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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GUEST OBSERVER
Mixed-use developments are back in favour and a growing trend, with many developers opting to incorporate several property uses into new projects.
Many factors are driving this trend including uncertainty in the residential market, growth in the hotel sector, the continuing scarcity of prime sites and the creation of activated lifestyle precincts.
Today’s mixed-use development model is emerging as a modern fusion of commercial, retail, residential and even hotel uses to maximise planning criteria. 
Rather than relying on one “star performer” property type, such as residential over the last five years, risk is now being reduced with developments incorporating several uses. 
In addition to risk being minimised by using the mixed-use development model, another core benefit for developers is that mixed-use projects are a highly efficient way to unlock the best value out of land and potentially increase return on investment. 
I liken it to a return to the good old-fashioned mixed business retail model we all grew up with. A bit of this and a bit of that for sale, and not all the eggs in “one basket” so to speak. 
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Rather than asset classes having to independently compete against each other in silos to generate the highest return, a mixed-use project enables different property types to work together and collaboratively deliver maximum value. 
Interestingly, hotels are now being proposed on the lower levels of new high rise residential towers where solar and ventilation criteria can't be met for residential uses. It’s an organic move, a bit like complimentary planting to create a sustainable garden, but rather complimentary planning where property uses complement each other to safeguard their individual on-going survival. 
In this case the hotel can be constructed on the lower levels not suited for residential development and create an opportunity for on-going cashflow or immediate sale, yet the upper levels with views can be developed as apartments and derive higher profit margins. 
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The on-going trend toward the creation of lifestyle precincts is also another factor influencing the surge in mixed-use developments. This is particularly evident in CBD and fringe environments with the focus in activating beyond the traditional “9 to 5” hours of an office building. 
Mixed-use developments have the added benefit of creating active and connected communities where people can work, rest, sleep and play. This supports the property sector’s fascination with sustainability and also ensures further opportunities for developers to maximise returns on investment are not missed. 
The benefits of mixed-use developments are far-reaching and transpire beyond developer profits to improve communities and ensure efficient use of our space. We certainly have not seen the end of mixed-use projects and will see more interesting combinations of property uses in new developments over the next few years as developers become more experimental in their planning. 
Drenka Andjelic is managing director of Construction Assignments and can be contacted <a href="https://www.constructionassignments.com" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

The secret is in the mix: Mixed-use developments cut risk, deliver value 

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The worrying health of the global economy, workforce strategies and rising cost and speed of business are having a big impact on real estate decision-making for major corporations, finds a new survey by CBRE Group, Inc of global corporate real estate executives.
“The volatility of today’s global economy is challenging executives to align naturally long-term real estate initiatives with increasingly short-term corporate agendas,” said Karen Ellzey, executive managing director of consulting for CBRE Global Workplace Solutions.
“Today’s real estate strategies have to focus on delivering ‘growth without growth’ — expanding a corporation’s capabilities without spikes in capital investment or operational expense.”
More than 400 corporate real estate executives from around the world participated in the CBRE survey. Nearly half (49 percent) cited economic uncertainty as their greatest challenge, while 43 percent noted cost escalation as their greatest challenge.
Forty-eight percent projected a stable real estate footprint for this year. Seventy-nine percent stated that they are actively using space-efficiency initiatives—“saving in place”— to manage costs, combining ground-up workplace strategies with top-down cost management initiatives.
“Controlling costs and supporting employee needs are the leading goals of workplace strategies globally,” said Julie Whelan, head of Americas occupier research for CBRE.
“There has been a natural shift to create workplaces that are efficient, functional and modern, allowing corporate real estate executives to balance employee desires with cost management disciplines.”
Workplace strategies are also driven by talent-centric initiatives. Fifty-five percent of survey respondents cited better collaboration as the main driver in designing and implementing workplace strategies, while 49 percent cited employee attraction and retention as a key aim.
Work-life balance is also top of mind, with executives reporting workplace flexibility, high indoor environmental quality and easy access to public transportation as features important to employees.
Global corporate executives favoured emerging markets as destinations for growth, with Southeast Asia and India as top locations for expansion. Fifty-six percent of respondents indicate interest in expanding their corporate portfolios in the coming three years in Southeast Asian markets where economic opportunities are emerging.
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prateek24-ezbwHMbNAk

Global economy, workforce and rising costs of business driving corporate real estate decisions: CBRE study 

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The Como Centre in South Yarra has attracted the attention of the boutique funds manager Newmark Capital, which is led by Chris Langford, the former star of AFL club Hawthorn.
The Australian newspaper reports Newmark is looking at the purchase of the Como Centre, listed by Mirvac for close to $230 million.
The group secured the nearby Jam Factory for about $165 million last year from financial services company Challenger.
The Como is a two-hectare site with street frontage to Chapel Street, Toorak Road and River Street.
The property generates more than $14 million of net income from more than 25,000 sqm of office space and 6600 sqm of retail space.
There is a 113-room hotel operated by Accor on a lease expiring in June 2021, with a five-year option.
The centre has a car park for 614 vehicles.
Newmark Capital was founded in 2011.
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Newmark consider adding Como Centre after Jam Factory acquisition

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The veteran Brisbane developer Kevin Seymour will mothball his $200 million Fortitude Valley apartment project until the next property cycle.
Demand in the city is no longer deep enough to warrant the development, Seymour told The Australian.
The Seymour Group would not proceed with the Arena nightclub redevelopment, but will hold the 312-apartment project until the market rebounded.
“I don’t think the demand is there without taking abnormal risk,” Mr Seymour said. “The heat has come out of the market.”
The market was in a “slight downturn” with Mr Seymour saying his approach was to develop in a rising market.
“It’s a fantastic site and we will leave it to the next cycle when we can get a premium for the apartments that we cannot get in the present cycle,” he said.
Brisbane has seen a wave of apartment projects with Seymour Group continuing with its prestige 30-apartment project at inner-city New Farm.
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Kevin Seymour mothballs his Fortitude Valley, Brisbane residential project until next boom

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Confidence in the CBD hotels sector outweighs office and retail for the year ahead by sector, according the NAB Quarterly Australian Commercial Property Survey Q1 2016, which noted the Commercial Property Index fell to +12 points but is above the long term average.
According to the report all markets are tracking above long-term average levels, except CBD Hotels, which it continues to out-perform the broader market. 
NAB chief economist Alan Oster said Property professionals in the CBD hotels sector are also the most confident in the next year, followed by office and retail.
"However, confidence levels are broadly similar across all market sector participants in 2 years’ time," he said.
"By state, sentiment improved in NSW and it continues to lead the country by some margin, led by a strong contribution from the Office sector. Sentiment also improved a little in WA, but remains deeply negative and by far the worst performing state, dragged down by chronically under-performing Office and Industrial property markets. Sentiment was lower in all other states. 
“Property professionals in NSW are the most optimistic in the next 2 years, but those in Victoria are expecting the biggest improvement. WA remains the most pessimistic state, but only just ahead of SA/NT." 
On average, capital values are expected to increase most for CBD hotels in the next 1-2 years (1.4 percent &amp; 3.4 percent). 
"Office rents are expected to grow 1.1 percent and 1.5 percent in the next 1-2 years, led by  NSW and to a lesser extent Victoria. Significantly, for developers intending to start new projects, a survey low 38 percent indicated they were targeting residential developments, down from 54percent in Q4, presumably reflecting the over build in apartment markets,” he said. 
<a href="/images/2016/04/27/Screen%20Shot%202016-04-27%20at%201.26.06%20PM.png" target="_blank" style="line-height: 1.3em;">Click to enlarge</a>
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po-LsXgBTHBmX

CBD hotel confidence leads office, retail: NAB

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GUEST OBSERVER
Commercial property sales hit a near record of approximately $28.4 billion in 2015 with 40 percent coming from offshore investors.
Sydney and Melbourne are among the top 10 destinations for international capital and with [gross or face] yields 3 percent higher than other gateway cities. These trends are so far continuing in 2016.
Given the long term nature of property it is important to look beyond the short term, so at Cromwell, we are focused on understanding how the market will look in five years and what trends will emerge across each of the sectors.
Our analysis shows that office markets are the most popular with international investors but other sectors such as hotels, retail, student accommodation and aged care are also increasingly sought after.
In all market sectors however, prices have generally run ahead of leasing fundamentals. The continued weakness of the economy means relatively subdued tenant demand for property in the short term albeit this demand should gradually improve as the economy begins to benefit from the pick-up in non-mining investment in a few years’ time.
Stronger growth in demand will then, to the extent that it leads to a tightening in leasing markets, underpin rises in rents and a further firming of prices. The timing and extent to which this happens will vary by market and geography.
A 5 year view sector by sector
Retail
Retail will show solid rather than spectacular income growth with differences between outcomes dependent on population, catchment growth and competition within each catchment.
Retailers still face significant challenges from internet shopping, a lower AUD and from aggressive competition. Even so, consumers have maintained expenditure growth and we believe that we are now largely through the weak period when increased vacancies in retail centres led to increased incentives and weak rental growth. 
Those vacancies are now drying up as demand for retail space improves.
Industrial
The industrial sector is basking in the glow of investor appetite after a long stint in the wilderness. Industrial demand is strengthening across the eastern seaboard capitals, underpinned by supply chain outsourcing and e-commerce.
Sydney is leading the pack, with the strongest demand in 15 years. The current growth drivers will remain in place, boosted as non-mining investment recovers but the rents will stay flat even though demand will be improving.
The market is still diminished by an ample supply of sites for development. There is plenty of zoned but not yet serviced land and aggressive development competition will keep a lid on growth in rents and prices.
The main issue is the impact of low interest rates on yields and hence rents. The firming of yields has improved development feasibilities, allowing developers to offer incentives which have spread to the re-leasing of existing properties. As a result, effective rents have fallen. Should interest rates rise, the development proposition would tighten and put upward pressure on effective rents. However that is still a way off.
Hotels
Hotels in capital cities catering to the business market were in extremely tight supply following the collapse in building post-GFC, particularly in cities servicing mining. That has now led to a building boom which when completed over the next few years would, if business was the only demand driver, oversupply those markets, city by city. However that will be offset in some cities by strong growth in tourism, both overseas and domestic. 
Hotels in tourist regions, where there has been very little building, will do extremely well as increased demand leads to tightening occupancy and rising room rates. We expect a boom in refurbishment and building of new hotels in tourist areas over the next 10 years. That will broaden to growth in the associated regional economies. 
Residential 
We are nearing the peak of the residential boom, but with marked differences between cities. Building is at record levels. Investor demand has driven the market, to some extent boosted by Chinese demand for bolthole properties, with owner occupiers relatively slow to follow.
Accordingly, the market has been driven by apartments with strong building in the inner-city.  Prices have risen strongly leading to concerns about affordability. This has turned into a classic cycle. The outcome will ultimately be driven by demand and supply in each market.
Office markets
Office markets fundamentals have come through an extremely difficult period dominated by weak tenant demand across the board as employment growth, and in particular business services employment (the primary driver of office demand), evaporated. 
Australia-wide, demand is now slowly recovering from that period of negative net absorption, albeit still affected in some cities by falling mining investment. There are marked differences between cities.
Regardless of these fundamentals, the Australian office market is experiencing cyclical high demand from investors, with record-low yields being accepted for CBD office assets. This is the preferred property sector for foreign capital, and will likely continue as the yield of Australian commercial assets aligns more closely with the global norm.
Summary
Overall, we believe the Australian economy will stay soft for the next two to three years as it works through the end of the mining investment boom. There will be a slow transition to more balanced growth, driven by industries benefiting from a lower AUD.
With Australian governments focusing on deficits and cost constraint, government investment is still falling overall. NSW is leading the way on using the cyclically strong investor demand to crystallise cash from asset sales to unlock future infrastructure investment. The next round of infrastructure investment will, however, take time to have an impact.
Inflation remains below target and until growth strengthens the RBA has a bias for rate cuts. The US, on the other hand, has begun raising rates and the reduced gap between the two monetary policies will likely see the AUD fall further.
There will be no recession in Australia but there will be a transitionary period. We expect it will be two to three years before non-mining business investment builds sufficient momentum and growth strengthens.
In the mean time, property fundamentals are not supporting the prices being paid for assets, and from our experience, a balancing of these two variables is inevitable.
Damian Horton is head of property, Cromwell Property Group and can be contacted <a href="https://www.cromwell.com.au" target="_blank">here</a>.
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The outlook for Australia’s property market: Damian Horton

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Melbourne’s construction boom is getting another boost with another $42 billion of projects set to commence within just two kilometres of Melbourne’s CBD, fuelling a second wave of local and international investment with investors from Europe, China, Singapore, Malaysia, the UK and the US attracted by the city's population growth and development pipeline, according to Savills.
The construction boom, which has produced a record 160 cranes on the skyline - mostly on new apartment towers to accommodate population growth and overseas students – will now see a whole new round of residential tower construction, new hotel construction on the back of a rise in tourist numbers, and at least $20 billion of major infrastructure projects including Melbourne Metro railway and Flinders Street station, hospital, road and sporting upgrades.
"The stimulus provided by all of this development and new infrastructure is driving a whole new level of investment in Melbourne in all sectors of the commercial property market including office and retail assets, subdivision land, car parks, shopping centres, hotels and development sites, and investor confidence in Melbourne is soaring as a result," said Savills’ state sales director Clinton Baxter. 
"Obviously, we’re experiencing a massive rush of capital into our market from interstate, China, Malaysia and Singapore, but the attraction of Melbourne has now spread globally with assets being sold to international interests from Canada, the Netherlands, UK, USA, India and New Zealand. We’ve also had investors out from Botswana, Indonesia, Germany, Russia, Vietnam, Korea and Japan scouring the Melbourne market for opportunities.
Savills’ analyst Mark Stafford said the apartment construction boom, already five years old, was set to escalate with a huge new round of apartment tower construction led by Australia 108 in Southbank, the 92-level Aurora development opposite Melbourne Central, and a further 20 plus apartment towers in excess of 200 metres in height already in pre-sales or early stages of development.
Hotel construction is also in full swing as local and international hotel operators scramble to take advantage of the record high room occupancy rates throughout the city, he said.
Stafford said the 110 projects totalling $42.035 billion and ranging from $25 million to $11 billion included:
<a href="/images/2016/03/30/melbourne1.jpg" target="_blank">Click to enlarge</a>
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Baxter said the most significant drivers for international investors were Melbourne’s rapid population growth, its most liveable city status, and its nation-leading overseas student/education sector, while the combination of stable government and a relatively safe social environment were additional factors which added up to a very sound investment CV. 
The low Australian dollar was the icing on the cake, making the investment rationale extremely compelling, said Baxter.
He said after a slow start in the role, Victorian Planning Minister, Richard Wynne had also played a major role in rapidly restoring confidence in the development sector with a spate of major new apartment tower approvals throughout the CBD, Docklands, Fisherman’s Bend and Southbank amounting to several billion dollars of future development. 
"Inner Melbourne is maturing rapidly, Docklands is filling fast, our population is set to double to eight million by 2050, student and tourist numbers are rapidly trending upwards, tens of thousands of construction jobs are being created, which in turn fuels housing and retail spending, and all levels of government are actively promoting development in the inner urban area.
"We limited our assessment to larger projects within just two kilometres of Melbourne’s CBD. When you take into account all the projects throughout the whole metropolitan area, plus additional major infrastructure investment such as the Melbourne Airport and Port of Melbourne expansions, the weight of investment into Melbourne’s growth is absolutely enormous and extremely exciting for all market participants.
"Melbourne is firmly on the map for global investors, and with so much scheduled growth, we are already experiencing the emergence of a second wave of international investment.’’
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Melbourne gears up for second construction wave: Savills

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Hobart's commercial market is witnessing a number of hotel developments, including a 296-room project by Singapore-based Fragrance Group.
Describing the commercial market in the Tasmanian city as “selectively robust”, Raine &amp; Horne Commercial co-principal Leslie Simpson says there is "strong demand for some categories of commercial property and limited interest for other assets, which is probably similar to other cities around Australia”. 
Self-managed super funds are driving exceptional demand for passive investment stock, adds Simpson.
“These investors are happy to acquire assets that reflect yields below historic benchmarks for the Greater Hobart area,” he said. “Many will accept these returns based on the justification that they are still better than bank account earnings. However, this purchaser type is highly risk averse, with interest quickly diminishing if not supported by a strong lease covenant”.
According to Leslie, the more traditional investors in the Hobart market are still seeking higher, more traditional yields, often leaving a gap between vendor expectations and market interest for secondary investment stock with short term leases.
Retail, industrial and visitor accommodation properties are attracting significantly more interest than other forms of commercial real estate, according to Leslie.
“Tasmania’s impressive recent growth in both domestic and international visitor numbers has seen very strong market interest in visitor accommodation, particularly from Asian interests.
“We currently have three new hotels under construction in the Hobart CBD, and there are another four hotels either proposed or with permits subject to appeal."
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Hobart commercial market is selectively strong: Raine & Horne

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Superannuation-backed developer and fund manager ISPT has secured Michelin star restaurant Tim Ho Wan as a tenant in its retail and office property at 206 Bourke Street in central Melbourne.
ISPT paid $118.3 million for the five-level property, owned by Singapore's Hiap Hoe, in November.
The 330-square-metre restaurant will be the first Tim Ho Wan in Melbourne, complementing two in Sydney. 
Singaporean-owned Tim Ho Wan, which is famous for its pork buns, has been called "the cheapest Michelin star restaurant in the world".
Rents in the Bourke Street centre average $2,000 per square metre. 
Gary Loo, director of leasing at Knight Frank, brokered the deal.
"The were looking for a property close to Chinatown with direct street access and frontage to allow for large signage and a weatherproof space to accommodate the long queues of customers that are a trait of their Singaporean counterparts," he said.
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Michelin star restaurant rents super fund ISPT-owned Bourke Street space in Melbourne 

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A South Yarra address leased to MasterChef Australia patissier Adriano Zumbo’s Fancy Nance and Little Frankie’s eateries has sold for $3.705 million before auction.
The Fridcorp-developed Lilli building at 21 Daly Street, South Yarra is spread across 410 square metres and is located on the ground floor.
Zoned Commercial 1, it was sold with a new 10-year lease with two five-year options to Zumbo’s high tea restaurant Fancy Nance and Little Frankie’s, returning a rental of $197,514 per annum plus outgoings and GST.
The yield works out at 5.3 percent.
Fitzroys' Chris Kombi and Andrew Hewett handled the selling campaign.
“This is an enormously successful location with a huge catchment of over 3,000 residents and workers immediately surrounding the property, with high growth prospects for the future,” said Kombi.
The building had been on the market for 48 days before Zumbo snapped it up.
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