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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

WM Residences fills gap in Mordialloc townhouse market

Commercial Sales

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The city of Wagga Wagga in NSW was at the bottom of the retail market cycle in valuation firm Herron Todd White's May retail clock, a simple broad brush means of suggesting where property prices are, and which direction they're headed to.
Wagga Wagga is experiencing an oversupply of retail properties on the yardstick of rental vacancies, and rental rates are also showing a declining trend, the report shows. A flat local economy also doesn't seem to help the situation, as evident from HTW's retail market indicators.
There is also a significant value difference between quality properties that have national tenants, and comparable properties with local tenants, according to HTW. 
<a href="/images/2016/05/06/Screen%20Shot%202016-05-06%20at%202.50.14%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/06/Screen%20Shot%202016-05-06%20at%202.50.14%20PM.png" alt="">
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NSW's Wagga Wagga hit by oversupply of retail space, at bottom of market: HTW 

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A strata titled shop on the Windsor end of Melbourne's popular retail strip Chapel Street has sold to a Melbourne-based investor for $1.315 million, or $18,264 a square metre, in a private sale.
The 43 Chapel Street property attracted enquiries from local and off-shore investors including SMSFs, according to marketing agents, Teska Carson’s George Takis and Larry Takis.
The property comprises the ground floor retail component of a two-level Victorian-style building on a 72-square metre site.
The property was offered subject to a three-year lease with a three-year option to Cheung Shing Pty Ltd, trading as Fish on Chapel, on an annual rental of $61,807 with 5 percent annual increases.
"This location at the Windsor end is exposed to tens of thousands of passing cars per day along with an enormous amount of pedestrian traffic and this has attracted numerous well-known restaurateurs, including Hawker Hall, Saigon Sally, Massina, Tokyo Tina and Mr Miyagi, to what is now a widely recognised destination for connoisseurs of fine food," said George Takis.
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j.ballantyne1990-6AQqhLzZaK

Retail shop in Melbourne's Chapel St. fetches $1.31 million

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With interest rates at record lows, more self-managed funds are snapping up commercial assets between $2 million and $5 million in Western Sydney, although owner-occupiers remain the dominant force.
The strength of the commercial market in Sydney was illustrated through a recent deal by Raine &amp; Horne Commercial, which sold a building at <a href="https://www.realcommercial.com.au/property-industrial+warehouse-nsw-lidcombe-501743026" target="_blank">211 John Street, Lidcombe</a> for $4.3 million to a Honda Motor dealer. The dealership is using the freestanding 2,000 square metre industrial building, which includes a warehouse/showroom factory, as a future service centre.
The dealership beat a number of investors and developers for the property. The building has direct access to Parramatta Road and is close to Lidcombe Railway Station and the M4 Motorway.
Raine &amp; Horne Commercial director, Industrial Services, Duarte Figueira said lower interest rates were driving up owner-occupier activity.
“Many small to medium businesses are weighing up paying a mortgage against a lease. With rates at historic lows, repaying a commercial loan and ultimately owning an asset is making plenty of sense at present,” said Figueira.
“This is a sought-after precinct and Larke Hoskins Honda will join Bunnings, Reading Cinemas, Anaconda, Costco, Woolworths, ALDI and many other retailers who have decided to set up shop here.
“We’re seeing a stream of businesses operating in flat pack furniture and flat pack bathrooms looking to secure properties in our region. They are usually businesses with 30 staff or less – although we are seeing some bigger businesses buying commercial space too.”
Apart from low interest rates, western Sydney’s improved infrastructure is attracting businesses out of CBDs such as Sydney, Parramatta, and even North Sydney according to Duarte.
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Business owners driving Western Sydney commercial sales market: Raine & Horne

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The quarterly update of Pyrmont-Ultimo Cityscope shows a large decrease in sales value even though sales activity has increased.
The most recent quarter had a total of 41 sales at a value of $29.6 million, compared to 37 sales at a total value of $201.5 million for the quarter ending January 2016. The 12 month total sales figure stands at $540.3 million for the year ending April 2016, with 165 sales recorded over that period.
This is in comparison to the previous 12 months when the year ending April 2015 had 162 sales totalling $681.8 million.
Notable sales in the areas covered by Pyrmont-Ultimo Cityscope for the April 2016 update include:
<ul>
<li>Suite 127, 26-32 Pirrama Road, Pyrmont, a 601 sqm office suite comprising a 332 sqm office suite plus a 106 sqm courtyard on level 1 and a 269 sqm office suite on level 2, which was bought for $3.4 million through Hartigan Bolt and Fringe Commercial and</li>
<li>82 Harris Street, Pyrmont, a two storey sandstone building, built circa 1870, which was originally a bakery with a residence above and which was bought for $3 million through Richardson &amp; Wrench Pyrmont/Glebe.</li>
</ul>
<a href="/images/2016/04/29/Screen%20Shot%202016-04-30%20at%201.04.23%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/29/Screen%20Shot%202016-04-30%20at%201.04.23%20AM.png" alt="">
Properties for sale in the latest update of Pyrmont-Ultimo Cityscope include:
<ul>
<li>The Terminus Hotel, 61 Harris Street, Pyrmont, a two storey brick heritage building with a rendered parapet, built in 1915 and on a site area of 489 sqm, available through JLL and Ray White Hotels and</li>
<li>315-317 Glebe Point Road, Glebe, a two storey brick building with three ground floor shops and residential on the upper floor, available through CMS Real Estate.</li>
</ul>
Leasing opportunities listed in the April 2016 update of Pyrmont-Ultimo Cityscope include:
<ul>
<li>The Cooperage, 56 Bowman Street, Pyrmont, a five level brick warehouse building originally constructed in 1901 and later converted for use as offices, which has 200 sqm to 2,500 sqm for lease through Deans Property and Ray White Commercial Inner West and</li>
<li>City West Office Park, 35 Saunders Street, Pyrmont, three office buildings grouped around a central landscaped courtyard which has 1,330 sqm for lease through CBRE and Knight Frank Sydney.</li>
</ul>
 
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Pyrmont-Ultimo commercial sales fell in value in quarter to April: Cityscope

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Preliminary results show a 52.9 percent clearance rate across 17 commercial auctions over the week ending 22 April 2016, a fall in both auction volumes (38) and the clearance rate (71.1 percent) when compared to the previous week, according to latest CoreLogic RP Data.
At the same time last year, 49 commercial auctions were reported and the clearance rate was significantly higher, at 81.6 per cent. Across the commercial auction market, activity has been somewhat subdued over the past four weeks, with just 103 auctions held and 65 sales. Of the 65 sales, 48 have been reported with a sale price, totalling just more than $88.9 million.
<a href="/images/2016/04/29/Screen%20Shot%202016-04-30%20at%201.26.06%20AM.png" target="_blank">Click to enlarge</a>
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Commercial auctions fell in week ending April 22: CoreLogic RP Data

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The latest research from Docklands Cityscope shows that commercial property sales for the quarter have significantly declined.
In the three months to April 2016 there were 11 sales at a total value of just $4.2 million, compared to 16 sales at a total value of $120.2 million for the quarter to January 2016, and 11 sales at a total value of $164.2 million for the quarter to October 2015. The yearly figures are also markedly down, with 54 sales at a total value of $300.2 million for the twelve months to April 2016, compared to 64 sales at a total value of $1.494 billion over the previous year.
Notable sales, such as they are, in the April 2016 update of Docklands Cityscope include:
<ul>
<li>Lot 222 at 838 Collins Street, Docklands, a commercial unit on the level four mezzanine, which sold for $820,000;</li>
<li>Lot 15 at 838 Collins Street, Docklands, a retail unit on the ground floor, which sold for $650,000; and</li>
<li>Unit 216 at 757 Bourke Street, Docklands, a commercial unit on the second floor, which sold for $395,000.</li>
</ul>
<a href="/images/2016/04/29/Screen%20Shot%202016-04-30%20at%2012.49.39%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/29/Screen%20Shot%202016-04-30%20at%2012.49.39%20AM.png" alt=""> 
Properties listed as for sale in the April 2016 update of Docklands Cityscope include:
<ul>
<li>Unit 13 at 42 Newquay Promenade, Docklands, a retail lot of 323 sqm, at an asking price of $1,850,000;</li>
<li>Unit 101W at 425-441 Docklands Drive, Docklands, a 200-sqm shop, available through CVA Property Consultants and No Agent Property Moorabbin; and</li>
<li>Unit 4 at 54 Newquay Promenade, Docklands, a 236-sqm shop, available through MP Burke Commercial.</li>
</ul>
Leasing opportunities in the April 2016 update of Docklands Cityscope include:
<ul>
<li>Aurecon Centre, an eight-storey office building with retail space and parking on the ground floor at 850 Collins Street, which has up to 6,464 sqm of office space for lease through Colliers International and CBRE;</li>
<li>Ericsson Commercial Tower, a ten-storey office building with retail space on the ground floor and three levels of parking at 818 Bourke Street, Docklands, which has up to 3,600 sqm of office space for lease through JLL; and</li>
<li>The Gauge, an eight-storey office building with retail space and parking on the ground floor at 825 Bourke Street, Docklands, which has office space of up to 1,508 sqm for lease through CBRE.</li>
</ul>
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Docklands commercial property sales fall sharply in quarter to April: Cityscope

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The heritage-listed Terminus Hotel on the corner of Harris and John Streets, Pyrmont, has been sold by Auswin TWT for around $5 million.
The purchaser identity remains confidential. Justin Hemmes inspected but it seems decided, notwithstanding its exterior, it would not to be an addition to his ‘Ivy’ stable.
Zoned B4 Mixed Use, the hotel provides an opportunity for multiple bars, dining and accommodation options.
It was sold by Andrew Jolliffe of Ray White Hotels Australia and Steven Tsang and James Aroney of JLL Sales and Investments NSW.
Mr Jolliffe said the successful purchaser identified with the significant character of the property, and is understood to be considering a number of uses, including the reactivation of the licensed premises.
Mr Tsang said more than 60 private inspections were conducted with hoteliers, developers, owner-occupiers and community groups.
It was long owned the Wakil family.
Auswin TWT will still retain the 2,300 square metre carpark on the south-western side of the hotel where it plans to develop luxury terraces. Auswin TWT is also awaiting approval of a DA for a prestigious mixed-use development at nearby 495 Harris Street Ultimo which will contain 210 apartments and ground floor retail/commercial space. 
The <a href="https://www.propertyobserver.com.au/https://digitalcollections.anu.edu.au/handle/1885/9134" target="_blank">Terminus Hotel </a>is two storeys and sits on a 493 square metre site with a gross floor area of 543 square metres. 
Built in the early 1900’s Federation Style, the hotel was originally called <a href="https://www.lostcollective.com/gallery/1603-terminus-hotel/" target="_blank">The Cooper’s Arms Inn</a> but took its current name in 1911 in reference to the tram service which terminated on Jones Street.
The hotel retains many original features including the red brick façade and the distinct parapet skyline detailing. Despite remaining uninhabited for the past three decades, the interiors maintain the charm of a bygone era with their metal ceilings and ornate floor and wall tiling.
 
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Pyrmont's heritage-listed Terminus Hotel sold

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Two recent retail properties went under the hammer recently with strong results, with both selling above the reserve price to local investors.
A property at <a href="https://www.gunningre.com.au/retail/NSW/St-George/Kingsgrove/Retail/1P3963" target="_blank">264 Kingsgrove Road, Kingsgrove</a>, (above) which is leased by House Essentials, sold for $3,541,000, while <a href="https://www.gunningre.com.au/1P3962" target="_blank">437-441 King Georges Road, Beverly Hills</a> leased by Eat GRK sold for $3,705,000. 
Gunning Real Estate principal Malcolm Gunning, who was the selling agent, said there were nearly 200 enquiries with 90 contracts issued.
“The properties were both in a well established residential prescient and priced between $2 million and $3 million," he said.
“We are seeing an increase in interest from the more traditional suburban commercial investors, because the banks have loosened up the lending on retail, industrial and commercial property and the very low interest for cash terms deposits.
“A 3-4 percent net yield is much better than the 2 percent you will get from the bank. A retail investment of $2 million to $3 million for a property within 20 km of Sydney is not a lot of money for these types of investors who are looking for a standalone property."  
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Spectacular results for Gunning auctions

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High yields and exchange rates lured record overseas investors to to the commercial property market in calendar 2015 according to the Asia Pacific Investment Quarterly Q4, 2015 from Savills. 
The report found approximately A$30 billion of national commercial property sales throughout the year with around A$17.2 billion worth of office transactions for the year to December 2015, up 3 percent from the previous year.
Savills recorded approximately A$4.8 billion worth of industrial transactions in the 12 months to December 2015, down from A$5.55 billion 
Foreign investors purchased 36 percent of all industrial property sales and 26 percent of all commercial retail stock sold.  
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Commercial property sales total $30 billion in 2015: Savills

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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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