National property developer Goldfields has secured permit approval and appointed Victorian residential builder Ironside to begin work on The Brightly, an 11-storey, wellness and lifestyle-focused mixed-use development in Richmond.

<a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has partnered with Dexus Real Estate Partnership Fund 1 (DREP 1) as co-investor and delivery partner in the <a href="https://www.apartments.com.au/new-apartments/the-brightly-9-15-brighton-street-richmond-vic-3121">Brighton Street project</a>.

With architecture and interiors by design practice Cera Stribley, The Brightly will feature 100 apartments, a resident-only wellness space, elevated dining experiences including a private dining room and a rooftop garden lounge, and ground-floor retail designed to integrate with Richmond’s local character.

The wellness space will feature a hot magnesium pool, cold plunge, steam room, sauna, and a vitamin-infused drinking station for refreshment and rehydration.

The Brightly’s focus on wellness extends to the rooftop landscaped by award-winning landscape architect Jack Merlo. It will feature canopied retreats and panoramic views of the Melbourne CBD and Richmond Hill treetops. Residents can also host guests with a private bookable dining space on the rooftop garden lounge and an indoor option on the first level.

Cera Stribley’s architectural vision drew inspiration from the surrounding area, using the flowing form of the train lines to shape the façade and create a dialogue between the building and Richmond’s rich history. The design features a four-level podium lined with lush greenery, honouring the suburb’s character and streetscape through its scale and materials.

There will be a choice&nbsp;of one-, two- and three-bedroom apartments, along with 19 exclusive sub-penthouses and penthouses, for prospective purchasers.

Lachlan Thompson, Goldfields’ CEO, said The Brightly will define a new kind of urban luxury for Inner East living.

“By drawing on Richmond’s vibrant mix of culture and hospitality, we’ve combined a lifestyle centred on wellness,” Thompson said.

“Its proximity to Melbourne's sports and entertainment precinct, the CBD, parks, and public transport makes it a prime location for both young professionals and those seeking a lifestyle change. What we’ve created is something remarkable - it’s real, it's Richmond, and it’s refined."

Dexus Real Estate Partnership Fund 1 Fund Manager, Jason Howes, said the Brightly is a high-quality investment in a high demand area with limited residential stock expected to be added in the coming years.

“Partnering with Goldfields, we are delivering a project that will redefine lifestyle focused urban living, offering residents exceptional design and amenities in one of Melbourne's most vibrant suburbs,” he said.

Onsite demolition is underway, with construction set to commence in April 2026 and completion targeted for late 2027. The Brightly will launch to market in mid-2026.

[smartcode_project_cta:default project_id=146631]

Joel Robinson

Goldfields greenlit for The Brightly, Richmond apartment development

The Allan Labor Government has revealed the remaining 23&nbsp;Train and Tram Zone Activity Centres as part of their plan to try and encourage development around some of Melbourne's most connected suburbs.

The new zones includes&nbsp;four smaller ‘neighbourhood centres’ to plan for more modest growth.

<ul>
	<li>Five are connected to the new Metro Tunnel and are now experiencing more services: Caulfield, Springvale, Noble Park, Yarraman (neighbourhood centre), and Dandenong stations.</li>
	<li>Eight are along the Frankston Line, which has recently returned to the City Loop: Hawksburn, Toorak (Beatty Avenue), Armadale (High Street), Malvern (Glenferrie Road), Glen Huntly, Ormond, Bentleigh, and Mentone stations</li>
	<li>Four are along the Sandringham Line, which will see an increase in services later this year: South Yarra, Prahran, Windsor and Elsternwick stations</li>
	<li>Three are on the Belgrave/Lilydale Line and benefit from five-minute peak services on average between Ringwood and the city: Blackburn, Nunawading, and Mitcham stations</li>
	<li>Two neighbourhood centres on the Alamein Line: Ashburton Station, plus a combined centre for the two closest stations on the metropolitan network Riversdale &amp; Willison stations</li>
	<li>One neighbourhood centre, Toorak Village, is a built-up area along the Route 58 tram.</li>
</ul>

The <a href="https://spatial.planning.vic.gov.au/activitycentre/">draft maps</a> will now be subject to detailed community consultation.

A similar process occurred for the first 10 pilot Activity Centres, with clear changes made as a direct result of this community consultation.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/vic/50-new-train-and-tram-zone-activity-centres-to-encourage-new-apartment-development-across-melbourne">50 new ‘train and tram zone’ activity centres to encourage new apartment development across Melbourne</a>

The final train and tram zones will set clear expectations on where new homes can go, cutting out delays, uncertainty and red tape and getting homes off the ground. The remaining two in inner-Melbourne that cover the entire Local Government Areas of Melbourne and Yarra, will go through a separate process.

In the immediate ‘core’ the plans allow for more homes in taller apartment buildings.&nbsp;Some cores have heights of six storeys, while others have up to 20 storeys, only when it is in line with those councils’ planning work.

Eligible buildings across the core will be ‘deemed to comply’ with planning rules and be exempt from VCAT review. Applications in the core that exceed the specified height of the site are not eligible for this fast-tracked pathway.

In the walkable catchments that surround the core, the plans propose gentler height limits and more low-rise apartments and townhouses. Heritage and landscape overlays will stay in place.

Inner catchments, representing up to a five-minute walk from the station or centre, propose limits of four storeys, or six storeys on larger blocks of more than 1,000 sqm, while outer catchments, representing up to a 10-minute walk from the station or centre, propose limits of three storeys, or four storeys on larger blocks of more than 1,000 sqm.

By 2051, train and tram zones will help deliver more than 300,000 new homes, with final plans for all 50 new centres expected to be completed by mid this year.

“We want more Victorians to have the opportunity to live close to public transport, their loved ones, and the things that matter to them,"&nbsp;Minister for Planning Sonya Kilkenny said.

“Whether it’s making it easier to build homes close to public transport, townhouses in our inner suburbs, or family homes with a backyard, our planning reforms are all about giving more Victorians real housing choice.

“While we’re focused on giving more young Victorians the opportunity to have a home of their own, the Liberals are blocking them from being built. They oppose more homes near transport, jobs and services.”

Toorak and South Yarra earmarked for greater density as VIC Gov releases final Train and Tram Zone Activity Centres

Glen Waverley’s housing shortage is set to be closed by 50 per cent with the approval of 795 new apartments which will rise from a former carp park in the heart of the suburb.

The plans, lodged by <a href="https://www.apartments.com.au/developers/sunkin-property-group">Sunkin Property Group</a> and now approved by the Victorian State Government Development Facilitation Program, will transform the 6,114 sqm carpark at 281 Springvale Road, into an $800 million, mixed-use residential and commercial development in the metropolitan activity centre.&nbsp;

“281 Springvale Road has received planning approval for a mixed-use, high-density development that will provide much needed homes in Melbourne’s middle-ring suburbs, including affordable housing," Sunkin's GM of Property and Development Lloyd Collins says.

"We worked closely with key stakeholders, the Department of Transport and Planning, Suburban Rail Loop Authority and Monash City Council to achieve an integrated design with an activated retail ground level that will add to the success of Glen Waverley.

Glen Waverley’s population is projected to grow by 9 per cent by 2031, with an additional 1,600 dwellings required to &nbsp;service the area.

Around 1,000 sqm of the former carpark has been retained by Monash City Council for a new Civic Plaza, creating a central meeting point and public transport link for the local community. &nbsp;

Sunkin Property Group acquired the site from Monash City Council in 2024. The site will remain open as a public carpark until development commences.

[smartcode_project_cta:default project_id=149491]

$800 million, 800-unit development permit fast-tracked for Glen Waverley carpark

UAE developer <a href="https://www.apartments.com.au/developers/arada">Arada</a> is continuing to unveil its billions of dollars of residential development it is set to deliver in Australia.

Following on its plans for <a href="https://www.apartments.com.au/news/nsw/arada-pitches-castle-hill-apartment-plans-ahead-of-2026-launch">431 apartments in Castle Hill</a>&nbsp;and the 2025 bail-out of construction firm Roberts &amp; Co so it can build its own developments, Arada&nbsp;has sought the NSW Government's approval for three towers in the Campsie town centre.

The project, dubbed One Campsie, has been designed by Woods Bagot and will deliver 346 apartments to Beamish Street across three interconnected towers rising 24, 32, and 39 storeys.

According to the Woods Bagot Architectural Design Report, the design seeks to “redefine the urban experience of a rapidly transforming town centre,” delivering housing above an activated ground plane that integrates civic and commercial uses. The design adopts a three-part vertical composition, stepping and articulating the tower to reduce visual bulk and respond to its varied urban interfaces.

<img alt="First Look: Arada unveils 39-storey mixed-use tower for Campsie town centre in State Significant Development bid" data-entity-type="file" data-entity-uuid="f515807f-7277-4ea5-8b2b-a5718514f30a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campsie%20podium.png?VersionId=J3oSJpOvye8gpg1kjagODjdhOb0Cl28I" />

At street level, the scheme places significant emphasis on public domain upgrades. A new civic plaza is proposed opposite the Orion Theatre, alongside a landscaped pocket park and a through-site pedestrian link connecting Beamish Street to Campsie Street and Ninth Avenue. The Urban Design Justification Report states that the proposal “builds on Council’s Master Plan by applying a place-led urban design framework that responds to the site’s unique conditions and enhances pedestrian experience and public benefit.”

The documents note that the development aligns with the Master Plan’s intensification strategy for sites within walking distance of the Metro station, while seeking to retain solar access to key public spaces. As outlined in the Urban Design Report, the proposal delivers “intensification within walking distance of the Metro Station while retaining solar access to key parks."

<img alt="First Look: Arada unveils 39-storey mixed-use tower for Campsie town centre in State Significant Development bid" data-entity-type="file" data-entity-uuid="586ad606-a84f-49cc-b715-fc3ecb731205" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campsie%20podium%20a.png?VersionId=gNHaD.Os8yW4LVOdsJIdmmhlgQArs0Gm" />

Woods Bagot’s design narrative also draws on local history and Aboriginal cultural context. The Architectural Design Report references engagement with Wangal Country and the Cooks River landscape, seeking to embed a connection to Country through material selection, planting, and public art integration. The broader vision, as described in the report, is to create a building that functions as a “community catalyst, not only as a place to live, but as a vibrant destination for work and play that brings people together, supports local culture, and contributes meaningfully to the civic identity of Campsie.”

<img alt="First Look: Arada unveils 39-storey mixed-use tower for Campsie town centre in State Significant Development bid" data-entity-type="file" data-entity-uuid="f1bc9a44-0c1a-4e3f-8b27-38070b0d2744" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_2.png?VersionId=1JmMWg6jOU1rPpS9hCxy8s8H48xc0EiM" />

Located at 124–142 Beamish Street and 16–18 Ninth Avenue, the site occupies a key stretch of Beamish Street, Campsie’s traditional high street, characterised by fine-grain retail, multicultural dining, and proximity to civic infrastructure including the Orion Theatre and Canterbury Civic Centre. The proposed civic plaza and pocket park aim to strengthen this interface, formalising connections between retail frontages, public transport, and community facilities.

If approved, One Campsie would mark one of the tallest and most ambitious additions to the suburb’s skyline, reflecting the broader shift toward higher-density living around transport nodes in Sydney’s middle-ring centres.

First Look: Arada files for trio of apartment towers in Campsie town centre

Syd​ney builder-developer Scion has lodged a State Significant Development Application (SSDA) for a 22-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/96-anzac-avenue-west-ryde-nsw-2114">96 Anzac Avenue, West Ryde</a>, marking a significant step in the transformation of the Victoria Road gateway precinct.

Designed by Turner, the proposal would replace an ageing two-storey commercial building with 145 apartments and 29 co-living rooms, above ground-floor retail and three basement levels of parking.

The 3,149 sqm site sits just 150 metres from West Ryde train station, at the edge of the suburb’s retail core and diagonally opposite Anzac Park. It occupies a prominent corner with frontages to both Anzac Avenue and Victoria Road, positioning it as a key transition point between established residential neighbourhoods and the commercial centre.

The scheme is being advanced under the Housing Delivery Authority pathway as a State Significant Development, alongside a concurrent rezoning to lift the site’s height and floor space ratio controls.

Turner says in the Architectural Design Report that the proposal "responds to a unique opportunity to support the revitalisation of West Ryde through the delivery of a landmark development that combines high-quality residential offerings with enhanced public realm and active ground plane uses.”

Scion will be pushing height almost five times higher than what had been pitched for the site before.

Turner says the increased scale aligns with Council’s strategic direction for the precinct, including the West Ryde Town Centre Revitalisation Strategy (2019), the Draft Masterplan (2021), and the West Ryde–Meadowbank Renewal Strategy (2023).

“The increased height and density proposed aligns with Council’s evolving strategic direction for the precinct, as outlined in the Draft Revitalisation Strategy (2019), the 2021 Draft Masterplan, and the broader West Ryde–Meadowbank Renewal Strategy (2023), which collectively call for higher density, transit-oriented development and design excellence."

Turner describes the vision as establishing “a contemporary, mixed-use development that contributes positively to the West Ryde town centre.”

<img alt="West Ryde" data-entity-type="file" data-entity-uuid="c5c22c11-92b8-4ca6-b77b-b5848ae0176d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-02-12%20at%202.41.34%E2%80%AFPM.png?VersionId=aom0z8azYDw7Hl6.A6vDbCom5ozZICn5" />

The architectural response has been shaped by the site’s gateway role along Victoria Road and its proximity to Anzac Park and surrounding heritage elements, including the Sydney Water pumping station opposite the site.

The design process also incorporated consultation around Connecting with Country principles. The design report outlines engagement with Cultural Heritage Consultants Artefact and Aunty Julie, a Burruberongal woman of the Darug Nation, informing planting selection, materiality and potential public art opportunities.

Turner says the scheme aims to optimise the site’s capacity while balancing yield and amenity.

“The proposed scheme seeks to optimise the site’s potential by balancing yield, amenity, and urban integration. It will deliver a high-quality, mixed-use precinct that supports West Ryde’s ongoing transformation into a connected, accessible, and liveable centre."

Scion recently completed the build of its own development, The Sterling in Lane Cove. They are currently building Chatham in West Ryde, just 500m from the new proposal. Those 62 apartments will complete later this year.

First look: Scion pitches tower plans for West Ryde

Chris Lang

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The first thing you need to do is come up with some creative ways to address this and still maintain your sanity, at the same time.
But no matter what your approach may be, there are several things you always need to do.
1. Secure (or compile) a Target List of Potential Tenants
<ul>
<li>This may be by geography (ie: businesses located in the surrounding area); or</li>
<li>It may be by business category (ie: types of businesses you feel your property would ideally suit).</li>
</ul>
The geographical approach is best suited to industrial property.
In which case, you simply get in your car and drive around the nearby streets — noting down the firms who occupy premises of roughly the same size as yours.
But what about the list by business category?
No matter how old-fashioned as this may sound, you will find it best to start with a hard copy of Yellow Pages.
Using your category list, you look up those specific business types located in and around where your property is located.
Exactly how many categories (and how far you spread from your property) is up to you. However, I would probably be suggesting eight to 10 business categories; and maybe as far away as 5 kilometres.
In any event, you should be looking to come up with a list of around 300 firms to call. That way (and based upon my 2% success rate), you should then end up with between five or six potential starters.
2. WHO is the Key Person you should speak to?
Interestingly, it's not always the CEO. Sometimes it will be the office manager; other times, maybe the financial controller.
You may need to have someone else call up beforehand, to establish exactly who the decision-maker is so that you can ask to be put through to that person, when you call.
Now you've compiled your list of target firms to contact and identified the key people involved, you may find it helpful to actually role-play a couple of very successful tele-scripts.
Bottom line: Hopefully, this has gives you a few fresh insights into just how easy it is for you to make your cold calls and be successful — whenever you have a vacancy, even in a tough market.
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chrislang-EQKojcgJPV

What can you do when your tenant leaves? Chris Lang

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Commercial properties are mainly seen as a longer-term (at least three year) investments. And you tend to buy them for their regular, high yields; as well as for some good capital growth over time.
Even so, an investor with a little knowledge and experience can easily find properties able to be "upgraded" and then on-sold for a quick gain.
Typically, this would involve you in improving the income stream from your property; and perhaps the security of that income. Both of which would result in a boost to the property's overall appeal and value.
Your Options for a Fast Turnaround
There are a number of different ways you can achieve this.
<ol>
<li>
Undetake an Upgrade The simplest strategy would be to buy a run-down property on a short-term lease, and renovate it. More often than not, you can keep the existing tenant; and simply extend the lease on a higher rental. 
</li>
<li>
Properties are sometimes Under-let Alternatively, you might be able to find a property with a lease that does not reflect current market rental. Renegotiating that lease would lead to a higher rent, thereby boosting the value of the property. And naturally, longer leases and better-quality tenants will always make your property worth more. 
</li>
<li>
Maybe Poor Management Quite often, you will also come across some poorly managed properties.For example: A block of shops might have several vacancies, or tenants who attract little business. Changing the tenancy mix (to improve the area's appeal) tends to attract better tenants, and will also bring in higher rents. 
</li>
<li>
Watch for Emerging Trends Simply spotting opportunities within improving (or growing) neighbourhoods — such as inner-city suburbs enjoying an influx of upmarket residents — is another good short-term strategy. 
</li>
<li>
Initiate Strategic Vacancies With experience … you may even look to buy vacant buildings, "trick them up" and lease them out. But you should really engage a team of experts, to guide you with a strategy like this.Then you can decide whether you wish to hold them as long-term investment; or turn them over, to make a short-term profit. 
</li>
<li>
Perhaps a Change of Use By using a little imagination, you can easily discover ways to completely change the use of a property — by turning a warehouse into a restaurant, for example, would also serve to significantly boost of the property's rent andvalue. 
</li>
<li>
Study Market Cycles Timing the market is another viable short-term strategy. As with the share market, Commercial property can go through periods when values may not change much, followed by periods of sharp appreciation. The secret lies in knowing where you are in the current cycle.
</li>
</ol>
Bottom line: As you will have noticed, none of this is exactly rocket science. But hopefully, it provides you with the framework to perhaps think "outside the box" with some of your own acquisitions.
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Seven ways to add value to a commercial property fast: Chris Lang

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For some investors, the question is: "Where do I start?" And that's a reasonable question when buying commercial property is not your mainstream activity.
So, let's quickly dissect the process.
<ol>
<li>Shortlisting your Possibilities This involves both market research, as well as matching up your investment objectives. And to help you <a href="https://itunes.apple.com/au/app/hireturn-filter/id716495090?mt=8" target="_blank" style="font-size: 12.1599998474121px; line-height: 1.3em;">I've put together a free app</a>, which walks you through how to do this in a flash. </li>
<li>The Final Judgement This is where you take the 18 components behind a thorough financial analysis, and distil them down into a single figure — being the internal rate of return. This then enables you to quickly compare your opportunities, on an after-tax basis. </li>
<li>
Ensure you don't Overpay Unlike with residential, commercial property doesn't always value up at what you pay for it. Therefore, you need a mechanism in place to provide you with the correct figure before you commit to purchase. 
</li>
<li>Negotiating the Best Deal Once again, this can prove difficult for most people — particularly, when you're not purchasing property every day. So, here's something that will <a href="https://commercialpropertymadeeasy.com/negotiating-secrets3/" target="_blank" style="font-size: 12.1599998474121px; line-height: 1.3em;">help you become a master negotiator</a>. </li>
<li>
Validating your Purchase You may think you've just bought a really great property. But you should still reserve the right to confirm that — particularly, for properties worth around $1 million or more. 
</li>
<li>
Locking in your Loan Terms Many investors tremble at the thought of applying for finance. That's purely because they haven't discovered one simple trick — how to take control of the valuation. That way, you can turn the tables; and have the lenders competing for your business. 
</li>
<li>
Setting up your Tax Benefits Depreciation is a very handy non-cash deduction, to help in reducing your taxable income. Therefore, knowing how to maximise your claims each year is vital. 
</li>
<li>
Adding Value Once settlement has taken place, you now need to start implementing the plans you devised — when carrying out your earlier analysis for that property. This is where you beginning to generate your super growth.
</li>
</ol>
Bottom line: None of this is overly complicated; in fact, it's really just common sense.
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Eight key steps in acquiring commercial property: Chris Lang

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As a commercial property investor it's important for you to keep tabs on all the separate markets around Australia.
To help with that, a recent market update by Credit Suisse places Sydney and Melbourne CBD offices as the best performers over the next three years.
However, Brisbane and Perth are expected to deteriorate further from where they are at present.
The report anticipates a 3.5% per annum improvement in the effective rental for both Sydney and Melbourne — with vacancy rates to remain under 10% for the next three years.
And this is supported by improved tenant demand over the past 12 months.
Whereas, rentals for Brisbane and Perth are expected to fall by 1.2% and 7.2% respectively over the same period.
And their vacancy rates are likely to blow out to 22% and 19% respectively.
Unfortunately, demand for space in both these mining States has been rather weak; and the Office markets continue to suffer from an oversupply of new space.
Historically, you find the surrounding suburban areas tend to follow closely what occurs within the various CBD office markets.
That means, any increase (or decrease) in demand for space tends to create a "ripple effect" out into the suburbs — with a time-lag of a around six months.
Bottom line, for the foreseeable future Sydney and Melbourne are expected to have strong tenant and buyer demand for office property. In turn, this should provide investors with solid predictable income and capital growth over the next three to four years.
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What's happening with office markets around Australia?

<html><body>
Will lower oil prices mean improved economic growth?
The answer is both yes and no, depending upon which country you live in.
Recently, the Australian Financial Review reported an analysis by Oxford Economics, which predicted the likely effect upon GDP during 2015-16 of oil being at US$40 v US$84 per barrel.
A quick summary of that is included below.
<img src="https://commercialpropertymadeeasy.com/assets/2015/01/Oil-GDP.jpg" style="display: block; margin-left: auto; margin-right: auto;">
As far as Australia is concerned, ANZ's chief economist Warren Hogan says:"The $1 a litre petrol currently being pumped in Sydney bowsers is akin to half a 0.25 percentage interest cut."
Clearly, those oil-producing countries around the world will suffer. However, one country's loss is another country's gain.
The World Bank feels windfall savings (through price reductions) will lead to improved global economic demand — particularly, in those countries which rely upon foreign oil. And in return, this will help address the present imbalance in economic growth.
Furthermore, the World Bank predicts China's current account surplus could add between 0.4-0.7% to its GDP, during 2015 alone.
For Australia
Therefore, not only will our economy and consumers benefit from lower oil (ie: petrol) prices, but our major trading partners — China, US, India and Japan — will also enjoy advantages from lower oil prices as well.
As such, this should translate into a fourfold benefit for Australia
<ul>
<li>A decline in the present inflation rate; 
</li>
<li>Improved consumer confidence at home; 
</li>
<li>A sustained lower dollar to help exporters; and 
</li>
<li>Improved demand for what our exporters produce over the next 12 to 18 months.
</li>
</ul>
Bottom line: According to CBRE research, 2014 saw a record $26.8 billion in commercial property deals.
Office sales represented over half that total; and 23% of purchases were made by foreign investors.
With most industry experts expecting 2015 to be another strong year, improved confidence among local buyers could provide some welcome competition to those overseas purchasers.
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How lower oil prices could affect Australian commercial property: Chris Lang

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Office vacancy rates have lept towards 15% in Brisbane, Darwin, Canberra, Adelaide and Perth. This takes the national average to 12.4%, as an overall vacancy level.
However, businesses are now leasing space once again in both Sydney and Melbourne — where their vacancy rates are currently hovering around 10%, according to JLL.
Tenant demand for space under 800 square metres has been strong — with technology firms, investment banks and business services expanding. Compared with other capital cities, Melbourne enjoys demand from a far wider profile of tenants.
By 2016, the Property Council of Australia is predicting a vacancy rate of under 9% for Sydney and Melbourne. Whereas, the other capital cities are expected to still be up around 16% (CBD Office markets are considered "in balance", with a vacancy rate of between 6% to 8%).
<h3>Offshore Buyer Demand</h3>
Overseas investors have been responsible for boosting sales of commercial property to nearly $11 billion during the September quarter. Their contribution was about $4.4 billion and accounted for half the number of actual sales.
Interestingly, Singaporean investors (at $2.8 billion) have clearly outperformed Chinese investors (at $518 million).
While many of the purchases were made within the various CBDs, there will be an obvious flow-on effect to the inner-city suburbs around most Australian capital cities.
Furthermore, there were a significant number of purchases made of lower-grade office buildings — which are planned for either development (or conversion) into apartments.
<h3>Two-fold Effect</h3>
These projects will obviously help in reducing the overall vacancy rate around the country, by effectively withdrawing whole buildings from the market.
However they will also create added concern for those fearing an unhealthy oversupply of inner-city residential accommodation, within our capital cities.
Bottom line: Overseas investors are clearly seeing numerous opportunities here in Australia. And their increased activity over the past year has certainly taken many local investors by surprise.
Provided you base your purchases upon underlying fundamentals, the next four to five years is looking rather rosy for commercial investors.
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Commercial property: State of the nation

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No longer are Australia's main capital cities' office markets in sync.
During the last century, the CBD markets seemed to operate within a fairly regular 18-year cycle — in other words, from "peak to peak".
However, all at ceased when the global financial crisis hit in 2008.
In the lead up to that, developers in Sydney and Melbourne had predominantly undertaken projects with significant tenant pre-commitments.
Brisbane and Perth had seen a huge amount of speculative development occur — driven by the hype of the mining boom.
<img src="https://his-best.biz/assets/2014/08/CBD-Offices.jpg" alt="CBD-Offices">
Source: Property Council of Australia, via Fairfax.
The Wash Up?
As the table above confirms, there is now a massive disparity between the various capital city office markets.  
<blockquote>
Sydney and Melbourne were the only cities to improve their vacancy.
</blockquote>
As you can see, the latest PCA survey shows Sydney and Melbourne were the only cities to improve their vacancy for office space, over the past six months.
For Brisbane and Perth, vacancy rates have clearly blown out, while demand is actually falling.
Over the period, you saw the vacancy rate for Sydney decline from 9% to 8.4%. Similarly, the rate for Melbourne dropped from 8.7% to 8.5% and sits at around just 4%, for Docklands.
The Mining States
By contrast, the vacancy rate in Brisbane rose from 14.2% to 14.7%. It will most likely hover around this level for the next few years.
The Perth market is not far behind — with its vacancy rate rising from 9% to 11.8%, over the past 6 months. As with Brisbane, demand for space has declined; and Perth's vacancy rate may creep even higher, over the next few years.
Looking Forward
Since late last year, the Sydney and Melbourne markets have certainly improved. And you are already seeing major investment from overseas buyers — keen to capitalise on the upturn, and rising prices.
Unfortunately, Brisbane and Perth are probably lagging between three to four years behind — because of the huge amount of vacant space needing to be absorbed.
Bottom line: You can expect the Sydney and Melbourne office markets to grow solidly over the next four or five years — and are likely to peak around 2019/20.
That may well be the time for you to switch your investing to Brisbane and Perth — as they will then be enjoying their recovery phase.
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There are now massive disparities between capital city office markets

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One question often asked by inexperienced investors is whether or not you can manage your own commercial property.
And clearly, the short answer is: Yes, if you know what you doing.
However, owning a commercial property means that you do have certain legal responsibilities and among them are your property's compliance with the various essential services requirements under current building regulations.
Obviously, the rules and regulations will vary from state to state. But nonetheless, it's something you need to be fully informed about.
For example: The objectives of the Victoria Act (from July 1994) include:
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<ul>
<li>To establish, maintain and improve standards for the construction and maintenance of buildings;</li>
<li>To facilitate the adoption and efficient application of national uniform building standards and the accreditation of building products;</li>
<li>To enhance the amenity of buildings and protect the safety and health of people who use buildings;</li>
<li>To facilitate and promote the cost-effective construction of buildings; and</li>
<li>To provide an efficient and effective system for issuing building and occupancy permits.</li>
</ul>
</div>
You will find the Act sets out the legal framework for regulating construction of buildings, building standards and maintenance of certain building safety features.
<h3>Your Obligations</h3>
As a landlord, the regulations require you:
<ol>
<li>Identify and inspect all essential services to specific standards and frequencies.</li>
<li>Keep hard-copy records of inspections on site.</li>
<li>Complete and display the annual essential services report and the occupancy permit in the building.</li>
</ol>
Buildings constructed before July 1994 are not required to have an annual essential services report. Nonetheless, all the safety systems must be properly operating and maintained.
This would include things like exit signs and paths of exit; and therefore, it would be prudent for you to keep records of all your maintenance checks.
However, if you were to undertake significant upgrade works to an older building you would then be required to fully comply with current day regulations.
Bottom line: While compliance may seem somewhat confusing and onerous, this is something your managing agent will be able to co-ordinate on your behalf to ensure you meet all your legal obligations.
And therefore, the long answer is that it would be in your best interests to appoint a competent managing agent — rather than try to muddle through on your own.
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The commercial property regulations and obligations investors need to know

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An article in the weekend Financial Review opened with:"Macquarrie Group, a bellwether for the strength of the office leasing market, is expanding."
And this clearly accords with a recent report released by BIS Shrapnel, which confirmed the office recovery would be stronger in "service and trade exposed markets like Sydney and Melbourne, but weaker in the mining-based markets such as Perth and Brisbane".
<img src="/images/2014/05/06/lang%20may%207%20one.png" alt="">
Source: Knight Frank/Australian Financial Review.
For Melbourne, you are now seeing strong demand in and around the city fringe — mainly within Southbank and the Docklands precinct.
Developers in these areas enjoying obvious cost advantages, which are then reflected in a lower rent profile for their prospective tenants.
And this is what led the likes of ANZ and NAB to relocate to Docklands, over a decade ago.
A growing number of major corporate tenants are progressively realising they no longer need be located within the heart of Australia's CBDs.
Instead, they can pre-commit to prime-grade Offices at very competitive rentals — and have that accommodation designed and fitted out, to meet their specific needs.
And this demand appears to be flowing through to established suburban markets as well.
With most of these new developments having significant pre-commitment from major tenants … this should curb the tendency for speculative development, over the next 3 to 5 years.
And this will help safeguard against an oversupply of space, within the Sydney and Melbourne office markets.
 
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Demand for office space on the improve

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The RBA recently confirmed a neutral bias, when it announced its latest decision to keep the official interest rate on hold.
Inflation appears to be relatively steady — and still well within the RBA's stated band for comfort.
Furthermore, the feedback from the residential market is that house prices in Sydney and Melbourne now appear to be levelling out.
The RBA was keen to see the residential market slow somewhat. However, if that doesn't remain the case, it may need to look to increase in interest rates.
In any event, the RBA has now signalled the next direction will be upwards from here. And the first sector to be affected will be residential property, as mortgage payments increase.
What does that mean for commercial property? 
As the interest rate rises, consumers now have less to spend. And this quickly impacts upon retail sales — which in turn, can adversely affect the appeal of retail property as an investment.
Generally, this decline in sales tends to occur with a three to six months time-lag, from when interest rates start to rise.  
Right now, retailers are already reeling from poor trading profits— through a combination of the impact of growing online sales, plus the recent influx of competition from some major overseas traders.
Therefore, any increase in interest rates from here will only serve to further affect the profitability of an already struggling retail sector.
<blockquote>
Any increase in interest rates from here will only serve to further affect the profitability of an already struggling retail sector.
</blockquote>
As you will appreciate, the industrial sector is principally logistics and distribution. Therefore, as retail activity slows, you generally see a flow-on effect for industrial storage space. And previously, this has occurred with a further lag of about a six to nine months.
However, with greater diversity of users now seen within the Industrial sector, any impact is likely to be far less severe than before.
How will the office sector be affected?
As interest rates begin to rise, they will have little (if any) effect upon the office markets around Australia.
This was apparently confirmed by an 80-year study conducted by the BIS Shrapnel … which confirmed there was actually no correlation between interest rates and the well-being of the office sector.
Rather, any fluctuations are driven purely through demand and supply of space — which is primarily related to the health (or otherwise) of the Australian economy.
Bottom line: Despite the intrinsic appeal of retail investment property, you need to be mindful of the underlying strength of your tenant (and the lease covenant) going forward.
Industrial property will prove to be a solid investment. However, your real growth will be seen within the office sector — both in the CBD and suburban office markets, which are currently heating up.
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Chris Lang

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