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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

WM Residences fills gap in Mordialloc townhouse market

Commercial Investment

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A heritage-listed hotel in Queensland’s West Ipswich has just changed hands for $770,000 through Ray White Commercial.
City View Hotel at <a href="https://www.realcommercial.com.au/property-hotel+leisure-qld-west+ipswich-501677405" target="_blank">277 Brisbane Street, West Ipswich</a> was built in 1908 and was designed by architect Brockwell Gill.
Distinguishable for its two-storey octagonal tower, the building demonstrates the characteristics of a Federation-era provincial hotel. 
The hotel includes two function rooms, bars and nine rooms currently being used for accommodation. It also has a manager’s residence and other amenities. 
The hotel is on a 1,444 sqm block of land. It enjoys good traffic exposure and the zoning is CBD Residential High Density (mixed use). 
Other features include a grand timber stairway with balustrade , pressed metal ceilings and stained glass windows.
The property was sold by Ray White Commercial’s Morrie Marsden and Les Svensson. 
The hotel is being renovated into accommodation for backpackers by businessman Hamish Parker.
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prateek24-ezbwHMbNAk

Heritage hotel in Queensland’s Ipswich changes hands

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The financial year 2015/16 marked another year of strong performance in property investment markets in Australia, says Savills Research in their latest World Office Yield Spectrum report, which was compiled along with Deakin University.
The country has attracted record amounts of foreign capital entertained by attractive yields, a stable currency and compelling economic and political metrics. 
Domestic institutions, recovering from the GFC and replacing private investors as competitive buyers once again, suddenly found themselves outbid. The large amount of capital from overseas has encouraged many investors to dispose of property, re-weight portfolios and change exposures. This led to a record 12 months of approximately $33.4 billion of turnover in commercial property. 
<a href="/images/2016/09/28/Savillsoffice.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/28/Savillsoffice.png" alt="">
Conversely, many market fundamentals demonstrated the two-tone nature of the Australian economy – some indicators deteriorated in Perth and Brisbane, many showed substantial improvement in Melbourne and Sydney. Brisbane appears to have reached a base whilst Melbourne and Sydney continue to improve.
Capital markets exhibited greater degrees of volatility throughout the year and have  finished the year weaker with the ASX200 falling 7 percent, however the Australian dollar rose 2 percent against the US dollar and 10-year bonds yields fell by 100 basis points to approximately 2%.
“Commercial property investment yields firmed across the board – a theme we have been writing about for several years now. We still do not believe it has fully run its course,” says the report.
“In some markets, fundamentals are improving rapidly. We believe this improvement will lead to further tightening in yields as investment capital starts to price in expectations of future NOI growth. This part of the yield cycle is just beginning.”
<a href="/images/2016/09/28/Savillsoffice2.png" target="_blank">Click to enlarge</a>
 <img src="/images/2016/09/28/Savillsoffice2.png" alt="">
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jonathanchancellor-7SQnKwU6yx

Record foreign inflows push commercial property turnover to $33.4 billion in FY15-16: Savills 

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SPONSORED POST
When talking property investment most people generally think residential real estate, often giving little or no thought to commercial property as a viable investment solution.
But a growing number of everyday Australians are recognising the potential of this sector and are cashing in.
In particular, a flood of mum and dad investors utilising self-managed superannuation funds are investing in small commercial properties, in what has become an extremely competitive market, but for good reason.
Commercial real estate, classified as property assets primarily used for business purposes, consists of three sectors – retail, office and industrial. Each with a range of asset classes, these sectors have their own cycle representing often very different risks and rewards.
Although some commercial properties offer investors yields akin to residential property, around 4 percent, others can achieve a return of up to 10 percent, after costs, depending on the asset class and risk rating.
The benefit of investing in commercial property is that it is characterised by longer leasing covenants than residential property – typically three, five or 10 years – with fixed or CPI annual increases and the added benefit of the tenant meeting the cost of all outgoings, including land tax if the tenant is publicly listed.
Furthermore, commercial tenants will generally take better care of a property, ensuring it is maintained and presentable.  But while also offering potential for high capital growth, the high return from commercial property investment is not without risks.
Historically, commercial property is far less predictable than residential property markets, with the potential for longer vacancy periods and poor resale for some specialised assets, influenced significantly by economic factors such as unemployment and consumer confidence.
Additionally, investment in the commercial market can sometimes be difficult due to stricter lending conditions, which may require buyers to have a minimum 30 to 50 percent deposit.
For the average investor diversifying into commercial property there are several important factors to consider. Similar to investing in residential property, location is key.
The type of commercial asset you purchase should be strategically located, paying particular attention to zoning restrictions that govern the sites potential highest and best use. Furthermore, consider the development potential of both the site and the building in instances where the current use ceases to be viable.
There are many commercial investment options, including mixed use dwellings, such as a retail shop with dwelling, which offers a double income stream, small industrial factories, strata-titled offices, retail strip shops, fast-food outlets and service stations. While the risks associated with commercial property are higher than residential, the benefits can be significantly greater.
For more information, <a href="https://bs.serving-sys.com/BurstingPipe/adServer.bs?cn=tf&amp;c=20&amp;mc=click&amp;pli=18755997&amp;PluID=0&amp;ord=%5Btimestamp%5D" target="_blank">click here</a>.
ABOUT REALCOMMERCIAL.COM.AU: realcommercial.com.au is the leading website in Australia for commercial property, attracting an average of 1.7 million visitors a month (Source: Nielsen Online Market Intelligence, Total Traffic, average calculation May-July 2015, includes app traffic from Omniture Site Catalyst as Nielsen doesn’t report on app). It is owned and operated by realestate.com.au Pty Ltd, a subsidiary of ASX-listed REA Group Limited ACN 068 349 066 (ASX:REA).
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jchancellor-FAypfDUnLy

Property investment: Commercial or residential?

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A quick overview of the latest trends in key Australian economic data.
<a href="/images/2016/09/26/Screen%20Shot%202016-09-26%20at%202.22.43%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/26/Screen%20Shot%202016-09-26%20at%202.22.43%20PM.png" alt="">
 
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<img src="/images/2016/09/26/Screen%20Shot%202016-09-26%20at%202.24.17%20PM.png" alt="">
<a href="/images/2016/09/26/Screen%20Shot%202016-09-26%20at%202.25.29%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/26/Screen%20Shot%202016-09-26%20at%202.25.29%20PM.png" alt="">
<a href="/images/2016/09/26/Screen%20Shot%202016-09-26%20at%202.26.47%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/26/Screen%20Shot%202016-09-26%20at%202.26.47%20PM.png" alt="" width="680" height="297">
Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. 
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Australian data summary table 26 September: Westpac's Andrew Hanlan

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Melbourne’s much-loved Gumbuya Park has been snapped up by the founders of Carsales.com and Jayco Caravans for $4.65 million with plans to inject more funds for a revamp. 
The investor consortium, comprising Gerry Ryan of Jayco Caravans and Wal Pisciotta of Carsales.com.au, acquired the park which is home to more than 300 animals.
The family-owned park features dingoes, cockatoos, wombats, koalas, emus and various native Australian birds. Spread on an area of 166.26 hectares, Gumbuya Park also offers rides and attractions such as paddle boats, mini cars, waterslides, pony rides, a mini golf course and toboggans. 
CBRE’s David Minty, Stephen Adgemis, Duncan McCulloch and James Beer managed the sale on behalf of the family that owns the park.
Gumbuya Park has been operating since 1978.
Minty said the incoming owners planned to inject new life into the park, which is located on the Princes Highway just outside Pakenham. 
“The buyers will look to introduce new attractions and some accommodation, helping bring the park back to its former glory” Minty said. 
“A change of hands of this iconic park will ensure it remains one of Melbourne’s most popular, small-scale amusement parks, frequented by both local residents and interstate visitors.”  
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Investor group takes reins of Melbourne’s much-loved Gumbuya Park  

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No capital city or regional city in Australia can claim to be at the peak of market cycle in valuation firm Herron Todd White's property clock for September 2016, but a number of them are rising markets.
The clock is a simple broad brush means to suggest where property markets are and what direction prices are moving in.
The closest to peak of the market is the NSW's Newcastle, which is approaching the peak of the market, according to the clock.
Among the capital cities, Sydney and Melbourne remain at the rising market position, while Canberra is at the start of a recovery cycle.
Adelaide and Hobart remain at the bottom of the market, while Brisbane and Perth are approaching the bottom. Darwin is just starting to decline.  
<a href="/images/2016/09/09/Screen%20Shot%202016-09-10%20at%2010.55.30%20AM.png" target="_blank"> Click to enlarge</a>
<img src="/images/2016/09/09/Screen%20Shot%202016-09-10%20at%2010.55.30%20AM.png" alt="">
 
HTW has also put together an overview of office market indicators, as evidenced in the following table: 
<a href="/images/2016/09/09/Officemarketindicators.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/09/Officemarketindicators.png" alt=""> 
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No office markets at peak, but plenty are rising: HTW office property clock

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Sydney offers the most attractive office investment yields at 5.62 percent among international gateway cities even as the world sees a fall in yields, says new research from Savills and Deakin University.
The World Office Yield Spectrum, which compares 54 cities across Asia, Europe, the United States and Australia, confirms that office property is the asset class of choice as investors scour global cities for the most attractive yields in the most secure markets.
Apart from Sydney, LA West and San Francisco are the only other gateway cities offering yields above 4.5 per cent. 
The report found yields had firmed by an average 32 basis points across the 11 gateway cities since December 2014 with both Munich and Tokyo’s yield falling 55 basis points, Hong Kong 40 basis points and Sydney a whopping 100 basis points. Singapore, at 4 per cent, saw yields soften 15 basis points in response to slower economic conditions.
Of the 54 cities, London’s West End, at 2.82 per cent, was the only other city to record a sub 3 per cent yield with Hong Kong, while Ho Chi Minh City (9.36 per cent) and Hanoi (9.00 per cent) offered the highest yield, however those yields reflected a perception of greater investment risk.
Report editor, Savills’ national head of Research in Australia, Tony Crabb, said 10-year bond yields had fallen by an average of 50 basis points around the world in the past six months, averaging around 1 per cent with negative rates in Japan and Germany.
“Property yields have continued to firm but bond yields are falling faster and, in that context, investors are viewing risk premiums of between 2 and 3 per cent in most office investment markets as fair value,’’ Crabb said.
The uncertain economic environment in most markets globally means office risk premiums would offer better value and hence drive greater demand and even firmer office yields, he added.
<a href="/images/2016/08/17/Screen%20Shot%202016-08-17%20at%2010.50.20%20PM.png" target="_blank">Click to enlarge</a>
 <img src="/images/2016/08/17/Screen%20Shot%202016-08-17%20at%2010.50.20%20PM.png" alt="">
“Much of what happens in 2017 and beyond will depend on the course the US Federal Reserve takes with regards to interest rates. Chairman Yellen has made it perfectly clear that movements will be ‘data dependent’, so we wait.”
“The movements in US interest rates will determine how currencies behave, how trade flows and how capital moves around the world,’’ Crabb said.
He said the outlook for office yields was likely to be one of further compression, particularly in gateway cities like Sydney where strengthening fundamentals were beginning to drive rental growth.
“Firming yields in many instances could be viewed as counter-intuitive as soft leasing markets have resulted in very high incentives and correspondingly low net rents, and so any growth in net effective rents, and thus returns, is certainly going to drive even greater demand for office property and ultimately firmer yields,” he said.
In Australia, large capital from overseas had encouraged many investors to dispose of property, rebalance portfolios and change their exposure which had led to a record 12 months turnover of nearly $33.4 billion in commercial property sales, said Crabb.
However, market fundamentals show the two-tone nature of the Australian economy with some indicators deteriorating in Perth and Brisbane, in contrast to improvements in Melbourne and Sydney. 
“Commercial property investment yields have firmed across the board but we still do not believe it has fully run its course. In some markets, fundamentals are improving rapidly and that improvement will lead to further tightening in yields as investment capital starts to price in expectations of future NOI growth. This part of the yield cycle is just beginning.’’
 
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Commercial property investment yields have firmed across the board: Savills/Deakin University research

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A local investor has bought an office property in Melbourne’s Richmond for $665,000 at a Teska Carson auction, well above the reserve price.
The 1A Gordon Street building comprises fully-fitted 170 square metre office space on three levels. It is close to Richmond’s retail and entertainment precincts.
Selling agent, Teska Carson’s George Takis, said the marketing campaign got good response from both investors and owner-occupiers, including SMSFs, looking for well-placed investments in the inner eastern suburbs.
The property was sold with vacant possession 
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Boutique office property sells for $665,000 at Melbourne auction

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A Woolworths-anchored shopping centre in Queensland's Logan City has been snapped up for $38.25 million by an Asian investor, while another in Brisbane's Banyo is up for sale.
The newly developed Woolworths Cornubia is 30 km south-east of the Brisbane CBD and 45 km north-west of the Gold Coast.
The deal translated to a net yield of 6 percent.
CBRE’s Peter Rossi and Michael Hedger brokered the deal, which was settled through an expressions of interest campaign.
“In the current market conditions, there has been a flight to quality for retail assets,” Rossi said.
“New Coles and Woolworths centres are being well received and are achieving tight yields at or better than 6%.”
The property comprises the new 5,309 sqm neighbourhood shopping centre along with a 1,393 sqm medical/professional centre. Woolworths is the anchor tenant, alongside 13 retail tenancies, with the adjoining complex comprising a major medical centre/pharmacy and four professional suites.
Woolworths accounts for circa 55% of the income stream.
The centre was acquired by an investor with existing retail interests in Brisbane.
The transaction follows another Woolworths’ sale in South East Queensland's Everton Park. The Woolworths and Masters centre was acquired for $70 million by Singaporean real estate investment managers Rockworth Capital Partners.
The next test of Queensland's retail market involves another Woolworths-anchored shopping centre in Banyo.
<img src="/images/2016/07/22/woolies-2nd-small.jpg" alt="" width="641" height="427">
The site was acquired from Woolworths by building company Adco, which then developed the neighbourhood centre based on a 20-year lease to the supermarket giant.
The sale campaign is through CBRE’s Joe Tynan and Justin Dowers.
The centre offers a fully leased net annual rental of circa $2.07 million.
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Woolworths centre in Queensland's Logan City snapped up for $38.25 million by Asian investor

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Market competition in the childcare space has seen yields sharpen over the last six months, ranging from 3.9 percent to 7.3 percent, according to a white paper from Colliers.
According to Colliers, sales in the childcare space were sporadic, and typically at higher yields than the retail and industrial market. The report noted a sale in September 2010 which transacted at a yield of over 14 percent, the highest since March 2007.
"Since then, yields have sharpened quickly, and this is not surprising given the newly created competition that has occurred amongst organisations keen to expand their portfolio," the report said.
"Yields have ranged from 3.90 percent to 7.30 percent in the last 6 months and while we can see further consolidation occurring, inconsistency is still apparent. The most recent transaction recorded in April 2016 attracted a yield of 3.90% percent Prior to this, the lowest yield achieved occurred in April 2014 at 4.32 percent.
"A heavy concentration of sales occurred on the east coast of Australia, especially in recent years with sales increasing from only 2 auctions in 2008 to 33 in 2015, most of which are tenanted with a 10 year average initial lease term. The first half of 2016 has seen 18 child care centres sold with the bulk of transactions occurring in New South Wales."
<a href="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%201.07.03%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%201.07.03%20PM.png" alt=""> 
The report said most childcare sales now include longer least terms, previously ten years.
"However as sales activity increases within this new investment sector, we’re seeing lease terms of 15 to 20 years emerge, along with a further 15 to 20 years in options which are to be exercised 5 years in advance. Anything under a term of 10 years for a new lease is a rarity and not widely considered by landlords. "
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