<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

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The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
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Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

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Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

Herron Todd White

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There are tough conditions to come for the Sydney retail market, according to the latest report from valuation firm Herron Todd White.
"The retail market has generally performed well over the past few years as a result of demand from investors and the low cost of funding, however that wave seems to now have passed," the firm found. 
There is concern that large chains and well-established businesses that have traditionally offered stable income are no longer considered to guarantee longevity and security for investors.
The March report also predicts that 2020 may see a softening of capital values, a reduction in returns due to a softening of rental growth, moderate increases in supply, an increase in vacancy and an increase in incentives as landlords try to attract tenants.
These conditions are expected to lead to a lack of demand.
"In some instances, the market has been adapting to the changes that are coming. In some areas there has been a shift in traditional uses. As an example, a focus on food and beverage has been observed in some areas and centres," they said. 
In some traditional strip retail precincts, a shift in expectations from landlords and a change in use has also been noted.
"In these areas, the retail strips tend to outperform others more reluctant to change and in some cases, create a revival of sorts. In other areas, there have been traditional retail properties adapting with a focus on professional and health services, particularly at the lower end of the market," the firm said.
The growing demand in this space has meant that landlords willing to adapt and alter their expectations have been able to attract good tenants.
Mixed use zoned properties with potential for redevelopment may hold up, especially if the recent increase in growth within the residential market continues and developers begin to return to the market.
Over the past year or so, while the light rail was being completed within the CBD, there was an increase in demand from high end retail tenants.
These high-end tenants were looking to secure prime locations in order to meet the growing demand for luxury goods, mainly from overseas tourists.
Within the major shopping centres, demand and the wants of consumers has driven demand from retailers.
Food and beverage is dominating that demand. Centres that cater to this by offering a unique venue and plenty of variety are doing far better than those with a traditional layout and tenancy mix.
The report predicts centres that adapt to the changing nature of the industry will continue to perform well, however further predicted a general slowing of the market and lack of demand from investors as they wait to see the outcome of recent media coverage, global events and the collapse of many major retail chains. 
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Tough conditions ahead for Sydney retail market: HTW Commercial

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Retail continues to be the most challenging sector of the property market in Brisbane, according to the latest report from valuation firm Herron Todd White.
“An emerging reality is that there is simply too much retail available across Brisbane to service relatively flat levels of tenant demand. The oversupply is exacerbated by the ongoing growth and sophistication of the online environment and the significant cost advantages that online retailers enjoy compared to bricks and mortar retailers,” said the firm.
The March report found that there is an increasing level of vacancy in areas previously considered as prime and a much greater level of focus on convenience, parking and exposure.
"This is causing a greater level of differentiation between prime and second tier properties which is evidenced in both rents and yields. Issues such as decreasing availability of parking, the growth of delivery services and the higher costs of living generally have eaten into the profitability of a number of café precincts in the inner suburbs of Brisbane," they said. 
Previously strong locations such as Bulimba, Nundah, Portside, Given Terrace, Racecourse Road, Park Road, Stones Corner, Coorparoo and Windsor in particular are seeing higher levels of vacancy and increasing levels of tenant turnover.
For some of these precincts, recovery is likely to take many years. On the investment front, buyers are increasingly aware of the retail headwinds and have become increasingly cautious.
They are more closely examining lease covenants, lettability and sustainability of rent levels before committing to purchase.
Coupled with this, the inability to replace strong retail assets is leading to a diminishing supply of good quality stock for sale and lower levels of sales accordingly.
As a result of this caution there is a clear divergence in yields emerging between good quality, well leased property and those with greater cash flow uncertainty.
For prime sub $5 million investment properties, yields have continued to tighten whilst yields for second tier properties are stagnant at best. For strong convenience retail properties, yields are generally in the 6% to 7% range but may achieve under 6% for strong well leased inner-city properties.
Good quality neighbourhood centres anchored by Coles and Woolworths are highly sought after with investment yields holding in the 5.75% to 6.75% range.
These centres are considered to be reasonably recession and future- proof. For sub-regional shopping centres, there are more sellers than buyers at the present time and markets are continuing to soften.
"The exposure of these centres to fashion and discretionary retailers is a significant drag on rents and saleability, however these market conditions open up opportunities and there are private investors scouring the market for opportunities to purchase and value add," the report found. 
There is however still the potential for ongoing diminution in rent levels for existing tenancies, and buyers are very cautious. Yields for these centres are showing a wide range and now touching over 8% for second tier properties.
In the CBD retail markets, conditions remain soft albeit that there is long term optimism in the market due to the major infrastructure projects underway.
Rents across all retail classes are stagnant at best and incentives are increasing, particularly where there is significant vacancy. The headwinds in retail are likely to be long term, with the likelihood of further pain.
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Brisbane retail continues to struggle: HTW Commercial

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The retail property market in Perth continues to face challenging conditions, according to the latest report from valuation firm Herron Todd White.
“Demand for retail space remains hampered by restrained consumer spending coinciding with the state’s sluggish economic performance”, the March report found.
“Additionally, online retail spending continues to grow rapidly and apply further pressure on the Perth retail market.”
Overall, despite some renewed optimism in the resource sector, confidence in general remains depressed.
The above has translated generally speaking to rental rates for retail premises experiencing a downward trend over the past 12 months with incentives in the form of net rent-free periods or fit-out contributions prevalent.
Landlords are being faced with the option of renegotiating lease terms to maintain occupancy or alternatively, risk extended periods of vacancy.
These conditions are more prevalent in secondary and suburban strip locations, although it appears that prime CBD mall and high street locations including Oxford Street, Leederville, Beaufort Street, Mount Lawley and Bay View Terrace, Claremont are now beginning to experience a similar situation with vacancies becoming commonplace.
Investment grade retail property such as neighbourhood shopping centres however remain a highly sought-after asset.
Yield compression is evident, largely driven by the low prevailing cost of funds in the current debt finance market and despite the general malaise that continues to impact the wider Western Australian economy including softening rentals and a steady stream of business failures and receiverships.
“Regardless, there are a number of key metrics that informed investors consider, relating to length of remaining lease term, financial strength of the tenant(s) and locational attributes, as investors take advantage of the spread between the low cost of debt and large format retail investment yields,” the report added.
“Where all or a majority of these metrics are satisfied, very tight yields are being achieved in the current market. Assets that do not possess these key criteria are however less sought after and often transact at a much higher yield reflecting the greater tenancy risk. In defiance of the above however, sites in the aforementioned high street locations remain keenly sought after despite the level of tenancy risk.”
This is a function of the scarcity of sites offered to the market in these locations and the high underlying land value. Yields for similar sites below 5.5% are not uncommon.
In respect to investment grade retail transactions, there were a number of such sales of late within the Perth metropolitan area. All were hotly contested and attracted offers between 5.00% and 6.25%.
“Interestingly, the yield differential between Coles or Woolworths anchored centres and those anchored by IGA or Metcash (or even Aldi) remains pronounced and in the order of 0.75% to 1.25%.”
Despite this, institutional owned major regional and subregional shopping centres within Western Australia have pushed ahead with expansions following the removal of the cap on maximum retail floor space and the state government’s push to create activity centres.
“These expansion projects will have a focus on delivering a better retail experience for shoppers with the creation of food hubs, entertainment options (such as cinemas), health care and in some cases, residential apartments.”
In summary, the Herron Todd White report found that the existing malaise in retail market conditions continuing at least in the short term as rental values remain under increased pressure and vacancy levels and tenant delinquency persist.
“Opportunity does exist for investors with an increased risk appetite to acquire some of the less sought-after assets in the market place at yield premiums, or assets which would benefit from repositioning or capital expenditure,” it concluded.
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Perth retail continues to struggle amid challenging market conditions: HTW Commercial

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The Canberra retail property market has been consistent for a number of years now and appears to be remaining steady, according to the latest report from valuation firm Herron Todd White.
The March report found that there has been strong retail interest in the CBD and suburban centres, particularly in the City, Kingston foreshore and Braddon.
“Secondary locations and older stock have seen low levels of interest and we expect this to continue. With the Gungahlin to City light rail now complete and a number of mixed-use developments in the works along Northbourne Avenue, there will be an increase in the amount of ground floor retail space available in the region,” the valuation firm continued.  
“We have seen a steady increase in the costs of owning commercial property in Canberra, particularly increases in territory rates.”
To offset these increases, there has been more investors negotiating for net leases and increases in recoverable outgoings.
Canberra’s retail turnover grew by 4.1 percent year on year to December 2019 compared to 2.7 percent year on year nationally.
There has been an increase in the number of restaurants and cafés in the CBD and suburban centres.
The food retailing and café and restaurant industries make up over half the retail turnover in the region and the strong growth in these industries has seen the ACT at the top of the retail trade growth list in December.
“The outlook for 2020 is for the retail property market to remain steady however any increase in interest rates or decrease in market sentiment may have a negative impact on prices in the region,” the report concluded.
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Canberra retail market continues to remain steady: HTW Commercial

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The retail market in Townsville during 2020 is likely to maintain its status quo with the greater economic climate in the retail sector making for tough conditions, according to the latest report from valuation firm Herron Todd White.
“Generally speaking, we are seeing a firming in yields in the broader retail sector, however there appears to be limited potential for rental growth in the current environment and a higher risk of increasing vacancies on the back of looming lease expiries with no current commitment to re-lease,” said the March report.
“Ageing neighbourhood centres with a single anchor tenant will likely present a higher risk due to capital expenditure requirements and cash flow volatility.”
The potential for redevelopment of these centres in the current market is also limited.
The firm ultimately concluded that the smaller sub-neighbourhood centres offering a mix of fast food and drive through options are likely to remain the retail flavour during 2020.
 
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Townsville retail market to maintain status quo in 2020; Herron Todd White Commercial

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The Cairns retail property market passed through the bottom of the cycle during the course of 2014, but the limited recovery thus far means that the retail property market remains relatively flat, according to the latest report from valuation firm Herron Todd White.
“It must be also said that retail property sales in Cairns are extremely sporadic, with most sales involving mixed use retail and office buildings or tenant buyouts of single premises,” the March report found.
The level of general commercial property sales in Cairns, inclusive of retail and commercial office premises, highlights that activity in the Cairns commercial market remains well below the pre GFC levels.
Sales volumes have been gradually rebuilding, but are still only averaging around 100 sales per annum. Median prices paid specifically for strata titled premises have increased mildly over the past several years, but the firm ultimately found that prices per square metre of floor area are mostly stable within the $2,500 to $4,500 range.
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Cairns retail market remains flat: HTW Commercial

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The extremes of drought, fire and floods, a potential virus outbreak, and other economic challenges, have taken their toll on the Gold Coast retail market, according to the latest report from valuation firm Herron Todd White.
“Stagnant wage growth and changing spending habits have been major contributors to lacklustre retail performance, while the increase in online shopping has had an impact on traditional bricks and mortar retailing,” the March report found.
Further, many established retail centres within the Gold Coast’s suburban areas have been impacted to some degree by the increase in online retailing, as well as restaurants and cafes.
In general, throughout 2019 there was increased stress on retail tenants on the Gold Coast, resulting in downward pressure on rents and upward pressure on incentives - A similar situation is expected throughout 2020.
“Landlords should consider rental affordability rather than purely the rate per square metre achievable and should carefully weigh up the pros and cons of having a tenant in place at an affordable (although possibly lower) rental, versus achieving a higher rental with greater risk of tenant failure. The global retail landscape is changing and local retailers and property owners must be aware and adapt as best they can,” the firm added.
Locally, broad examples of reinvention include the growth in quality cafes and restaurants in the suburbs on the southern Gold Coast, the creation of a China Town within Southport and on a more general scale, the increased number of convenient, drive-through cafes and food premises.
“The one saving grace is the current historically low interest rate environment, which commentators predict will stay lower for longer,” the report said.
Therefore, while rental levels have been impacted, yield levels have firmed and investor appetite for a return on investment is strong, helping to protect property values. The following case study is indicative of the strong results being achieved for quality retail investments, with recognised tenants and long WALEs.
The Pimpama Service Centre sold in September 2019 for $16.35 million, reflecting an analysed yield of 5.81%.
It was purchased by a high net worth private investor after an extensive marketing campaign.
This is a modern service station and fast food complex completed in 2018, located within a developing retail precinct at Pimpama on the northern Gold Coast. It is anchored by a United Petroleum service station and there are five fast food tenancies, including Carl’s Jr, Red Rooster, Pizza Hut, Zambrero and a Chinese restaurant.
The WALE equates to 11.27 years (by income).
The valuation firm ultimately concluded that “strong demand from investors for quality retail investments on the Gold Coast will continue throughout 2020, with the low interest rates and desirable location attributes maintaining yields at firm levels.”
In terms of overall retail property values, the firm also considers that the weaker rental market will be offset to some degree by the firm yields being achieved.
However, for long term success, it will be imperative for all stakeholders to carefully monitor changing retail and cultural trends, both locally and abroad and to adapt as best they can.
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Natural disasters and Coronavirus pile pressure on already-struggling Gold coast retail market: HTW Commercial

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The coastal retail markets have been more resilient with lower vacancy rates and stronger demand from tenants, particularly in higher profile locations, which has resulted in maintenance to upward pressure on rents in Byron Bay &amp; Ballina, according to the latest report from valuation firm Herron Todd White.
“Ultimately this is the result of a more dynamic and healthier tourist industry which has seen accommodation facilities experiencing higher occupancy rates. The current significant concerns surrounding coronavirus are likely to impact the tourist market,” the March report found.
“This is likely to initially adversely impact markets dominated by the Chinese outbound market.”
The local market is not reliant on this component and as such is less likely to have any obvious downturn and the locality could experience a rise in the domestic tourist market as Australians opt against long flights or cruises etc.
The report ultimately concluded that the market is likely to remain stable, and value levels will hold as supply and demand are likely balanced to a slight undersupply of quality investment product.
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Byron Bay and Ballina reap rewards of strong coastal retail market; HTW Commercial

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First home buyers are typically priced out of the stand-alone housing market for the Gold Coast’s central localities within two kilometres of the beach, according to the latest report from valuation firm Herron Todd White.  
“With a non-western front renovator in Mermaid Waters generally starting at around $700,000, this market appeals more to the second or third home buyer looking to secure a good position close to the beach and facilities,” the March report found.
“Typically in this suburb, house buyers are upgrading with some equity behind them or downsizing from a higher priced waterfront home, ditching the mortgage but still benefiting from the lifestyle amenity of the central location.
Currently prices are generally stable with purchasers either looking to renovate and flip for a quick profit as there is steady local demand for recently renovated, just move in, nothing to do type houses.
This is evidenced on the Isle of Capri, a residential locality within the suburb of Surfers Paradise, with recent sales for non-waterfront properties at stronger price levels.
“This locality has benefited from gentrification in recent years with the local shopping centre, Capri on Via Roma, being completely revamped and remodelled within the past few years and the tram line within walking distance,” the report said.
An example is 5 Saint Andrews Avenue, Isle of Capri which transacted in August 2019 for $1.84 million to a local buyer.
Built in 2019, the dwelling is an architect-designed, contemporary, two-level, fourbedroom plus study or bedroom, four-bathroom dwelling with rendered masonry, fibro cement sheet walls, skillion metal roof and double car garage.
It features a high standard quality fit out, two-level void over the living room, catwalk hallway, polished timber flooring, timber bi-fold doors, ducted air conditioning, wine room, inground swimming pool and established landscaping. The land area is 539 square metres.
The site was previously sold with an older dwelling for $890,000 in March 2018.
First home buyers in these central localities are mainly confined to the unit market with agents reporting that affordability is the main driver. $400,000 is generally the price point cut off and body corporate fees are a significant factor.
“First home buyers are also competing with investors who also factor in likely achievable rental income with outgoings including body corporate fees,” according to the report.
“The first home buyer generally must look for a house in the more outlying suburbs such as Carrara where it’s possible to get a semi modern three bedroom duplex unit for circa $400,000. House prices start around the mid $400,000s for a three bedroom house,” the report said.
“Mudgeeraba has seen increased townhouse and unit development within recent years with product increasingly including four bedrooms or three bedrooms plus a study or bedroom which is appealing to investors and first home buyer families alike. Mudgeeraba, located west of the M1, is also a sought-after locale for first home buyers.”
It has its own local shopping centre, schools and is within close proximity to Robina Town Centre.
Entry level three-bedroom townhouses in Mudgeeraba start at around $315,000 for something built in the 1980s with a largely dated fit out. Modern, circa 2018 built two-level townhouses providing four bedrooms, two bathrooms plus powder room with a single garage and single open carport are around $490,000.
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FHB's priced out of Central Gold coast property market: Herron Todd White

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Brisbane’s residential real estate sector performs relatively steadily throughout its price cycle, avoiding dramatic dips, swings, peaks and fluctuations, according to the latest report from valuation firm Herron Todd White.
“Long-term property owners tend to do fairly well as long as their asset selection is on the mark,” the March report found.
“There is also a fairly typical range of buyer types. Our first home owners are motivated by affordability and getting the most bang for their buck. Their tick list will obviously be driven by location, but they’re also keen to find decent size allotments, potential for renovation, proximity to amenities and easy access to the CBD or a wellestablished lifestyle hub,” the report continued.
“While many of our first home buyers would no doubt like to buy within the five-kilometre radius, their price point usually means a balance between location and property type and quality. As such, there are those able to cope with a second-hand unit in a prime near-city position, while others will seek a newer home on a larger lot in a suburb a bit further out.”
“Both options could appeal to first home buyers at a similar price point Of note also is that first home buyers are becoming more prominent in our market.”
“The $15,000 state government first home buyer grant (which is limited to new property) and federal government deposit scheme are helping to boost their numbers. Add to that low interest rates as a motivation to getting first timers on the property ladder.”
Conversely, upgraders in Brisbane are looking to draw on increased value in their existing homes to secure better-quality accommodation in their location of choice.
“Their desired suburb will probably be dictated by their households needs. Young professional couples might look to move out of units and head towards a detached home with some renovation potential so there’s opportunity to build fast equity.”
Upgraders are mostly looking for the advantage of more space or larger yards and hopefully improved location compared to their first home - While upgraders will reside anywhere from outer suburbs through to near CBD depending on the budget, many find themselves in mid-range suburbs with easy access to the city.
“Family buyers could almost be considered an advanced subset of upgraders. These buyers are typically driven to certain properties by school catchments, proximity to public transport, parks, amenities and lifestyle amenities.”
“While many family buyers might want to look for renovation potential, there are plenty who are motivated to acquire something ready to live in so as not to tie up their weekends doing upgrade work.”
Brisbane downsizers and empty nesters are looking for low-maintenance homes with lock-and-leave potential to allow for trips out of town - a smaller detached dwelling of good quality and with a low maintenance yard, the report found.
“We are also seeing ever increasing numbers seeking accommodation in high-end units of minimum two (even three) bedrooms. They like the security while still having space for the kids and grandkids to stay. Downsizer locations vary from the CBD through to the bayside suburbs.”
Downsizers are also drawn to large apartments in suburban nodes within close proximity of shopping centres, amenities and hospitals.
The final buyer group highlighted in the report is the business professional - These buyers want to be close to the CBD or suburban nodes so their commute is short.
“Again, low maintenance is a priority as is public transport and lifestyle facilities. It’s suspected that these buyer numbers may well increase from the interstate migrant cohort coming to Brisbane chasing a better lifestyle than in Sydney or Melbourne,” the report found.  
“The above list is, of course, not exhaustive. We are seeing a societal demographic shift with the rise of single-person households, multi-generational homes, single-parent families and share ownership among friends.”
“It’s envisaged that these varying household makeups will spur innovative and thoughtful design changes that will become more common over the next few years,” the report concluded.
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