Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Joel Robinson

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

Seasoned Victorian apartment developer <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a> has logged more than $400 million in sales in its luxury apartment project Palmera Residences at Northcliffe on the Gold Coast.&nbsp;

Central Equity Director Karl Kutner said the sales result reflected a combination of location, product quality and delivery certainty with the project already under construction by building powerhouse Multiplex.&nbsp;

"Surpassing $400 million in sales since launch is a significant milestone and an outstanding endorsement of <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera Residences</a>,” he said.&nbsp;

"We believe one of the key reasons for this strong result is the confidence purchasers have in knowing the project is under construction with Multiplex. Buyers are increasingly looking for certainty. They want to know that the project they commit to today will be delivered by an experienced team with a proven track record."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365782]

Kutner said it was clear there was still high demand for luxury projects that offered certainty of delivery.&nbsp;

“We are in a market where many residential developments have faced delays due to rising construction costs, labour shortages and financing challenges,” said Kutner.&nbsp;

"But having construction underway has provided our buyers with resounding confidence backed by more than 40 years of development delivery by Central Equity combined with construction by one of Australia's most respected construction companies."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365785]

Central Equity is one of Australia's most experienced privately-owned property developers. Over more than four decades, the company has delivered in excess of 85 residential developments including 10,000 apartments and many thousands of stand alone homes.&nbsp;

Located on Garfield Terrace at Northcliffe, between Surfers Paradise and Broadbeach, Palmera Residences occupies one of the Gold Coast's most sought after beachside locations. The development has been designed to appeal to owner occupiers seeking premium residences that combine generous living spaces and resort style amenities.&nbsp;

Palmera Residences will feature an exceptional collection of resort style amenities, including two swimming pools: a generously sized family pool with safe shallow zones for relaxed recreation, and a 20 metre lap pool positioned to maximise all day sunlight.&nbsp;

Residents will also enjoy exclusive access to wellness and recreational facilities including a magnesium pool, sauna, yoga studio, expansive fitted gymnasium, resident lounge, outdoor BBQ’s&nbsp;and indoor and outdoor dining areas, together with a dedicated concierge and luxurious hotel inspired entrance foyer.&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365767]

A unique feature at Palmera Residences has been designed to enhance the Gold Coast lifestyle which includes both indoor and outdoor gymnasium facilities, together with thoughtfully designed indoor and outdoor dining and entertaining areas. A corner café has also been incorporated to provide residents with a destination for their everyday needs.&nbsp;

Kutner said buyer demand had been broad based with purchasers attracted from interstate as well as throughout South East Queensland.&nbsp;

"We're seeing strong interest from owner occupiers, lifestyle buyers and people relocating to the Gold Coast. Many purchasers have been searching for a premium beachside residence where quality, design and delivery are equally important."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365771]

Kutner said the sales milestone was an important achievement, but the focus remained firmly on delivering an exceptional development.&nbsp;

"While reaching $400 million in sales is an important milestone, our priority remains delivering a project that exceeds purchaser expectations,” he said.&nbsp;

"Palmera Residences has been designed to become one of the Gold Coast's landmark residential addresses, and we look forward to welcoming our purchasers to their new homes."&nbsp;

There are a limited number of residences remaining in selected configurations with pricing from $2,950,000 to $8,950,000. Palmera Residences is also crowned by expansive penthouses with wrap around views.

[smartcode_project_cta:default project_id=108274]

Construction certainty and strong buyer demand drive major sales result for luxury Gold Coast development

Palmera Residences fly out the door as sales pass $400 million

National property developer <a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has appointed BINAH as its construction partner for Quartet, its new Brisbane apartment development in the undersupplied suburb of <a href="https://www.apartments.com.au/developments/milton-qld-4064">Milton</a>.

Located just two kilometres from the Brisbane CBD and moments from key 2032 Olympic precincts, <a href="https://www.apartments.com.au/new-apartments/quartet-milton-33-manning-street-milton-qld-4064">Quartet</a> will deliver 131 one, two, three, and four-bedroom apartments priced from $1 million to $4.2 million, combining elevated design with a wellness-focused lifestyle offering.&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=368000]

Goldfields’ Chief Executive Officer, Lachlan Thompson, said the appointment of <a href="https://www.apartments.com.au/builders/binah-constructions">BINAH</a> marked an important milestone for the project.&nbsp;

“Bringing BINAH on board as our construction partner will allow us to bring our vision for Quartet forward with a team that has a proven track record of delivering high-quality residential projects,” Thompson said.&nbsp;

“We’ve taken a considered approach to progressing the site because we wanted to deliver the whole package. Buyers ultimately back great developers, great projects and great builders, and with Quartet, we’ve made sure all three line up.

“People want certainty, they want to know the project will be built, that the homes will be delivered as promised, and that the developer stands behind the quality of what they create. That’s something Goldfields has built its reputation on over many years.”&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=367993]

BINAH’s Managing Director, Khalil Hafza, said the company was proud to be partnering with Goldfields to deliver Quartet.&nbsp;

“Quartet is an exciting project to bring to life, particularly given the level of detail in the residences and the extensive rooftop amenity planned for the building,” Mr Hafza said.&nbsp;

“Our focus is on delivering a high-quality build that brings that design vision to life and creates homes residents will enjoy for many years.”&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=367999]

The facilities at Quartet have been feared towards the roof, with a&nbsp;25 metre lap pool, spa, sauna and cold plunge, and a communal barbecue area and alfresco.

Town planning was designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and brought to life by Melbourne-based architecture firm Cera Stribley.

<a href="https://www.apartments.com.au/interior-designers/cera-stribley">Cera Stribley</a> Co-Founder and Managing Principal, Dom Cerantonio, said the project responds to both its riverside setting and Brisbane’s evolving urban character.&nbsp;

“Quartet has been designed to sit comfortably within its riverside context, offering a refined take on urban living through well-planned, generously proportioned residences that will stand the test of time,” Mr Cerantonio said.&nbsp;

“An emphasis on natural light, natural textures and carefully selected finishes from timber and marble to premium appliances, creates calm, considered interiors designed for comfort and long-term liveability.”&nbsp;

Construction of Quartet will commence in July 2026, with completion anticipated in Q4 2028.

[smartcode_project_cta:default project_id=108736]

Construction to commence on 131-residence tower designed around wellness-focused living

Goldfields appoints BINAH for Quartet apartments in Milton

The first partnership between national developer <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> and Adelaide-based developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> has made a strong start, with the pair securing $21 million in unconditional sales at <a href="https://www.apartments.com.au/new-apartments/one-four-four-hutt-adelaide-144-hutt-street-adelaide-sa-5000">One Four Four Hutt</a>&nbsp;on the edge of the Adelaide CBD.

Over a third of apartments have been snapped up in the boutique 44-apartment project on the corner of Hutt Stret and Wakefield Road. Local downsizers and owner-occupiers wanting to remain in Adelaide's tightly-held southeast quarter have been the most prominent purchasers.

The DKO-designed, mixed-use development is one of the few new apartment projects in the precinct, an area where new housing supply has remained limited despite continued demand from buyers wanting to stay close to the CBD, Victoria Park and Adelaide's established east-end amenities.

[smartcode_project:default project_id=151233 project_image_fid=375378]

Fortis Head of Development SA Arthur Dendrinos said the early sales reflected both the strength of the local owner-occupier market and confidence in the Hutt Street location.

"The level of early commitment reflects the confidence local buyers have in the Hutt Street precinct," Dendrinos said.

"Many purchasers are long-term east-end residents who love the area and want to stay connected to the neighbourhood. They recognise the value of a well-designed, well-located development.

"Our partnership with Otello has been central to this success, and the number of unconditional sales at this stage only strengthens our confidence in the South Australian market."

[smartcode_project:default project_id=151233 project_image_fid=375379]

Otello Director Daniel Harris said the sales result also highlighted the lack of new apartment opportunities within the Hutt Street precinct.

"One Four Four Hutt has clearly resonated with buyers, with strong early sales reflecting both the appeal of the Hutt Street corridor and the lifestyle on offer," Harris said.

"The activated ground-floor retail has also been a key drawcard, with purchasers responding to the vision of a more vibrant and connected streetscape, not just the residences themselves."

One Four Four Hutt will deliver 44 one, two and three-bedroom apartments, alongside a collection of penthouses, above a ground-floor retail offering designed to further activate the Hutt Street precinct.

Construction is scheduled to commence in the third quarter of this year, with completion anticipated in 2028.

[smartcode_project_cta:default project_id=151233]

Fortis Head of Development SA Arthur Dendrinos said the early sales reflected both the strength of the local owner-occupier market and confidence in the Hutt Street location.

Fortis makes Adelaide debut with Otello as One Four Four Hutt records strong early sales

Commercial Market

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Data centre infrastructure provider Siemon said it is expanding its line of WheelHouse Advanced Data Centre Solutions to include both cold aisle containment (CAC) and hot aisle containment (HAC) options that reduce energy costs and increase efficiency of data centres.
By either containing and isolating the cold air supply (CAC), or by guiding hot exhaust to overhead return air spaces (HAC), Siemon’s Aisle Containment Solutions prevent the mixing of hot and cold air in the data centre. This allows for warmer return air to increase the efficiency of cooling systems and cut energy costs.
Alternatively, these also expand the capacity of the data centre to cool higher heat densities, maximizing both cabinet and data centre floor space.
Hotter return air allows for heat exchange within cooling systems, improving power usage and reducing energy costs through lower fan speeds, higher chilled water temperatures and greater economizer hours while cooling data centre equipment to increase performance and life expectancy, said Stuart Gray, product manager at Siemon. 
"For both new and retrofit situations, aisle containment systems are an economical way to prevent costly oversupply of cold air while enabling growth in data centre environments,” Gray said.
The products consist of CAC roof panels, HAC standing cabinet panels, single and double manual and self-closing doors, and end panels that can attach easily to data centre cabinets.
Headquartered in Connecticut, USA, Siemon specialises in copper and optical fibre cabling systems, cabinets, racks, cable management, data centre power and cooling systems.
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jonathanchancellor-7SQnKwU6yx

Siemon offers new aisle containment solutions to improve data centre efficiency

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Melbourne's inner-eastern fringe suburb of Cremorne is seeing brisk tenant activity, with six new leases in the last eight weeks and more in the pipeline, according to real estate agency Teska Carson.
The tiny suburb is suddenly the flavour of the month, said Teska Carson's Fergus Evans.
"Cremorne has for a long time lived in the shadow of its more famous and more popular neighbour Richmond, but the number of businesses who are now making Cremorne home are challenging that dominance," said Evans.
"We have leased six properties recently and have several more tenants looking at what’s available." 
Evans and his colleagues have sold, leased and marketed more than 25 properties in the suburb over the last 18 months, 
New deals include those at:
<ul>
<li>36 Stephenson Street, Cremorne – three year lease to  Scene Change Pty Ltd; </li>
<li>40 Stephenson Street – four year lease to Merlin Migration Pty Ltd;</li>
<li>25 Gwynne Street – two year lease to Care Monkey Pty Ltd;</li>
<li>29 Gwynne Street – three year lease to Suppertime Australia;</li>
<li>14 Gwynne Street -   lease (term undisclosed) to  The Big Group;</li>
<li>44 Gwynne Street -   leased prior to construction (conjunctional with JLL)</li>
</ul>
Some tenants were now looking to avoid the queue by securing space prior to or during construction, including a new lease at 44 Gwynne Street and significant interest at a six-level office building under construction at 13 Cremorne Street, Evans said.
 
The former industrial suburb, famous for its Rosella factory which was established on Balmain Street in 1905, is bordered by Punt Road, Church Street, Swan Street and the Yarra River, and at 0.7 square kilometres, is one of the smallest suburbs on Melbourne’s fringes, but it is now punching above its weight.
"Cremorne is such a great location and that has been the key to this trend we are seeing now. It has access to everything that neighbour Richmond offers, including trains and trams, shops, restaurants, cafes and fashion on Bridge Road, Swan and Chapel streets," he said.
Cremorne was identified in the Victoria government’s Plan Melbourne document as one of a number of new urban renewal precincts to help accommodate a surging Melbourne population which is forecast to exceed Sydney’s population by 2050.
According to the City of Yarra and ABS data, Richmond’s population has grown from 22,789 in 1991 to 31,262 in 2014, a rise of 37 percent, and is expected to rise another 38 percent to 43,105 by 2036. The lion’s share of that growth is expected to occur in Cremorne and Burnley. 
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prateek24-ezbwHMbNAk

Melbourne's Cremorne the new black as tenants move in  

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A site with development potential on the Nepean Highway in Melbourne’s Frankston is up for auction on July 15 and is expected to fetch around $1.3 million.
The 345 Nepean Highway property comprises a 1,303 square metre block of land zoned Commercial 1, with a single-level 225 sqm commercial building and on-site parking.
The property will be sold subject to a short-term lease to Lifeworks Relationship Counselling &amp; Education at an annual rental of $67,090 net.
It is suitable for various uses subject to council approval, according to a media release.
The property is being marketed by Teska Carson’s Matthew Feld, who expects the Nepean Highway to be key to the property’s value.
 
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Nepean Highway site in Melbourne to go under hammer

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Demand for quality Docklands Office stock has remained solid with a number of recent leasing deals at Waterfront City, 425 Docklands Drive.
During an eight-month period from September 2015 through to March 2016, 12 out of 14 leases in 425 Docklands Drive were negotiated by JLL’s Office leasing executive, Alexandra Harper on 1-5 year lease terms.
“Docklands has become an attractive value proposition for tenants that may have been displaced or priced out of the Melbourne CBD or fringe office markets."
The view was shared by local Melbourne investor JAK Investment Group who contracted to buy the 14 office suites in late 2015.  The fully leased Waterfront City building was developed by ING in 2005 and offers modern facilities, balconies and access to the Harbour Town Shopping precinct.
Recent deals in the building include:
<img src="/images/2016/06/22/Screen%20Shot%202016-06-23%20at%207.09.21%20PM.png" alt="">
The Docklands has become a sought-after business address, traditionally attracting large corporates to set up their national and regional headquarters, added Harper.  
 
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Leasing gains momentum in Victoria’s popular Docklands precinct

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Commercial property sales in Perth remained stable in the past three months, according to the latest Cityscope from CoreLogic RP Data.
The last three months to the beginning of June 2016 recorded 19 sales for a total of more than $240.4 million; with $228.5 million for commercial, $5.5 million for commercial strata, $1.5 million for retail strata and $5 million for other. In comparison, the three months to the beginning of March 2016 recorded 22 sales for a total of more than $653.5 million; with $600.2 million for commercial, $5.9 million for commercial strata, $19.5 million for retail, $900,000 for retail strata and $27 million for other.
The 12 months leading up to the beginning of June 2016 recorded 80 sales for a total of over $1.83 billion, up by more than $1.4 billion than the recorded figure for the same time period the year before.
The table below shows sales recorded for the past eight updates of Perth Cityscope:
<a href="/images/2016/06/17/Screen%20Shot%202016-06-17%20at%2012.03.45%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/17/Screen%20Shot%202016-06-17%20at%2012.03.45%20PM.png" alt="">
The top three most significant sales recorded this quarter together totalled over $206.1 million.
<ul>
<li>The Exchange Tower, 2 The Esplanade, Perth. Built in 1992 at a cost of about $270m; 34-storeys, comprised of 33 levels of office space, ground floor retail space and 5 levels of parking. Private Property Syndicate sold its 50% interest for around $113.5 million to Primewest Funds Ltd. Josh Cullen of CBRE, together with Rob Sewell and Simon Storry of JLL negotiated the sale.</li>
<li>St Georges Centre, 81 St Georges Terrace, Perth. A 15 storey office building developed by AFT in 1987. In March 2016 the property went under contract for around $84 million to ARA Asset Management Limited, on behalf of a real estate fund. John Williams and Nigel Freshwater of JLL negotiated the sale which represented an initial yield of 7.25% on passing income of approximately $6.09 million.</li>
<li>482-484 Murray Street, Perth and a right-of-way. A two storey warehouse known as the Sara &amp; Cook Building, built circa 1930, with a 128 sqm right-of-way leading to Wellington Street. Bought for $8.65 million by Goldvista (Perth) Pty Ltd.</li>
</ul>
<a href="/images/2016/06/17/Screen%20Shot%202016-06-17%20at%2012.06.10%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/17/Screen%20Shot%202016-06-17%20at%2012.06.10%20PM.png" alt="">
Properties listed for sale include:
<ul>
<li>32 Ord Street and 34 Ord Street – a single level house and a two-level office building. For sale with vacant possession and an asking price of $5,100,000; agent, Burgess Rawson (Rob Selid and Brian Neo).</li>
<li>1/33 Barrack Street, Perth – a 45 sqm retail unit on the ground floor plus 10 sqm in the basement. For sale by offers to purchase; agent, CNI Commercial Property Group (Colin Pang and David Walser).</li>
<li> Lot 38/171 St Georges Terrace, Perth – a 189 sqm unit with 76 sqm of retail space on the ground floor retail space and 113 sqm of office space on the upper level, plus a 5 sqm balcony. For sale with an asking price of $1.269 million; agent, Ray White Commercial WA (Stephen Harrison).</li>
</ul>
Cityscope covers 28 predominantly capital city CBD markets across Australia and New Zealand, providing a rich level of property level data including building attributes, tenancy detail, sales and ownership.
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Perth commercial market sales stable in last 3 months: Cityscope

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Melbourne’s office market is seeing much activity from offshore buyers, according to recent sale deals by Colliers International.
To illustrate the point, a 450 sqm freestanding office and retail building at 318 King Street was bought by a private investor from China for circa $5 million within two weeks of its listing. 
The deal was brokered by Colliers International’s team of Oliver Hay, Daniel Wolman and David Sia. 
The property is a two-level building on a 231 sqm site with King Street frontage and rear access via Eagle Alley. 
Hay said the buyer intends to lease out the property in the short term before occupying it. The same buyer earlier bought a development site in the nearby area.
Another recent sale was that of Level 2, 21 Victoria Street for $1.395 million to an offshore developer looking to establish themselves in the Melbourne CBD.
“A big theme in this sector of the market at the moment is that these purchasers are not just buying development sites, they’re buying offices as well, as they are keen to set up a physical presence,” said Hay.
“Of five strata office floors sold by our team in the last two weeks in the Melbourne CBD, half have been sold to offshore groups looking to establish a physical presence for themselves in Melbourne.
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Offshore buyers setting up presence in Melbourne's office market

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GUEST OBSERVER
A new report by JLL says it is time to review pre - Global Financial Crisis yardsticks to judge future investment performance for commercial real estate.  Instead, investors need to look more broadly at the long-term structural changes to the market that have been underway, behind the scenes.
And don’t wait for ‘normal’ market conditions to return, as traditional real estate benchmarks may not be reliable indicators in the future.  Some metrics, such as workspace ratios and retail turnover ratios, may no longer even be relevant in the shifting world of workplace mobility and IT connectivity.
The Report - ‘Real Estate Conundrums - Just another cycle – or a whole new ball game?’ was presented at a JLL Research event in Sydney.
Technology and urbanisation have been gathering pace for decades.  But while the cyclical nature of real estate has not been abolished, investors in real estate face a range of conundrums relating to yields, cross border investment, technology and urbanisation that can have long-term impacts for commercial real estate.
<a href="/images/2016/06/16/Screen%20Shot%202016-06-16%20at%208.26.15%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/16/Screen%20Shot%202016-06-16%20at%208.26.15%20AM.png" alt="">
The GFC has been a convenient scapegoat for the breakdown in previously trusted rules of thumb when investing in commercial real estate.  While for some the benchmarks of the years 2007-2008 do seem to mark a clear break from the patterns of the past, many trends have been evident for far longer than that.  Not everything is a GFC-driven event. For instance, real and nominal interest rates have been declining for 30 years.
The challenge for investors right now is that numerous structural and cyclical shifts are emerging, converging and interacting with each other.
Structural shifts for Australian commercial real estate:
<ul>
<li>Real estate markets are globalising – tenants, investors, developers</li>
<li>
Yields: Low growth, low inflation, low yields are also here to stay</li>
<li>
Cross Border Investment: Offshore capital is here to stay</li>
<li>Fundamental mismatch between capital and available assets</li>
</ul>
Market cycles have not been abolished:
<ul>
<li>Yields will cycle around lower benchmark levels</li>
<li>
Demography a key driver of all real estate asset classes</li>
<li>Financial markets move faster than physical markets</li>
<li>Don’t wait for ‘normal’ conditions to return</li>
</ul>
Structural Shifts – Yields and Cross Border Investment:
Implicit in JLL Research forecasts is a downward structural shift in interest rates and real estate yields – in other words, the ‘lower for longer’ theory is correct.  This does not mean that cycles have been abolished.  But average yields are likely to be lower than in the past.
<a href="/images/2016/06/16/Screen%20Shot%202016-06-16%20at%208.28.57%20AM.png" target="_blank">Click to enlarge</a>
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Supported by growth in global pools of capital and a search for yield, JLL calculates that global cross border investment will continue to grow over the medium term.  In Australia, cross border investors accounted for 42 percent of all commercial property transactions in 2015.
While the impact of technology has been massive, the impact on real estate has been less than was anticipated 20 years ago; CBD’s remain magnets for office and retail tenants, despite rising travel and congestion costs, and inner-city residential demand (which was not foreseen) has increased substantially.
Perhaps though the falling cost of technology, the advent of wireless capabilities, combined with the rising cost and scarcity of skilled labour and rising wages (that puts a premium on commuting travel times) will now lead to a more substantial impact on real estate investment returns and a re-ranking of market values in CBD and non-CBD locations? 
If location premiums erode, non-CBD and suburban locations could be rewarding for investors.
Demography (and urbanization): – is it destiny?
Are we under-estimating the impact of the changing population age profile?  Baby-boomers and first home buyers are important – but over time there are many other impacts on real estate to consider – childcare, student housing, retirement living as well as the age profile within the working age population. 
While population will grow across all age categories in Australia, some age groups will grow much faster than others – therefore requiring specific real estate solutions – right across the spectrum from childcare, student accommodation, first home buyers, upgraders, empty nesters and retirement villages.
 
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David Rees is regional director, head of research, JLL Australasia and can be contacted <a href="https://www.jll.com.au/australia/en-au/people/113/david-rees" target="_blank">here.</a>
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Time to review pre-GFC yardsticks to judge future performance of commercial real estate: JLL's David Rees

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Record low interest rates and rising demand from investors could further compress yields in Brisbane’s industrial market, according to an analysis by commercial real estate firm CBRE.
The firm’s 2016 Q1 Industrial MarketView highlights improving conditions in Brisbane’s industrial market, with the decline in business investment tapering off and production levels forecast at 5.7 percent in 2016. 
Brisbane’s industrial sector continued to witness strong levels of transaction activity,  said Ed Bull, CBRE’s senior director, Queensland Industrial &amp; Logistics.
“The sheer weight of capital looking to enter the market, coupled with the favourable interest rate environment, will fuel demand for core assets backed by secure, national covenants,” Bull said. 
“In light of this, we’re likely to see some yield compression for the right type of assets.” 
Residential construction remains a strong driver of Brisbane’s industrial market, with dwelling approvals over the past 12 months growing by 15.6 percent, while container trade out of the Port of Brisbane also increasing 3.5 percent in 2015. 
In the first three months of 2016, yields for super prime industrial assets in Brisbane remained around 6.50 percent, while prime yields still sit at 7.43 percent and secondary yields at 8.73 percent, said the report.
The rental rates for Brisbane industrial property remained steady over the quarter, with super prime at $116 per square metre, prime at $114 per square metre and secondary at $93 per square metre.
CBRE senior research manager Kate Bailey said the supply pipeline would support continued value growth in the market. 
“Following two years of significant new industrial supply, the pipeline for 2016 is considerably lower – reducing the risk of oversupply and supporting rental growth in the medium term,” Bailey said.
In Melbourne and Brisbane, a respective decrease in supply of 55 percent and 11 percent is forecast, while in the undersupplied Sydney market, 765,000 sqm is due for completion in 2016.
“This reduction in total supply entering the market is expected to encourage rent growth as demand begins to be supported by an improved industrial economy,” Bailey added. 
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Low interest rates, investor demand compressing yields in Brisbane's industrial market: CBRE 

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An owner-occupier in the automotive industry has purchased a Bayswater industrial facility for $710,000 from a Melbourne-based developer as record low interest rates drive new investment from tenants.
The 1/6 Sydney Road property comprises a 413 square metre industrial unit with front and rear roller door access, eight car spaces and frontage to Mountain Highway.
According to Savills Australia associate director, Daniel Kelly, who brokered the deal, the new tenant had been leasing another premises in the area but wanted to exit the leasing market. 
"There’s no doubt that for some tenants the buying versus leasing argument has swung in favour of buying, particularly with interest rates at a record low and likely to remain low,’’ Kelly said. 
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Owner-occupier buys industrial unit in Melbourne's Bayswater for $710,000

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More than 145,000 square metres of speculative industrial development greater than 5000 sqm is underway across Melbourne’s industrial markets, according to Savills.
Savills’ Victorian research manager, Monica Mondkar, said another 400,000 plus square metres is in the planning stages and likely to be driven by pre-commitment activity. 
"An additional of 93,715 square metres of warehousing space was currently in early planning stages in the north, and another 318,973 square metres - all at Melbourne Airport Business Park precinct - in the north, however the majority was expected to commence construction based on pre-commitment activity," she said.
"The figures include 27,000 square metres of speculative construction scheduled for completion within next 12 months in Melbourne’s western region, 58,485 square metres in the northern region and more than 60,000 square metres in the south-east.
"The figures did not include the conceivably greater number of projects under 5000 square metres and are a modest estimate based on planning applications for industrial development including warehouses, distribution centres and cold storage facilities.
 "Some 871,836 square metres of industrial space was reported leased in the 12 months to March in Victoria - up a healthy 36 percent on the five year average figure of 641,328 square metres – with pre-commitments accounting for a significant 309,691 square metres."  
Savills’ Industrial Director, Michael Green said the demand and the relative scarcity of development sites was putting upwards pressure on values for smaller allotments with prices on some estates in the north and south-east at $300 plus a square metre.
"Demand for lots in the northern region had left only eight lots available at McMullin Group’s Northpoint Enterprise Park," he said.
"Genesis Developments had sold out a speculative 11 unit development and was now in the process of building another high-end speculative 20 unit development next door on the back of those sales, while at MAB’s Alliance Business Park nearby, six lots were sold or under offer in the last stage of that development.
"In the south-east a private Melbourne based developer has purchased the last three vacant parcels of industrial land totaling 7000 square metres at Hallam Central Business Park for just over $2 million with plans for speculative development, while in the west 13 development sites totaling 12.8 hectares at Goodman’s Westside Industrial Estate, also earmarked for speculative development, sold for more than $20 million over just four weeks in January and February."
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