Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<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/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<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/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Commercial Rent

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SPONSORED POST 
How do you know if you are paying too much rent?
Every tenant of a commercial property should be confident that they are paying market value rent.
While there is no set formula that can tell you exactly what your rent should be, there are ways to know whether or not the rent you pay is fair.
Every tenant of a commercial property should be confident that they are paying market value rent.
How is rent calculated?
Commercial property rent is usually calculated on a rate per square metre, for example $320 sqm. So the larger the premises, the more you pay. However it is more complicated than that. The rate per square metre depends on a number of factors. These include location, condition and age of the property, surrounding tenants, included services and sometimes even the lease terms.
Figuring out an appropriate rent means weighing up all of these factors as well as the current market conditions.
As a tenant, or potential tenant, the best way to find out whether your rent is fair is by doing your research.
How do I know how much is right?
The easiest and often most informative method is to search online for other properties that are similar in size, location and/or purpose. You will very quickly get a sense of what is on the market and for how much. If you keep checking over time you will also be able to see which properties get rented and which ones don’t. And you will notice if rental prices are going up or down.
Another good idea is to ask other tenants in your area. Knowing what people are actually paying is the best way to decide whether or not the rent you pay is fair.
Real estate agents are another fantastic source of information. It’s their job to know the market. Ask them what they have on their books. This is especially useful if your lease is up for renewal. You might be surprised by what else is available, how much people are paying and what incentives are on offer.
Real estate agents are another fantastic source of information. It’s their job to know the market.
All of this will give you a sense of the market rate. If you think you are being overcharged then look at your lease – when is it up for renewal and what are the terms? Remember you can and should start renegotiating your lease at least six months before it is due to expire.
Knowing what the market rate is and what other properties are available will help you negotiate the best deal with your landlord.
A little bit of research, to help you know how much you should be paying, will help ensure you don’t pay too much.
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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Are you paying too much rent on your commercial property? realcommercial.com.au

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GUEST OBSERVER
The NSW case of Spuds Surf Chatswood Pty Ltd v PT Ltd <a name="x__ftnref1" href="https://outlook.office.com/owa/projection.aspx#x__ftn1" title=""></a>has considered whether a tenant can claim damages or rent relief when a shopping centre landlord has interfered with the tenant’s trade from its premises. 
The case considers principles which are relevant to landlords and tenants of shopping centres in both NSW and the ACT.   What happened? 
Spuds Surf Chatswood Pty Ltd (‘Spuds’) leased three shops in a prime area of Westfield Shoppingtown Chatswood, Sydney from PT Ltd (‘the Landlord’). Spuds, who had leased shops 415 and 416 since 1999, took a new lease of shops 415 and 416 as well as shop 417 (‘the Premises’) in July 2002 (‘the Lease’).   At the time of entering into the Lease, Spuds raised concerns about the sightlines to the Premises being obstructed by kiosks and requested a clause protecting its interests be included in the Lease. The Landlord did not agree to this request.   Between November 2002 and February 2005, the Landlord entered into leases of three new kiosks which were positioned in the walkway in front of the Premises. For each of the kiosks, the Landlord approved signage which exceeded the maximum height restrictions imposed by the fitout guidelines for the centre. Spuds conveyed to the Landlord its concerns about the contravention of the guidelines and the affect that would have on the sightlines to the Premises. 
However, the Landlord refused to grant rent relief. In January 2005, the Landlord amended the fitout guidelines for the centre so that, from the date of amendment, the signage for each of the kiosks became compliant with the amended guidelines. Spuds’ sales revenue declined and consequently it took action against the Landlord. The Landlord also took action against Spuds for rent arrears.   Unconscionable conduct 
Under the relevant leasing legislation in NSW and the ACT a party to a lease must not engage in unconscionable conduct.<a name="x__ftnref2" href="https://outlook.office.com/owa/projection.aspx#x__ftn2" title=""></a> In the initial decision between Spuds and the Landlord, <a name="x__ftnref3" href="https://outlook.office.com/owa/projection.aspx#x__ftn3" title=""></a>it was held that the Landlord had engaged in unconscionable conduct by: 
<ul>
<li>approving kiosk signage that exceeded the height restrictions imposed by the fitout guidelines </li>
<li>failing to notify Spuds of approval and installation of the non-compliant signage </li>
<li>using unfair tactics by relying on the greatly liberalised version of the guidelines amended in January 2005 to ensure artificial compliance with the height restrictions and </li>
<li>utilising the Landlord’s superior bargaining position to block any attempt by Spuds to obtain acknowledgement of the Landlord’s error and its true impact on Spuds.  </li>
</ul>
The Landlord’s conduct was described by the court as highly unethical and had a sufficient degree of moral tainting for the court to find that the Landlord had engaged in unconscionable conduct. <a name="x__ftnref4" href="https://outlook.office.com/owa/projection.aspx#x__ftn4" title=""></a>   Was the tenant entitled to damages? 
The question to be decided in the most recent case was whether Spuds was entitled to damages for loss of profits and lost value of business due to the Landlord’s unconscionable conduct.   The court found that Spuds failed to show that the Landlord’s unconscionable conduct had an immediate and continuing impact on the revenue generated at the Premises. The court noted that Spuds’ sales revenue did not begin to decline until a substantial time after the erection of each the kiosks. Further, evidence suggested that other factors may have contributed to a decline in Spuds profits. Accordingly, Spuds was not entitled to damages.   However, the court noted that damages were not the only remedy available to Spuds. It also considered equitable remedies and found that Spuds was entitled to rent relief as the Landlord had been enriched, at the expense of Spuds, by its unconscionable conduct. Although this was a win for Spuds, the rent relief granted by the court was less than the rent arrears.   What are the implications? 
Landlords 
When landlords of shopping centres are erecting kiosks or other similar free standing mall tenancies they should keep in mind that it may be considered unconscionable conduct if they approve signage or other components of the kiosk which are not in compliance with fitout guidelines and which may obstruct the sightlines of other tenants.   Tenants 
Tenants considering whether to pursue a landlord for damages for unconscionable conduct should be aware that, in order to receive an award for damages, a tenant must be able to show the conduct had an immediate and continuing impact on the tenant’s business. A general decrease in profits over time is not enough to establish a claim for damages, especially if there are other factors to consider.   What should landlords do?
It is best practice to ensure that all approvals are given in accordance with fitout guidelines. It is not sufficient for a landlord to subsequently amend its fitout guidelines in an attempt to avoid a complaint by another tenant. However, there may be other options available to a landlord. For example, the court suggested that if the Landlord had granted Spuds rent relief, then the court may not have found that the Landlord engaged in unconscionable conduct. 
Landlords should consider offering new signage or other promotional activities to an existing tenant who may be impacted by a new kiosk, in order to minimise the effect of the new kiosk on that tenant’s business. 
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<div id="x_ftn4">Christine Murray is Partner, Meyer Vandenberg Lawyers and can be contacted <a href="mailto:Christine.Murray@MVLawyers.com.au" target="_blank">here</a>.</div>
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 Jennifer Jaeschke is Senior Lawyer and can be contacted <a href="mailto:Jennifer.Jaeschke@MVLawyers.com.au" target="_blank">here</a>.</div>
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Rent relief and shopping centre landlords: Meyer Vandenberg

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Office property re-emerges as the strongest commercial property sector, according to NAB's quarterly Australian commercial property survey.
The findings show that overall sentiment in Australian commercial property markets has moderated a little, but it remains at elevated levels and continues to vary widely across sectors and states. 
"Sentiment eased in most sectors (particularly CBD hotels), but this was largely offset by a big improvement in office. It is also still deeply negative in WA and SA/NT, while NSW and Victoria remain the most upbeat states."
The quarterly survey also notes that on the development front, more property developers are looking to commence new projects in the short-term (led by residential projects), despite increasingly difficult funding conditions. 
"The NAB Commercial Property Index fell to +10 points in Q3, down slightly from a Survey high +11 in Q2.
“The index was dragged down by weaker sentiment in most sectors, particularly CBD hotels. Office was the exception, and it has re-emerged as the strongest sector overall after lagging all other sectors since mid-2013", said NAB Group Chief Economist Alan Oster.
NAB added that sentiment also continues to vary widely across states.
"It is still deeply negative in WA and SA/NT, neutral in Queensland and positive in NSW and Victoria.
"NSW continues to be the most optimistic state for commercial property looking forward, and WA by far the most pessimistic (particularly in regards to office and retail property)", claims the report.
The commercial property survey suggest that by sector, property professionals operating in office (especially in NSW and Victoria) and industrial markets (led by Queensland and NSW) are the most confident when looking to the year ahead, with CBD hotels lagging. 
Looking further ahead, confidence levels are broadly similar across all market segments in 2 years time, with CBD hotels the big improver.
The survey suggests capital growth the next 1-2 years will be strongest for office property (1.5% &amp; 1.4%), followed by industrial (1.1% &amp; 1.3%) and retail (0.9% &amp; 1.2%). Expectations for capital growth in CBD hotels have however been scaled back (-0.6% &amp; 0.3%). 
Positive rental returns are also forecast in all sectors in next 1-2 years, led by big upward revision in expectations for office rents (especially in Victoria).
“This is the first time the outlook for rents has been positive across all sectors since late-2010” he said.
The survey also points to an improvement in developer confidence this quarter, with the number of developers planning to commence new works in the next 6 months rising to 60%, up from 48% in Q2. 
“Hopefully, this will translate into stronger building construction, particularly as property developers have also noted a further deterioration in their debt and equity funding situations”, he said.
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NAB survey suggests office property as the strongest sector

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Throughout 2015 there has been a substantial increase in transaction activity, says valuation firm Herron Todd White's recent month in review.
The report suggests however that this is by far more heavily weighted to prime assets and larger assets offering a strong WALE of five plus years.
"Buyer and market activity for investment properties with solid WALEs in the greater Brisbane area is very strong at present due to the low interest rate environment.
"This has resulted in firming yields for these prime assets over the past 18 months, evidenced in the above table."
However, the report does go on to add that there is increasing disparity between prime and secondary stock with strong yields for primary stock ranging between 7% and 8.5% and relatively soft yields for secondary stock ranging between 8.5% and 10%.
"The spike in demand for these more modern assets is driven largely by the limited supply being constructed which is a by-product of the hesitation to proceed without some certainty of future cash flow and hence the need for a pre-commitment.
"There has been an increase in leasing activity for prime industrial investment properties in the greater Brisbane area which is a positive sign in a somewhat volatile broader industrial market."
The report concludes by suggesting that the secondary stock is not as attractive with rents falling and vacancy rates increasing.
"Rents for prime industrial assets are ranging between $100 and $140 per square metre per annum net with secondary assets ranging between $60 and $95 per square metre per annum."
 
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