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.

Joel Robinson

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

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

Savills

<html><body>
A Chinese investor has bought a fully leased dental clinic at Moorabbin for $4.8 million on a 6 per cent yield, in a deal brokered by Savills' Clinton Baxter and Julian Heatherich.
The single level, <a href="https://www.realcommercial.com.au/property-retail-vic-moorabbin-502166194" target="_blank">402 South Road</a> property comprises a fully refurbished building with a brand new state-of-the-art fit-out on a 647 sqm corner, Activity Centre zoned site.
It has two street frontages. 
Baxter said the property was sold with a 10-year lease with options to global healthcare group Bupa at a current net annual rental of $287,596.
He said the clinic had been operating for nearly 70 years over which time it had established a huge client base.
"The fact that the property was fully let to an international tenant on a long term lease and that the premises’ fit-out was state-of-the-art, made this a must consider for private investors and the result reflected that,’’ Baxter said.
Heatherich said demand for such investments was at an all-time high with the huge volume of investment sales over the last few years resulting in a diminishing number of opportunities.
The vendor was a local private investor.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Chinese investor pays $4.8 million for Moorabbin clinic through Savills

<html><body>
Australian cities figure regularly and highly on the liveability index with three in the top 10 led by Melbourne.
The trend will likely continue if Australian cities, especially Sydney and Melbourne with their rapid population growth, develop transport infrastructure that leads people growth and not react to it, according to Savills.
Many academic studies had pointed to the preference among skilled workers for 'liveability' over financial rewards including a recent (2016) Savills UK study - What Workers Want – which found workers wanted their life contained within a half hour radius.
Savills Australian head of research Tony Crabb said, he expects skilled or knowledge workers to be doubly attracted to places where they can achieve both a high degree of liveability and financial rewards, but transport infrastructure is the critical element with work, rest and play accessible in 30 minutes by car, public transport, walking, or cycling, the key determinant.
"While Melbourne and Sydney were likely to attract a growing number of skilled workers with population forecasts of up to 10 million by 2050, two other cities - Adelaide and Perth – were nominated with Melbourne, by the London based Economist Intelligence Unit (EIU), as among the world's top ten most liveable," he said. EIU List of the world's most liveable cities
<ul>
<li>Melbourne, Australia</li>
<li>Vienna, Austria</li>
<li>Vancouver, Canada</li>
<li>Toronto, Canada</li>
<li>Calgary, Canada</li>
<li>Adelaide, Australia</li>
<li>Perth, Australia</li>
<li>Auckland, New Zealand</li>
<li>Helsinki, Finland</li>
<li>Hamburg, Germany</li>
</ul>
“That is a great achievement for those cities but if they wish to maintain that status, transport infrastructure development needs to be front of mind. It needs to lead population growth rather than react to it but certainly governments need to be proactive. In my experience, in cities of 10 million people, cars don't work very well. Australian cities are very car-centric and need to develop better alternatives.
“Major transport infrastructure provides the backbone of investment opportunities and it is generally around such infrastructure that industries agglomerate, but light rail, tram, bus, cycling and street networks are equally important in delivering liveability. In an age where technology allows us to be virtually mobile at a global level, the quality of local neighbourhoods has rarely mattered more,” Crabb added.
Crabb said Australia's ageing population and the boom in demand for childcare were also significant issues that governments needed to consider in terms of liveability and attracting skilled workers. “Buildings including government offices, law courts, hospitals, schools and universities, and sporting and entertainment facilities provide the basic social infrastructure for growing communities and as such are magnets for population growth, but increasingly childcare and aged care are the 'must haves' for skilled workers and their extended families. “As the population grows and ages, the provision and facilitation of these industries also presents further opportunities in the built environment for hospitals, respite care, aged care, retirement living, medical centres and allied health industries which in turn provide anchors for other real estate,” Crabb said. He said while demand for childcare services would continue to grow with opportunities for investors and developers in both neighbourhood and near-workplace crèches, nursery schools and day care, hospitals may well be viewed as the new 'mega-mall'. “Hospitals are a large piece of public infrastructure and generally do not close down. As demand for hospital services increases, the land around them becomes more valuable for ancillary services. Short-term stay accommodation, entertainment, retail, offices, consulting suites, services and parking are just some of the value-add opportunities on offer to investors,” Crabb said. He said in a globally competitive environment governments needed also to be aware of the need to cater to the requirements of an increasingly mobile skilled immigrant workforce. “Skilled migrants have a choice of countries to which they may be attracted, and so hitherto attractive countries will face competition in the form of financial inducements such as free education and healthcare, low taxes, high wages and interesting jobs as well as lifestyle, safety, security and cleanliness. “Given the diversity of attractive offerings from competitors, liveability for Australian cities needs also to factor in policy and development with a multicultural flavour,” Crabb said.
</body></html>

jonathanchancellor-7SQnKwU6yx

Transport infrastructure critical to successful cities: Savills

<html><body>
Net effective rents in the Sydney CBD office market rose significantly in 2016 across both prime and secondary buildings and the trend is expected to continue in 2017, according to Savills. 
The property firm’s Sydney CBD Office Briefing Report highlights an improved leasing environment with strong tenant demand, stock withdrawals and falling incentives resulting in significant net effective rental growth. 
Net effective rents in the Sydney CBD enjoyed year-on-year growth in 2016 of +60% for B Grade office space, +48% for A Grade and +26% for Premium. Helping this growth were sharp drops in incentives in 2016 of -34% in dollar terms for A Grade, -26% for Premium and -25% for B Grade. Net face rents rose +28% for B Grade, +14% for A Grade and +6% for Premium. 
<a href="https://www.propertyobserver.com.au/images/2017/01/24/SydCBDofficemetrics.png" target="_blank">Click here to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/24/SydCBDofficemetrics.png" alt="">
Savills Australia national head of Research &amp; Consultancy Tony Crabb said both prime and secondary rents are rising in Sydney on the back of a shrinking pool of secondary stock. 
“The scarcity of secondary space has driven up both face and effective secondary rents and has caused a similar effect, albeit more muted, in the prime market as tenants are forced to upgrade,” he said. 
“Net effective rental growth was most pronounced due to the effect of declining rental incentives as highlighted by the 60% jump in B Grade net effective rents year-on-year. There was also a substantial increase in A Grade net effective rentals (up 48%) and Premium net effective rentals (up 26%). 
“Looking forward, we anticipate that net effective rents will continue to increase, particularly for secondary and A Grade accommodation. This will be a function of continued demand from displaced tenants, the ongoing shortage of secondary stock and the ongoing effect of declining incentives.” 
Rob Dickins, Savills Australia national head of Office Leasing, said Sydney tenants will have a modest choice of options for prime accommodation in 2017 as some backfill space becomes available. 
“We estimate approximately 102,400 sq m will be released this year, however about two-thirds of this space is pre-committed. The majority of the 21,750 sq m of new supply entering the market is also pre-committed, such as the 15,000 sq m Darling Harbour Live building which CBA will occupy. These new options will be welcome news for tenants given the likelihood of further upheaval in the secondary market in 2017,” he said 
“Secondary stock withdrawals during 2016 totalled some 39,000 sq m for residential or hotel redevelopment purposes. This has effectively forced many displaced tenants to actively compete on B Grade space or upgrade their space requirements to either A Grade or Premium, as several have done. This has created upward pressure not only on secondary rents, but also in prime rents to a lesser extent.” 
“We expect this trend to continue in 2017 as further tenants are displaced owning to the withdrawal of a further 62,900sq m of mostly B Grade space for the Sydney Metro project.” 
<img src="https://www.urban.com.au/images/2017/01/24/SydCBDrents.png" alt="">
Simon Fenn, Savills NSW managing director, said the rental growth in the Sydney CBD office market is welcome news for owners and investors. 
“Sydney A Grade and B Grade markets offer investors the opportunity of increased rental returns as we anticipate continued reduction in market incentives over the short to medium term,” he said. 
“A Grade yields tightened 75 basis points during 2016 while B Grade yields tightened significantly by 113 basis points in the course of the year. Recent rental growth and the prospect of further growth bodes well for investment yields given the implications for total returns.” 
“Investment appetite from both local and international investors for core Australian office assets remains high and continues to benefit from the spread between property income yields and long-term government bond yields. This investment environment is expected to support continued investment demand for quality Australian commercial property assets.” 
Fenn said local buyers were dominant in the Sydney CBD office market during 2016, accounting for 70% of the capital transacted. Developers made up the largest portion (25%) followed by Trusts (22%) and Funds (15%) which is consistent with the high levels of development activity currently underway in the Sydney CBD. Chinese investors claimed half of the capital invested by foreigners, with US, German and Hong Kong buyers making up the remainder. 
</body></html>

Sydney office rents rose sharply in 2016, trend to continue: Savills

<html><body>
Urban renewal projects, such as the RNA Brisbane Showgrounds redevelopment are changing the face of the Brisbane fringe precinct. 
The Brisbane fringe office market comprises the five precincts - Urban Renewal (Fortitude Valley, Newstead and Bowen Hills, Herston), Inner South (South Brisbane, West End, Woolloongabba, Kangaroo Point, East Brisbane and Greenslopes), Milton, Spring Hill and Toowong and contains approximately 1.2 million square metres of lettable office space, according to Savills latest quarterly briefings.
<a href="/images/2016/11/05/Brisbane%20precinct.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/05/Brisbane%20precinct.jpg" alt="">
There are approximately 135,000 square metres of potential new office stock which could enter the Fringe office market over the next two to three years but for the present, the only office buildings under construction in the city fringe is the Southpoint development and 900 Ann St, totalling around 47,000 square metres.
The table below shows the projects under construction and those that may proceed in the medium term:
<a href="/images/2016/11/05/Brisbane%20office%20development.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/05/Brisbane%20office%20development.jpg" alt="">
Of the two remaining commercial stages planned for the RNA Brisbane Showgrounds redevelopment ‘Kings Street’, K2 remains mooted however construction on K5 is expected to begin in early 2017. In recent months, Lendlease has reportedly secured engineering company Aurecon as a major tenant, who have pre-committed to approximately 6,000 square metres.
The planned 13-level office building K2 remains in early planning stages, with construction mooted to begin mid-2017. Along with K1, the three office towers will total over 50,000 square metres net lettable area.
CDOP7 (Coronation Drive Office Park 7) while still mooted, will be the 7th commercial building within the Milton Office Park with a 12-level commercial tower, including ground level retail and an urban common area. Included in the proposal is the possibility of refurbishing a building (CDOP 09) adjacent to the site.
Tatt’s Group has on sold its 3,254 square metre Newstead site to Charter Hall who plan to build a 15-level commercial building in a joint venture with John Holland.
John Holland have also pre-committed to two floors of the new development which is expected to commence construction in the first half of 2017.
Completion is anticipated to be sometime before 2020, in line with John Holland’s current lease expires in Ann Street.
Urban renewal projects, such as the RNA Brisbane Showgrounds redevelopment are changing the face of the fringe precinct.
Along with numerous residential projects, urban renewal developments bring with them retail and café outlets as well as parks, path- &amp; bike-ways, vastly improving the amenity of the area.
This in turn is making the fringe a more attractive place for businesses to locate.
The overall office footprint of metropolitan Brisbane is also slowly expanding into neighbouring suburbs of the Fringe market, with the likes of the Hamilton Harbour and the Northshore Hamilton Brisbane Technology Park development, offering alternative modern office locations.
</body></html>

Office footprint of metropolitan Brisbane slowly expanding into neighbouring suburbs: Savills

<html><body>
The number of full floor leasing options in Melbourne has declined compared to last year, according to Savills’ latest report.
“In Savills’ Prime Full Floor Availability Report, the state of the leasing market is assessed in a different manner to standard vacancy surveys.
The report graphically shows each Premium and A grade building in the city on a floor-by-floor basis highlighting which floors are available for lease, now and in the near future, in each building including those under construction and refurbishment,” the report stated.
Results from the September 2016 Prime Full Floor Availability Report are detailed below.
<a href="/images/2016/11/15/Melbourne%20full%20floor.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/15/Melbourne%20full%20floor.jpg" alt="">
Savills recorded 135 full floors totalling 192,618 square metres available for lease in A Grade buildings, or 12.7 percent of the market analysed, down from 149 full floors recorded from a year ago.
The number of full floor leasing options available sits at 177 prime grade floors in September 2016, down from 197 full floors 12 months ago.
Full floor vacancy in both Premium and A Grade declined in the 12 months to September 2016.
Vacancy in full floors peaked at 220 in December 2015 with a previous peak of 233 prime grade floors in August 2013.
In recent months, there has been a downward trend of available options.
<a href="/images/2016/11/15/Melbourne%20CBD%20office%20quarterly%20full%20floor.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/15/Melbourne%20CBD%20office%20quarterly%20full%20floor.jpg" alt="">
Melbourne CBD grid (excluding Docklands) total office vacancy rate sits at 7.9 percent as at June 2016.
Whilst vacancy levels had been considerably lower for much of the time, an environment of increased supply levels and rising tenant migration either for upgrade or expansion is contributing to the following vacancy rates:
<a href="/images/2016/11/15/Melbourne%20vacancy.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/15/Melbourne%20vacancy.jpg" alt="">
Melbourne’s vacant office space in the CBD is generally shared by quality grades, with Prime space vacancy at 7 percent and accounting for 14 percent of the total vacancy (59 percent of the total stock) as at June 2016.
Prime vacancy in the Melbourne’s CBD office has declined from 7.9 percent recorded a year ago.
During the past 12 months, Prime quality stock remained steady with the vacancy rates declining with lift in the net absorption levels.
<a href="/images/2016/11/15/Melbourne%20vacancy%20graph.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/15/Melbourne%20vacancy%20graph.jpg" alt="">
</body></html>

Full floor leasing options in Melbourne declines compared to last year: Savills

<html><body>
Parallel to the buoyant leasing activity, strong investment appetite from all purchaser categories resulted in high levels of transactional activity in the Melbourne CBD office market, according to Savills' latest report.
Melbourne CBD’s commercial office sales (&gt;$2 million) reached $2.15 billion in the 12 months to September 2016, with significant levels of capital chasing office sector assets.
The total sales achieved in the past year were 15 percent higher than the $1.87 billion that was transacted in the preceding 12 months.
According to IPD, Melbourne CBD office property returned a steady total return of 15.7 percent, at similar levels from a year ago.
However, Melbourne office property returns are trending above the five-year average total returns of 12.2 percent.
Historically low interest rates coupled with volatile global financial markets, led investors to select core office property as a solid investment asset class.
Investment yields firmed across Melbourne CBD’s prime and secondary assets over the past year.
"Savills expects this cycle to continue its momentum; albeit at a lower rate, with investment capital beginning to chase expectations of future NOI growth," the report stated.
<a href="/images/2016/11/16/Melbourne%20office%20sales.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/16/Melbourne%20office%20sales.jpg" alt="">
Market yields in the Melbourne CBD as at September 2016 are estimated to range between 5.25% and 6.25% for A grade buildings, and between 6.25% and 7.00% for secondary buildings.
Yield compression has been evident over the last twelve months, with yields for A grade assets having firmed by 83 basis points on average, whilst secondary yields tightened by 75 basis points.
Capital values in the Melbourne CBD as at September 2016 are estimated to range from $7,200 to $11,500 per square metre for A grade buildings, and between $5,000 and $6,550 per square metre for secondary grade buildings.
Average capital values for A grade properties have delivered an increase of 22 percent over the year.
<a href="/images/2016/11/16/Melbourne%20office%20CBD%20sales.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/16/Melbourne%20office%20CBD%20sales.jpg" alt="">
The Australian dollar has depreciated by 27 percent against the US dollar from its peak in March 2013, boosting property investment, especially from foreign investors over the past three years.
Foreign investors were the most active purchaser class for the period accounting for 65 percent of the total sales by value, well ahead of domestic institutions at 26 percent.
Private investors were the third largest purchaser category amounting to 7 percent of the sales by value.
The buoyant investment environment has continued to offer investors opportunities to rebalance their portfolios.
Currently there are three assets offered for sale in Melbourne’s central office market; ANZ world headquarters at 100 Queen Street.
RMIT Building by Selected Growth Properties and 50 Franklin Street owned by a group of strata owners, who have jointly put the building on sale.
<a href="/images/2016/11/16/Melbourne%20office%20CBD%20buyer%20profile.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/16/Melbourne%20office%20CBD%20buyer%20profile.jpg" alt="">
Joint sale by multiple property owners seeking to benefit from strong underpinning investor demand has been the latest trend in Melbourne’s property market.
The Melbourne CBD achieved 22 office sales, for the value of $2.15 billion in the 12 months to September 2016, up from $1.87 billion in the prior year.
In the most notable recent sales reported, Philip Lim purchased 380 La Trobe Street for $157 million from Invesco Asset Management, while Straits Real Estate sold 114 William Street for c.$175 million.
Other major sales for the last twelve months include; part shares in Southern Cross, a 43 percent share in Bourke Place, 161 Collins Street, 1 Collins Street and 120 Spencer Street.
<a href="/images/2016/11/16/Melbourne%20key%20indicators.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/16/Melbourne%20key%20indicators.jpg" alt="">
Rental rates reflect a net effective rent on a single, whole floor in the mid-rise of a building unless specifically otherwise stated.
Discounts and premiums exist for low and high rise space and for significant occupiers.
Victoria’s economy is expected to grow at 2.8 percent in 2016-17, highest amongst all Australian states and above the national average of 2.7 percent economic growth.
It is also forecasted to grow at a higher rate than the advanced economies (1.7 percent).
Tenant demand over the next year is expected to be driven by the sectors of Healthcare, Finance &amp; Insurance and Government, with the sectors forecast to grow at 6.0 percent, 5.4 percent and 4.1 percent respectively nationwide.
Melbourne CBD’s white collar employment grew by 11,600 workers from 2011 to 2016, and it is forecast to rise by another 36,000 workers over the next five years.
Growth in CBD white collar employment is expected to increase absorption of CBD office space.
“As tenant demand continues to improve, Savills expects pre-commitment led construction to drive new development activity over the course of the next two years,” the report stated.
Tenant migration to pre-committed stock is likely to affect backfill vacancy levels. As a result, rental growth is expected to remain below economic rents, with incentives still at play; albeit at lower levels.
“Whilst, leasing activity has been muted over most period (three quarters) of the past year in the central Melbourne market, largely attributed to low business confidence, Savills has recorded a recent uptick in the take-up,” the report stated.
Latest rebound in tenant demand led to the highest level of take-up recorded since September 2011 which is also above the five year average.
“Dun &amp; Bradstreet’s Business Expectations Index (the average of the survey’s measures of Sales, Profits, Employment and Capital Investment), increased to 17.8 for the fourth quarter of 2016, up from 12.3 in the previous quarter, and is 9.9 above the 10-year average of 7.9. Savills’ anticipates optimism in Business expectations to boost growth in tenant demand, resulting into higher level of leasing activity in the near term,” the report stated.
The RBA’s follow-up rate cut in August provided some support to Business confidence, lifting it from July 2016 (+4) to Aug 2016 (+6) and further sustaining it in September (+6). Current levels of confidence are consistent with the long-run average, as reported by NAB.
“Now with the conclusion of the federal election combined with Australia’s ‘safe haven’ status, Savills expects foreign capital flow to maintain its momentum, as market fundamentals continue to improve in domestic markets compared to overseas markets which are grappling from financial markets turmoil, Brexit and uncertainty led by upcoming US elections,” the report stated.
The amount of capital seeking investment opportunities is likely to further cause yield compression, though at a much slower pace.
Although, the limited availability of stock offered for sale is likely to impede record levels of investment activity from the recent past.
</body></html>

Strong investment in all categories in Melbourne results in high levels of transactional activity: Savills

<html><body>
Savills will auction five land lots at Lindfield onsite on December 11.
The lots form part Eton Estate which comprises a total of 10 land lots.
The five remaining lots will be auctioned at a later date.
Located at 101 Eton Road, Lindfield, the lots range in size from 831 square metres to 880 square metres with a price guide starting around $1,890,000 plus.
Savills selling agent David Poppleton noted in the first week of launching there had been more than 150 enquiries.
With a median house price of $2,500,000, according to CoreLogic, Lindfield has witnessed significant growth in recent years.
Since 2011, Lindfield has seen a cumulative capital growth in median house prices of 52.6% compared to the wider Ku-Ring-Gai market at 47%.
</body></html>

Five land lots for sale in Lindfield through Savills

<html><body>
Prominent Sydney hotel owner and developer, Iris Group, has paid $39 million for a huge Newcastle site.
It comes with approval for a 55,000 square metre residential, retail and commercial development.
Savills, the selling agent agent, suggests it is one of the most significant property transactions in Newcastle in several years.
It was sold by GPT and Urban Growth NSW.
The so-called East End (Newcastle CBD) Portfolio covers four city blocks and 1.66 hectares of premium land, the majority bordered by Hunter, Newcomen, King and Perkins streets.
The property was recently DA approved by the Joint Regional Planning Panel (JRPP) for 47,800 square metres of residential, 4900 square metres of retail, and 2700 square metres of commercial space.
According to Savills Director Residential Site Sales, Stuart Cox, who managed the marketing campaign with Neil Cooke and Ben Azar, the site offered a vertical village of "the like the City had never seen before."
Iris Group CEO, Sam Arnaout said he was both excited and honoured to have won the opportunity to make a significant contribution to the liveability of the City of Newcastle.
He said while the property’s location and development approval were the most important factors, Newcastle’s surging population growth and concomitant demand for apartments along with the NSW Government’s $500 million commitment to revitalise the Newcastle City Centre were key additional considerations.
The portfolio’s existing improvements include a mix of 25 commercial and retail use buildings with a gross floor area of approximately 23,500 square metres.
They contain 81 tenancies, of which 25 are currently vacant, returning net annual income of $1.15 million.
 
</body></html>

Newcastle site sold to Sydney developer Iris Group

<html><body>
Australian Unity has paid $12,975,000 on a 7.3% yield for a fully leased office and warehouse complex at Springvale in Melbourne’s industrial south-east, in a deal brokered by Savills.
Located about 21 kilometres from Melbourne CBD, the 1651-1657 Centre Road property comprises 10,987 square metres of buildings including a 9910 square metre warehouse, and office, truck workshop and canteen components, on a 29,640 square metre site.
Savills' Chris Jones and Ben Hegerty, who negotiated the deal, said the property was sold subject to remaining lease tenure of around four years to global warehousing and freight forwarding manager, Mainfreight Distribution Pty Ltd, at an annual rental of $948,000.
Jones said the property offered secure income from a highly regarded international tenant, in an established south-eastern locality with excellent main road frontage.
Hegerty said the property last sold in February 2014 for $10.695 million to MRS/Harmony.
</body></html>

Australian Unity pays $13m for Mainfreight warehouse in Springvale

<html><body>
US based international footwear retailer Foot Locker has secured 600 square metre lease in Melbourne’s CBD.
It is one of the largest open-market Bourke Street Mall deals of the year.
The firm, one of the world’s biggest footwear retailers, with 85 stores Australia-wide, will move from its Swanston Street home.
It will double its floor space on Melbourne’s most sought after CBD strip.
According to Savills Victorian Director Retail Services, Michael Di Carlo, who brokered the deal with Damien Abela, Foot Locker has taken a ten year lease.
The rental of two level tenancy at 327 Bourke Street on the corner of Causeway Lane was not disclosed.
Mr Di Carlo said the deal was one of a number of key tenancy changes completed in the Mall over the last 12 months including Cotton On Mega moving into a new store, Optus expanding, Bardot relocating, Sunglass Hut opening a new flagship store and Michael Hill moving to the high profile corner of Swanston and Bourke streets.
"All of these changes, along with the General Pants relocation, show that large national and international retailers are still seeking high traffic strip locations where they can showcase their brand and generate strong sales.
Melbourne CBD retail and especially the Bourke Street Mall remains Australia’s pre-eminent retail destination and the location of choice,’’ Mr Di Carlo said.  
According to Savills Australia’s Q1 retail research (released in April) the CBD core market vacancy rate declined from 3.8 per cent to 2.6 per cent over the previous 12 months.
This marks the fifth consecutive year of declining vacancy despite the addition of several new CBD retail centres.
Associate Director Research, Monica Mondkar said CBD core shop vacancies had fallen 55 per cent - since a post-GFC high recorded a vacancy rate of 6 per cent in March 2011 - and were expected to remain low on the back of increased spending, Melbourne’s nation leading population growth, tourism and the continued influx of high profile global fashion brands. 
</body></html>

Savills

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Savills

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News