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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Industrial vacancy rates in Brisbane fell by 1.8 percent over the past quarter, the second consecutive fall, the latest research report by Knight Frank shows.
Despite vacancy remaining above average, the total vacancy is beginning to respond to a lull in backfill space and a reduction in new sub-lease space, according to Knight Frank’s head of Industrial, Australia, Greg Russell.
“Take-up of vacant industrial space was strong over the majority of 2015, following a slow start in the first quarter of the year. Enquiry levels have remained patchy, with solid periods of enquiry followed by quieter times in the market,” said Russell. 
“Demand has continued to arise from transport and 3PL users, as well as those companies related to the building industry.”
According to the Brisbane Industrial Vacancy Research report for February, the level of available space within the Brisbane Industrial market decreased by 11,818 square metres over the past quarter to sit at 640,996 square metres as at January. (The report monitors available space 3,000 square metres + only).
“In tandem with the reduction in total vacancy, the time on the market has reduced slightly across the available space to currently average 15.1 months.”
The level of prime space fell by 8.8 percent over the quarter to 313,511 square metres, with absorption of prime space dominating the quarter. 
In contrast, the secondary space available increased by six per cent to total 327,485 square metres over the final quarter of 2015.
All available industrial space is split relatively evenly between prime (49 percent) and secondary (51 percent), says the report.
Warehouse-style buildings made 81 percent of the total available space, said Russell. “In line with the reduced expenditure in the resource sector, manufacturing and metal fabrication demand has remained subdued. This has impacted demand for vacant space. 
“Manufacturing stock has a current time on the market of 20.2 months, in comparison with warehouse stock, which averages 13.5 months.” 
Three precincts recorded significant falls in vacancy in the final quarter of 2015, added Jennelle Wilson, Knight Frank’s senior director, Research, Queensland. 
“TradeCoast was down 18 percent; the Greater North was down 18.9 perCent; while the South West was down 21.5 percent. Knight Frank recorded a total reduction in available space of 62,978 square metres,” said Wilson.
“The other three precincts balanced out these figures, recording increases with the North up 8.9 percent; South up 18 percent and South East up by 12.8 percent – meaning that the overall reduction in vacancy was only modest.
But despite the total vacancy falling over the past two quarters, the level is still at historically high levels and the market continues to favour tenants.
“Market rents are showing a softening trend with discounting of advertised face rents and incentives firmly in the market,” said Wilson. 
“Increasingly, landlords are accepting that rents on new leases will be lower than the passing rent from existing leases which had fixed reviews.”
“This has extended to making strong offers to sitting tenants, who had been considering relocation, in order to maintain an income stream over the asset and avoid vacancy.”
The forecast new supply for 2016 appears to be in line with that of 2015, with a number of the ‘proposed’ projects to potentially be deferred into 2017, she added.
“Investment market conditions have remained solid for prime assets, with yields sub-seven per cent for modern, long weighted average lease expiry opportunities. Although, yields for assets with exposure to vacancy have appeared to plateau. 
“These high prices achievable for new, long-leased assets has continued to spur both speculative development and low pre-commitmente rents, which will create further backfill space – although not at the pace that was seen in early 2015. 
“While the vacancy appears to be trending down and take-up has remained strong, the market rents remain soft,” concluded Wilson.
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prateek24-ezbwHMbNAk

Industrial vacancy trends down in Brisbane for second consecutive quarter: Knight Frank

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The SPAR supermarket at Burpengary - the midway point 35 km between Brisbane and the Sunshine Coast - has been listed for April 6 Burgess Rawson auction.
<a href="https://www.burgessrawson.com.au/buying/QLD/RedcliffeorBribieorCaboolture/Burpengary/Retail/4P0203#.VtXsDIx97u0" target="_blank">Its net rent is $178,015 pa + GST</a> (allowing 2% CPI June 2016) in Brisbane's northern growth corridor, agent Glenn Conridge said.
It comes with 15 year lease plus options through to 2039 to SPAR, the global retailer with 12,000 stores in 40 countries.
It is a modern 867sqm store with corner retail exposure amid Liquorland, pharmacy, medical Centre, childcare, dentist, newsagent, bakery plus many eateries.
The 2.04 ha site comes with 260 on site car spaces.
A Tasmanian supermarket at 212-230 Mount Street, Burnie, is currently being marketed by Burgess Rawson via an Eexpressions of interest campaign closing on Thursday 3 March.
The agents expect a sale price in excess of $17.5 million, with a new 20-year lease plus options through to 2051.
The net income is currently at $1,236,483, boosted by depreciation benefits.
Woolworths is responsible for the usual outgoings, except for building insurance.
While the retail development goes back some 50 years, it has recently been extended and refurbished, Graeme Watson, Burgess Rawson director, said.
“Not only is the supermarket said to be the highest performing in the state, it is well up there on a national level in terms of performance also."
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jchancellor-FAypfDUnLy

Burgess Rawson list Burnie Woolworths and SPAR Burpengary 

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GUEST OBSERVER
2016 will be the year the residential property cycle starts to ease, with growth in both pricing and development set to trend lower. 
As the residential property cycle recedes, the focus will shift to commercial property. Although investment activity is already running at a high level, interest in commercial property is set to intensify further in the year ahead. 
With pricing likely to be pushed one notch higher to reach record levels, emphasis will turn to increasing returns through improvements in rental levels or a property’s net operating income. Each commercial property sector and market offers very different growth potential.
<a href="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.23.40%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.23.40%20PM.png" alt="">
Residential development set to ease 
Recent years have seen an unprecedented rise in residential development, driven by high rise and high density apartments. The extraordinary growth across the industry reflects a surge in investor activity and a significant shift to apartment living in all of Australia’s major cities. 
However, apartment development is likely to slow this year ― following a trend that emerged in the middle of 2015, when approvals started to drop. A decline in approvalsasshown in Chart 1, is typically a signal the commencement of new construction activity will ease within six to 12 months. 
With fewer approvals, commencements have indeed tapered, although they’ve plateaued at a high level. This is likely to see buoyant construction activity continue into 2017.
During the next phase of this unwinding process, as projects are completed, fewer will commence to take their place. The overall effect will be an eventual reduction in development activity which is likely to then continue at a more sustainable level.
Ultimately, this means some of the developments approved over the last few years will not proceed in this cycle. Owners may choose to sell those sites, providing an opportunity for others to develop uses more aligned to the changing demand-side conditions of 2016.
Brisbane and Melbourne to lead site sales
The markets which have pushed hardest in apartment approval and development over the last few years are most likely to witness site sales in 2016. Brisbane and Melbourne stand out as the cities where developers are most likely to sell sites, as markets with sufficient demand for alternative uses in both the short and long term.
Although the Australian economy is forecast to grow below trend in 2016, underlying demand conditions in some sectors are sufficient to support alternative inner-city uses provided for in new development outlined in Chart 2.
Tourism-related activity is growing on the back of the lower value of the Australian dollar and high growth in tourist arrivals from Asia, particularly China. This is leading to demand for more tourist accommodation to cater for various consumer markets.
Similarly, demand for education is enjoying steady growth, particularly for higher education from international students. Purpose-built student accommodation is considered a pre-cursor to provide for this demand. 
The easing back of the apartment development sector could be the opportunity student accommodation providers need ― enabling them to secure their desired sites in strong locations at more reasonable prices. 
Other uses may underpin development or refurbishment of existing buildings on sites previously earmarked for residential. These include boutique retail, office, medical, child care, service industrial, car parking or mixed use.
Local or State Governments may also see an opportunity in 2016 to buy sites to provide for public uses, such as schools, medical or transport-related, to better serve the large and fast-growing high density residential communities of these inner-city locations.
<a href="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.24.59%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.24.59%20PM.png" alt="">
Alternatively, existing developer-owners in these areas may look to purchase sites to consolidate properties and plan for projects in the next residential development cycle
Turning to investment
Beyond the likely shake-out in the residential development sector, interest in commercial property as an investment is expected to continue at a high level in 2016.
As uncertainty grows in global financial markets, more investors are driven to purchase quality commercial property. The start of 2016 has already been marked by volatility in markets around the world, including Australia.
With increased investment activity over the last few years, pricing has been pushed to an all-time high, across all price points. However, although prices are high, interest rates remain low making it attractive to buy quality real estate at current prices.
However, its also important at this point of the cycle to take into consideration factors which create a high quality commercial property asset, in both the short and long-term. These include:
•Strength of location for the use(s);
•Prospect of re-letting in the case of a vacancy;
•Strength of the tenant as a leasing covenant;
•Length and terms of the lease;
•Level of the rent relative to the prevailing market;
•Prospects for rent or other property income increases;
•Physical condition of the property and the need for any capital expenditure;
•Redevelopment potential;
•Land use zoning; and
•Any building operating costs which cannot be passed onto the tenant
<a href="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.26.58%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.26.58%20PM.png" alt="">
Leasing demand holds strong
Purchasing commercial investment property at a high price places greater emphasis on the ability to increase income from the property and improve future returns.
The prospect for property income growth is driven by the strength of both leasing demand for a property and its location, as well as the number of available suitable properties competing for tenant.
In 2016, the strength of leasing demand for commercial property is likely to be highest in Sydney and Melbourne. In these two cities, growth in population, employment and the economy generally is leading the country and providing the best short-term conditions to reduce market vacancy and increase rents or other property income. 
New opportunities in the mining capitals
A significant trend in 2016 will be investors turning back to consider commercial property in Perth and Brisbane. Although these two markets have been adversely impacted by the restructure of their economies as the mining sector winds back, it seems the downturn phase of this restructure is largely over.
Looking ahead, recovery is the next phase for the Western Australian and Queensland economies and their commercial property markets. This may take some years, but it looks like the worst is over –and both Perth and Brisbane are likely to enjoy an increase in investment interest and activity over the next few years.
<a href="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.28.10%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%204.28.10%20PM.png" alt="">
Expansion into growing markets 
Higher investment yields can be found in Adelaide and Canberra commercial property and this started to stimulate investment activity in both markets in 2015. We expect this activity to increase in 2016 as relatively higher yields will continue to be found in these markets, compared to those in larger cities.
This is also in the context of downward pressure on yields being maintained across Australian commercial property, particularly for quality assets.
There will also be opportunities to invest in commercial property in regional Australia in 2016. However the outlook in these locations varies considerably and is tied to local economic and property drivers as well as being very sensitive to tenant competition.
Those factors which contribute to a quality asset, as outlined on page 2, need to be very carefully considered and applied in smaller markets, as the level of underlying tenant demand is lower and the economies of these cities continue to be heavily impacted by industry restructure.
What does it mean for investors? 
While 2016 is expected to be a volatile year and one underpinned by an acceleration of change to property drivers, there is still plenty of opportunity to engage with the market.
The easing in high density apartment development is likely to see an increase in the sale of sites once earmarked for residential projects. These sites may provide the opportunity to offer uses to service the market created by a fast increasing population in these new high density suburbs. Ideally, shorter-term uses in existing buildings may provide the option for more intensive development in the future, when the residential development cycle strengthens once again.
In the meantime, the popularity of commercial property as an investment is set to increase further in 2016, amidst volatility of global and local financial markets. 
The challenge will be buying the right property at the right price and working to improve income returns into the short to medium-term. While the larger cities offer greater short-term possibilities in this regard, buyers need to be selective elsewhere, as the timing around improvement in the fundamentals is less clear.
 
Kevin Stanley is head of property strategy and research, Corporate Financial Services, <a href="https://www.commbank.com.au/" target="_blank">Commonwealth Bank</a>.
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2016 the year the residential property cycle starts to ease: Kevin Stanley

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A group of Perth barristers has bought office chambers in the city’s new legal hub at auction for $1.45 million.
Located on the top floor of the Equus Commercial building at 580 Hay Street, the 213 sqm-partitioned office space has a 57 sqm terrace complete with putting green, two basement car bays and panoramic views of Perth Town Hall and the CBD skyline.
The building also has a gym and pool for tenant use.
The buyer group - comprising Perth criminal barristers Paul Bevilacqua; Anthony Elliott; Anthony Eyers; Edward Fitzpatrick; and Helen Prince - acquired the property with the intention of opening new legal practice, Meridian Chambers. 
CBRE’s Milne said the property offered a fantastic opportunity to secure a prime position in Perth’s premier legal precinct. 
“This sale reflected an opportunity to secure commercial space in one of the city’s most prestigious legal destinations, neighbouring leading law firms, barristers and QCs,” said CBRE’s Milne, who along with Ben Younger, brokered the deal.
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Perth legal eagles swoop on top floor nest in legal hub for $1.45 million

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Savills has opened its first office in Canada following the purchase of Toronto-based commercial real estate firm Real Facilities.
Stan Krawitz, founder and president of Real Facilities, will oversee the operation for Savills Studley as executive vice president, founder and head of Canada.  
He said Savills Studley and Real Facilities have collaborated on numerous large transactions for clients on both sides of the border for more than five years. 
"In many ways, this is just the formalization of the great partnership we’ve enjoyed. Joining Savills Studley provides us with a true global platform for our clients.  Many Canadian companies are expanding to the U.S, as well as seeking locations in Europe and Asia," he said.
"The transition has been seamless.”
Savills operates from over 600 owned and associate offices, employing more than 30,000 people in over 60 countries.
 
 
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Savills open first Canadian office with eye on Asia

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A Melbourne-based syndicator has secured two North Queensland retail centres in a combined deal worth $23.75 million.
The <a href="https://www.realcommercial.com.au/property-retail-qld-townsville+city-501646325" target="_blank">Rising Sun Shopping Centre</a> in Townsville and the Town Plaza centre in Charters Towers were sold through an expressions of interest campaign by Savills.
The blended initial yield works out to be around 7.5%.
The 9,393 square metre Rising Sun Shopping Centre at Mundingburra, six kilometres from Townsville CBD, is anchored by a 2,243 square metre Coles supermarket, with 11 specialty shops including Subway, Brumby’s Bakery and Chemist.
The 7,782 square metre Town Plaza Shopping Centre in Charters Towers, 137 km from Townsville, has a 2,579 square metre Woolworths supermarket with nine specialties including Suncorp, Millers and Rockmans.
The deal was brokered by Peter Tyson and Jon Tyson of Savills for MAB Funds Management Ltd. 
Fawkner Property purchased the properties, bringing the total assets under management to more than $150 million.
The information memorandum forecast 100% tax-effective distributions of 7.5% for the 2106 financial year.
"The market liked the strong economic background story associated with the Townsville Region given the diverse employment generators of the region which includes defence, education, mining, tourism and grazing," said Jon Tyson.
"This backdrop coupled with the Coles and Woolworths anchors and relative affordable price point of the assets generated wide ranging buyer interest."
“Property syndicates are especially attractive to the trustees of self-managed superannuation funds, looking for steady monthly income,” said Fawkner MD Owen Lennie.
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Two North Queensland retail centres sold for $23.75 million through Savills

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Raine &amp; Horne has appointed Bill Russell as its General Manager International.
Mr Russell is responsible for building Raine &amp; Horne’s global networks, property development and project marketing opportunities in Asia/Pacific, the Middle East and the Indian subcontinent.
Mr Russell’s resume includes a three-year stint as international sales manager and head of major accounts Australia at REA Group and time spent at English-speaking real estate portal, Juwai. 
He will continue with Juwai as its head of international development in conjunction with his new role with Raine &amp; Horne.
 
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Raine & Horne’s international expansion gets serious with new appointment

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The Savills International Melbourne commercial and investment property sales team have embarked on a sales pitch of their own, promoting the extent of their recent property sales across the Melbourne CBD.  
The graphic, below, highlights the recent commercial property sales, retail, office and residential development sites.
<a href="/images/2015/11/25/700_1500_chart.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/11/25/700_1500_chart.jpg" alt="" width="721" height="359">
 
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Melbourne CBD commercial sales breakdown: Savills 

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A leased industrial property north west of Melbourne's CBD on 201sqm has sold at auction for $789,000, $100,000 above reserve.
The property in Kensington, 22 Thompson Street, sold through Teska Carson's George Takis, who said  the single level, solid brick building of 180 square metres on a 210 square metre site is zoned Industrial 3, with frontages to Thompson Street, a right of carriageway to one sideand a rear laneway.
It was sold subject to a three year lease and further three year option at a rental of $19,422 per annum net.
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Melbourne CBD fringe warehouse sells on 2.4% retail yield

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The 28 room City Crown Motel at 287-289 Crown Street, Surry Hills has sold for $8.8 million.
LJ Hooker Commercial South Sydney agent Barry Griffiths secured a <a href="https://www.realcommercial.com.au/property-land+development-nsw-surry+hills-501549079" target="_blank">room rate of $314,000</a> with seven bidders.
The 385 sqm site was sold with approval for a 42 bed motel.
The purchasers were described as private partners looking to get a foothold in the inner city accommodation market.
It last traded when bought by Nola Holdings in 2002 at $3.55 million.
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