees themselves.
A manufacturer may supply its retail network of company-owned and franchised stores with the majority of their product lines. If the manufacturing facilities are scaled-back, closed or sold separately from the retail network, then a significant risk of disruption to normal supplies exists. A new buyer of the group could decide to close the factory and outsource manufacturing altogether, in which case it is likely that teething problems with a new set of arrangements could also result in supply issues for franchisees.
While it is possible for a franchisee to continue to operate when a franchisor goes bust in networks that have preferred supplier arrangements, the franchisee might find that creditors will become more risk averse and tighten their credit terms, insist on cash up front, or otherwise cap franchisee purchases to a low limit to reduce future risk.
4. Stock dumping
Franchisees of fashion accessory chain Kleins, which collapsed in 2008, found themselves selling goods at cost or below as the administrator sought to liquidate inventory held by the franchisor that could not be returned to suppliers.
In any group where the franchisor has embedded itself into the supply chain and provides inventory to the franchisees, there is the risk that administrators will seek to liquidate inventory as quickly as possible through the network to generate cash, and this may be done at the expense of franchisee margins or in breach of the brand’s established price positioning.
Either way, this can be damaging to a franchisee’s business.
5. Diminished franchisor support
Administrators will question all costs in a business, particularly labour costs. Franchisor head office staff who survived the franchisor’s descent into administration may still be made redundant by the administrators in an attempt to restore profitability and improve the saleability of the business as a going concern, but in doing so often reduce the very resources for which franchisees pay royalties.
Consequently, franchisees of an insolvent system might find that their field support officer has been let go, or now has two or three times more franchisees to support as his colleagues have left.
A reduction in field support is likely to occur concurrently with a reduction in marketing personnel and other head office functions that directly or indirectly provided support, meaning that franchisees will be left more and more to their own devices, and while some may see this as a good thing, it further exacerbates damage to the brand (and therefore, network value) as inconsistencies develop in the group.
At its worst, this could lead to open revolt by franchisees, as happened with Angus &amp; Robertson in 2011 when nearly half the franchisees sought to leave the group en masse while it was under administration.
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
6. Pursuit of outstanding royalties
Administrators have no capacity to offset debts owed by an insolvent franchisor to its franchisees, against the royalties owed by the franchisees.
In other words, franchisees have to claim their debt owed by the franchisor like any other creditor, and end up with whatever cents in the dollar might be paid at some future point, but in the meantime must pay 100% of all outstanding royalties to the administrators on demand without argument.
If franchisors have allowed franchisees to fall behind in their royalty payments, administrators will ditch such arrangements and demand full payment immediately as they scrape together cash to keep the business afloat. Unfortunately, this can result in considerable financial pain to any franchisees who owe royalties, and whose business may also be struggling (the reason why they fell behind in their royalties in the first place).
7. Disclaiming of leases or other agreements
When Kleins was placed into voluntary administration in 2008, it was subsequently revealed that the franchisor held the leases on all the stores in the network, including the franchised outlets. Franchisees would then sub-lease the stores from the franchisor, to whom they would pay rent, and then the franchisor in turn would pay rent to the landlord (many of which were major shopping centres).
However, under this arrangement, the rents paid by the franchisees to Kleins were not being passed to the landlords, and the store rents fell behind.
When the administrators took control of the business, they exercised their unique power to disclaim (i.e. terminate) the leases, to reduce their ongoing liabilities in operating the business. The unfortunate byproduct of this action was that the franchisees in terminated outlets were suddenly left with two choices: close the shop and wear the losses caused by the premature ending of their business, or negotiate new leases directly with the landlords and attempt to continue trading.
Many chose to negotiate new leases with the landlords, but found this to be a double-whammy.
In some cases their rent increased because they were now independent operators, and no longer part of a national chain. In all cases, the franchisee would have had to find the cash to lodge the usual rental guarantee (up to three months rent in advance), plus invest in new signage and fitouts, etc, to trade as independents, while at the same time writing-off as unrecoverable large sums of money owed to them by the franchisor under Kleins’ unique income guarantee.
Administrators can and will disclaim leases and other commercial agreements if they feel it is in the best interests of the insolvent entity, even if it is not in the best interests of the franchisees.
However, the reverse does not apply to franchisees, who usually have no rights to terminate their franchise agreements even if their franchisor is in administration.
8. Loss of business value
It goes without saying that any franchisee who might have been planning to sell their business before their franchisor goes into administration will subsequently find it almost impossible to complete a sale until the system recovers from this emergency.
Such a recovery, if one is possible at all, could take years.
Even if the system does recover, a franchisee’s business in future may be worth less than it would have been prior to the administration. This loss of business value can cause major problems for franchisees who are heavily geared and may ultimately sell at a loss, or who planned to fund their retirement using the proceeds from the sale of their business, which may now be insufficient.
Unless franchisees themselves are creditors (which is rare), this loss of franchisee business value, or the imperative to maintain franchisee business value, is incidental to administrators whose sole focus is to maximise the returns to creditors.
9. Significant ongoing personal liabilities
If a franchisor collapses, franchisees may be left without a business to trade if their supply of unique products ceases to exist.
Because Kleenmaid stores sold only Kleenmaid products, when these were no longer available following the collapse of the franchisor, the stores could not switch suppliers and continue to trade.
If this occurs, franchisees may have no choice but to close their stores, while continuing to pay the significant ongoing costs of shop leases, business loan repayments, and chattel mortgages for shop fit outs, fixtures and fittings. These ongoing liabilities can be a blight that weighs down a franchisee long after the collapse of their franchisor.
10. Radicalisation of corporate culture
If a buyer is found for an insolvent franchisor, the new owner will inevitably want to put their own stamp on the business and make changes to ensure its ongoing survival.
The nature of the buyer, and the changes they will seek to implement, might clash with franchisees and appear at odds with the corporate culture under the former owners. For many franchisees, a change of ownership will require them to adapt to new management and new ways of doing things. These changes can be relatively minor, incremental and easily adaptable, or can be major, radical and disruptive to the organisational culture and brand values.
Conclusion
This is not an exhaustive list, but should give pause for thought to any existing franchisee concerned about the future of their network, any potential franchisee who needs to asses the risks of what might happen in a worst-case scenario, and any insolvency practitioner who might one day find themselves managing a franchise network in administration.
Most importantly, this list should also serve as a reminder to franchisors that an inability to adapt to a changing market and poor management has consequences for those around them, especially their franchisees.
Jason Gehrke is the director of the <a href="https://www.franchiseadvice.com.au/" target="_blank">Franchise Advisory Centre </a>and has been involved in franchising for 20 years at franchisee, franchisor and advisor level.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
</body></html>

po-LsXgBTHBmX

10 risks to franchisees when companies go bust

<html><body>
Australian food franchise Pie Face has collapsed into voluntary administration.
In a statement released to SmartCompany, the Pie Face Group confirmed Jirsch Sutherland has been appointed as administrators.
However, Pie Face said it is “business as usual” as the administrators conduct a review of the chain’s operations.
“The move comes as part of a wider company review, which will see the company focus on supporting the growth of its franchise-operated stores as well as the wholesale business,” Pie Face said.
“The international businesses are not affected”.
A spokesperson for Pie Face confirmed there are currently 70 Pie Face franchises across Australia, although the Pie Face website lists 78 outlets, including 15 in the Melbourne CBD and 20 in the Sydney CBD.
There are Pie Face stores in all states and territories, except Tasmania, South Australia and the Northern Territory, although South Australians can purchase its pies in On the Run convenience stores.
The collapse comes after Pie Face <a href="/expert-insights/investing/pie-face-quietly-closes-up-new-york-shops">quietly closed six of its seven stores in New York City</a> last month. While Pie Face has previously attempted to expand into India and New Zealand without much obvious traction, the chain is also believed to have agreements to enter South Korea and the Philippines.
The chain also became embroiled in a legal battle with a former franchisee <a href="https://www.smartcompany.com.au/legal/41452-pie-face-in-legal-action-as-former-franchisee-seeks-800-000-for-misleading-conduct" target="_blank">earlier this year</a>.
Former franchisee Prit Dutta sued Pie Face for $800,000 in February, alleging the pie chain was misleading and deceptive when communicating the expected returns for its franchise stores.
The lawsuit followed reports in 2013 that around 50 Pie Face franchises were up for sale, although founder Wayne Homschek <a href="https://www.smartcompany.com.au/growth/economy/32003-pie-face-founder-fights-back-against-loss-making-accusations" target="_blank">denied the reports to SmartCompany at the time</a>, saying the claims were “totally blown … out of proportion”.
Jason Gehrke, executive director of the Franchise Advisory Centre, said he believes some stores in the Pie Face network are company-owned and in some cases, company-owned stores can “be a drag on a franchisor’s resources if they are not part of a conscious growth strategy”.
Gehrke says Pie Face franchisees will need to be aware that a voluntary administration does not relieve them of the obligations in their franchise agreement.
“They will still have to pay loyalties, maintain supply agreements and so forth,” he says.
Gehrke says an administration can spell bad news for franchisees as it can “adversely affect the level of support available to franchises if the administrators opt to make any head office staff redundant”.
It’s also an issue when head office staff are busy assisting administrators, which is time they would otherwise be spending supporting the franchisees. 
But he says the administration of Pie Face may present a new business prospect for any interested buyers.
“I think this represents an opportunity for an existing franchisor or a group of motivated existing Pie Face franchisees to move quickly to acquire a brand that has some significant traction in the market,” Gehrke says.
SmartCompany contacted Jirsch Sutherland but did not receive a response prior to publication.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
</body></html>

ekeating-PWvazjYE25

Pie Face bakery chain collapses into administration

<html><body>
Engineering your end game and getting ready for mobile payments are both key <a href="https://www.smartcompany.com.au/technology/online/33923-trends-in-online-and-store-retail-in-australia">global retail trends</a> for next year, according to Lorna Hall, head of market intelligence at WGSN.
Hall was the keynote speaker at the WGSN Live conference in Melbourne last week. 
She says retailers shouldn’t stop innovating but need to really focus on their customers and identify which trends they are ready for and what will pass them by. 
<img src="/images/2014/07/04/yellow-one.jpg" alt="" style="float: left;"> Universal carts
Universal carts allow customers to purchase from different online stores through the one website. Hall says universal shopping carts could transform marketplaces and affiliate-based businesses into a much more convenient place to shop.
“These sites may be much more important to retailers and brands. It’s not a big step to imagine a time when we all own our own mobile carts,” Hall says. 
<img src="/images/2014/07/04/yellow-two.jpg" alt="" style="float: left;"> Click and collect
Last Christmas in the United States was an “epic fail” for delivering gifts on time, according to Hall.
“As a result, retailers do not want to get burnt again. They are trying all sorts and it is really interesting to see,” she says.
Hall says the problem with traditional online shopping with home delivery is that it is not as convenient as we thought it would be.
“Most of the time we are not at home. The growth of click and collect is one of the ways of bridging that gap,” she says. 
<img src="/images/2014/07/04/yellow-three.jpg" alt="" style="float: left;"> Curbside pickup
Retailers are experimenting with other more convenient ways of delivering purchases beyond click and collect.
In Australia, The Iconic is going to allow ordering before 1pm and getting your goods after 5pm.
“In the US how you receive and return goods is a key battleground ahead of the holiday trading period,” Hall says.
Examples include department store Sears, which has launched an in-vehicle pickup. Customers wait outside the store and a staff member carries the order to their car. 
Meanwhile, Target is piloting a pickup service called Curbside where customers pick up from a tent outside the store.  The Curbside app uses geolocation technology. Customers don’t have to let the retailer know when they are ready to pick up. When their car is 30 minutes away from the store the retailer goes and gets your order ready for you. 
<img src="/images/2014/07/04/yellow-four.jpg" alt="" style="float: left;"> Click and commute
Hall says a growing trend is retailers introducing lockers and collection points into transport hubs.  
In the United Kingdom, department store John Lewis has opened a 3000 square metre store at London’s St Pancras station, which sells stock but also provides a venue for click-and-collect pick up. 
Fashion retailer French Connection recently opened its first “convenience store” at a tube station in London. It allows shoppers to pick up online orders on the same day if they place the order by 1pm and pick up at 5pm. 
<img src="/images/2014/07/04/yellow-five.jpg" alt="" style="float: left;">A single view of inventory
Hall says the thing that unlocks many of these trends for retailers and shoppers is a single view of inventory, with 70% of the new technology and apps relying on a single view of inventory.
“If you are not working towards that in your business and making it a real focus then you are never going to be able to capitalise on a lot of the new technology,” she says.  
“This is where you get innovation for customers and you can achieve better margins for your business.”
<img src="/images/2014/07/04/yellow-six.jpg" alt="" style="float: left;"> Last touch service
Hall recommends retailers innovate around their end game to “elevate brand experience”. 
French company Darty has a physical help button that customers stick on their appliance. Customers pay a service charge and press it when something goes wrong and within one minute receive a call from a Darty service adviser.
In the United States, online jewellery retailer Baublebar adds a present into every purchase. There is no mention of the gift before purchase, it happens after purchase and is a surprise to engender goodwill. 
“I think we are likely to see much more of this post-purchase innovation ideas by retailers as they look to lock in loyalty post the purchase experience,” Hall says. 
This article continues on the next page. Please click below. 
<hr class="system-pagebreak">
<img src="/images/2014/07/04/yellow-seven.jpg" alt="" style="float: left;"> Mobile payment
Hall says the <a href="https://www.smartcompany.com.au/finance/43671-apple-pay-delay-for-aussies-but-will-small-businesses-benefit-from-iphone-tap-and-go">launch of Apple Pay</a> in the IPhone 6 has upped consumer awareness around mobile payments. 
“Mobile payments will unlock all sorts of innovation and change in retail and will change the way we shop,” she says.
“Millennials are already really willing to embrace new forms of payment.”   
New security features are allowing mobile checkouts to become faster and more convenient. 
In the United States, Venmo is providing a new payment option with peer to peer payments. Venmo is predicted to reach $90 billion in payments in the next three years. 
<img src="/images/2014/07/04/yellow-eight.jpg" alt="" style="float: left;"> Data-driven
“Learning algorithms are increasingly being used by retailers to guide the path to purchase,” Hall says. 
Amazon is the pioneer in this area but other examples include US fragrance retailer Scentbird, which tailors recommendations to customers, and the home and renovation app Houzz.
Houzz enables people who are renovating their houses to browse for inspiration. “In theory, the more you browse the service the better the recommendations get,” she says.
<img src="/images/2014/07/04/yellow-nine.jpg" alt="" style="float: left;"> Connecting customers 
“The process of buying something is becoming a learning journey on both sides,” Hall says.
UK pure play furniture retailer Made has launched Unboxed. It’s a social platform for existing customers to upload images from their own houses to show how they have used furniture and styled it.
“You can connect really satisfied customers because they are geo-located,” Hall says.
“At its simplest, Made doesn’t want to invest in expensive retail or showroom space.”
<img src="/images/2014/07/04/yellow-ten.jpg" alt="" style="float: left;"> Surprise and delight in-store
Hall says retailers need to surprise and delight in-store using technology.
“There is not enough of this going on but there is a real opportunity to do this,” she says.   
UK retailer The White Company has installed tiny digital projections in stores to animate products such as messages scrolling across pillows encouraging customers to touch them.   
“We are so caught up with technology that we almost forget how to charm and delight like this.” 
<img src="/images/2014/07/04/yellow-eleven.jpg" alt="" style="float: left;"> Visual search apps  
In the US, Macy’s and Target have launched visual search apps.  
Customers can pull up a photo of a friend wearing a necklace and then use the apps to find similar products.
“This technology is getting better all the time,” Hall says. 
<img src="/images/2014/07/04/yellow-twelve.jpg" alt="" style="float: left;"> Going hyper local with beacons
Hall has seen a “massive push” in terms of trial and innovation around beacons with Timberland, Apple and Macy’s all using beacons in stores. 
Hall cites research which shows 53% of customers are willing to share their current location in order to receive more relevant information.
“The question is how can retailers use beacons to impact the sale,” she says.
US department store Lord &amp; Taylor is using beacons to track dwell time and the beacons send push notifications to alert customers to deals.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
</body></html>

cwaters-YrtBR88nBe

The 12 top global retail trends for 2015

<html><body>
The convenience store chain, EzyMart will open its fifth store in Melbourne’s CBD this year. It envisages 150 stores across the city in what some see as a battle against 7-Eleven's supremacy.
The latest opening follows agreement on a new lease on the Queen and Little Collins streets corner in a deal negotiated by Savills Australia.
The property comprises a ground floor retail area of 40 square metres which has been leased on a three-year term at circa $2,500 a square metre per annum net. 
"EzyMart is very well established in Sydney and is now making its presence felt in Melbourne with several recent store openings," Savills Australia retail director, Michael Di Carlo said.
"This, the fifth CBD store, capitalizes on what has been a very busy corner ideally suited to a convenience outlet with the large numbers of office workers in the area and the late night trade from the pub, bars and nightclubs along Queen Street,’’ Di Carlo said.
EzyMart has around 187 stores, mostly in Sydney, started by Jordanian-born Maher Magableh in 2002.
</body></html>

EzyMart continues expansion with Melbourne CBD retail lease

<html><body>
A retail store in Sydney’s newest economic precinct, The Quay, has been sold for $2.95 million to a Hong Kong investor.
Shop 7, at 61 to 79 Quay Street is 82 square metres and is located near Central Station, Darling Harbour and Chinatown. It is currently being leased by the Chinese noodle bar- Two Sticks, on a new five year lease with two five year options. Two Sticks became popular in Sydney after opening a store in George Street earlier in the year.
The space will receive $180,000 per annum in gross rental income and comes with a fixed four percent annual increase. 
The property was sold by Andy Hu of Knight Frank, on behalf of Connoisseur Investment. Hu said properties such as these are rarely put on the market.
"We have seen a large number of offshore investors especially from Hong Kong, actively searching for quality prime strata retail investment opportunities and the investment yield has tightened further due to limited supply on the market," Hu says. 
</body></html>

owisniewski-RiYLqnXfKH

Hong Kong investor snaps up retail store in Sydney's The Quay

<html><body>
The Australian winemaker Wolfgang (Wolf) Blass has sold his Noosa Village Shopping Centre for $25.1 million to the ­Australian Property Opportunities Fund No 1.
Blass has owned the Woolworths-anchored centre since 1996.
The 4,400 square metre property was sold on a yield of 8% by Chesterton’s Glenn Conridge.
The $240 million Australian Property Opportunities Fund is managed by Fort Street Real Estate Capital.
</body></html>

Retail

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Retail

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News