<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Joel Robinson

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

By the time S&amp;S Projects began planning <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia</a>, the developer already had three Rainbow Bay projects from which to draw.

Flow, Awaken and Esprit had given <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a> experience developing in the southern Gold Coast enclave, as well as buyer feedback that could be carried into its fourth project, a boutique collection of 38 residences at 271 Boundary Street.

“We have experienced a lot of success in this location and as this was our fourth building we had taken all of the learnings and buyer feedback from previous projects to arrive at a design and apartment mix that we believe had captured all of that experience and remained a true S&amp;S Project in its design and amenity,” the developer said.

That experience has translated into a collection of two, three, four and five-bedroom residences including two penthouses positioned on an elevated corner in Rainbow Bay, where the site opens to multiple coastal view corridors and the area's distinctive north-facing bay.

[smartcode_project:default project_id=140491 project_image_fid=284542]

S&amp;S Projects says the Boundary Street site took years to assemble, having previously comprised six units, a house and a duplex. The developer worked individually with the existing owners to bring the properties together after an earlier attempt to sell the site had been complicated by the number of parties involved.

“We are constantly looking for properties that meet our brand standards of location, views, and sites that are rare with unique aspects that we can develop to maximise the lifestyle of residents who live in our buildings,” S&amp;S Projects said.

The Boundary Street site gave <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a> a different set of conditions to work with.&nbsp;

“Our design brief was to design a building that took advantage of its unique elevated corner siting offering a range of spectacular view corridor opportunities,” Cottee Parker said.

“The design had to reinforce the strong brand pillars of S&amp;S which are quality, luxury and superior resident amenity.”

[smartcode_project:default project_id=140491 project_image_fid=284543]

Cottee Parker responded with a sculptural floorplate and strong horizontal banding, with continuous balconies and landscaped planters wrapping the building. Operable screens along the balcony edges allow residents to manage light and shade while creating an additional layer of pattern across the facade.

The tower rises above a heavily landscaped podium incorporating the entry lobby and recreational level, while the broader architectural expression takes cues from Rainbow Bay's coastal environment through its organic forms and light material palette.

Cottee Parker says the design has also been developed to complement S&amp;S Projects’ three previous Rainbow Bay developments while retaining its own architectural identity.

Inside, the residences continue that coastal response through two interior schemes centred on warm timbers and neutral tones, alongside patterned natural stone and fluted detailing.

Floor-to-ceiling sliding glass doors connect open-plan living areas to wraparound balconies, while natural stone is used across benchtops, splashbacks and bathroom walls. Specifications also include light-washed timber flooring, gas fireplaces, integrated bar and wine fridges, freestanding stone baths and 100 per cent wool carpet.

[smartcode_project:default project_id=140491 project_image_fid=284559]

Cottee Parker Director Sandra Brown said the intention was to create an architectural response closely connected to its surroundings.

“Imagine architecture that breathes with the rhythm of nature, where every curve and line flows seamlessly – creating spaces that dance with the elements, where sunlight kisses every surface and the gentle sea breeze fills every space,” Brown said.

The lessons S&amp;S Projects carried into Radia also extend to its resident amenity, with a substantial collection of shared facilities planned for just 38 residences.

A dedicated Residents Club will include a lap pool and spa, gymnasium, ice bath, sauna, steam room and hot rocks sauna. A residents' lounge, private dining room, outdoor dining and barbecue area and business centre are also planned, along with storage and dedicated surfboard and beach lockers.

S&amp;S Projects Founding Director Paul Gedoun said the facilities were also designed around the project's Rainbow Bay setting.

“Each amenity is designed to capitalise on the lifestyle of Rainbow Bay, ensuring residents can enjoy the relaxed coastal experience the enclave is famous for,” Gedoun said.

[smartcode_project:default project_id=140491 project_image_fid=284555]

<a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> says purchasers to date have predominantly included local downsizers, interstate lifestyle investors and families, alongside a strong contingent of repeat S&amp;S purchasers.&nbsp;

According to the project sales team, feedback has centred on the natural stone and joinery, generous floorplans, natural light and the ability for residences to capture views in multiple directions. The completed Flow, Awaken and Esprit developments have also provided prospective purchasers with an existing reference point for S&amp;S Projects' delivery in Rainbow Bay.

There has also been interest from high-profile surfers and people connected to the surf community, with the elevated building providing outlooks towards several of the area's recognised surf breaks.

Radia continues S&amp;S Projects' concentration of development in a tightly held part of the southern Gold Coast, close to Rainbow Bay Beach, Snapper Rocks, Duranbah Beach, Greenmount Beach and the Tweed River. The neighbourhood also includes a growing collection of hospitality venues, while Coolangatta Airport provides connections beyond the southern Gold Coast.

Hutchinson Builders is now delivering Radia, continuing the project from early works privately funded by S&amp;S Projects. The $250 million development is expected to reach completion in the third quarter of 2027.

“With our history in Rainbow Bay, we have been fortunate to be heavily involved in how the development landscape has unfolded and this project slides into the property landscape comfortably and will feel like it was always there,” the developer said.

[smartcode_project_cta:default project_id=140491]

How three Rainbow Bay projects shaped S&S Projects' fourth, Radia

Nearly 40 years after <a href="https://www.apartments.com.au/developers/sheida-group">The Sheida Group</a> began working on the northern Gold Coast, the family-owned developer is continuing its involvement in Hope Island with Marina Point Apartments, where apartment scale has been a central part of the development.

Across the 235-apartment waterfront community, the developer has prioritised larger floorplans, substantial open space and marina access, responding to a purchaser base that has predominantly comprised local owner-occupiers and downsizers moving from larger homes.

"Having already delivered Anchorage nearby, we also understood this particular market and how people live here," developer Rick Sheida said.

"<a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Marina Point&nbsp;Apartments</a> gave us the opportunity to build on those lessons and create the next evolution of our work in Hope Island."

[smartcode_project:default project_id=136992 project_image_fid=293151]

The Sheida Group acquired the Marina Point land around 2018. Its appeal, Sheida says, went beyond having a waterfront address.

"What attracted us was not simply that the site was waterfront, but the way it meets the water," he said.

"It sits at the junction of broad waterways, creating long sightlines, changing views and a sense of movement throughout the day. Its shape also allowed us to orient the buildings outward, improve privacy between residences and make better use of natural light and breezes."

The buildings have subsequently been positioned around the perimeter of the site, allowing most apartments to take in water views while others look across the resort amenity or hinterland. Once all four buildings are complete, approximately one hectare of the site is expected to remain as open space.

The waterfront also provides the potential for up to 50 marina berths, with berths ranging from 15 to 24 metres and options designed to accommodate wider vessels including catamarans. Access from the marina to the Gold Coast Seaway is bridge-free.

[smartcode_project:default project_id=136992 project_image_fid=293149]

The developer says purchasers to date have predominantly been owner-occupiers and downsizers from <a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Hope Island</a> and elsewhere on the Gold Coast, generally aged between 45 and 70. Many have sold larger family homes or properties requiring significant upkeep.

That purchaser profile informed a design brief centred on retaining the space and functionality of a larger home within an apartment format.

"Many of our buyers are coming from large, well-appointed homes in Sanctuary Cove and the surrounding area," the project team said.

"They are accustomed to generous spaces and thoughtful design, so it was important that the apartments delivered the same sense of comfort and functionality.

"Every room needed to feel well proportioned, every space needed a clear purpose and nothing could feel compromised."

Residences range from 139 sqm through to 319 sqm penthouses, with two car spaces provided to apartments and three to penthouses. Minimum 2.7-metre ceilings, floor-to-ceiling glazing, entertainer's kitchens with butler's pantries, substantial storage and balconies ranging from 18 sqm to 37 sqm further reflect the emphasis on space.

One purchaser from Sanctuary Cove has taken the concept further, combining two of Marina Point's largest apartments to create a 552 sqm residence with raked ceilings reaching up to 4.5 metres.

[smartcode_project:default project_id=136992 project_image_fid=293155]

With Building 1 now complete, the developer is also seeing its original design assumptions tested against purchaser feedback.

Three completed display residences allow prospective purchasers to compare apartment sizes, layouts, finishes and outlooks in person. The sales team says one of the most consistent responses has been to the scale of the apartments, with visitors describing them as feeling more like homes than conventional apartments.

The first stage of resident amenity is also operational, including a 25-metre heated lap pool, Technogym-equipped gym, infrared sauna, golf simulator and yoga room. Future facilities are set to include a resort-style pool and spa, waterfront barbecue area and a residents' lounge with a library, fireplace, pool table, kitchen and bar.

Rather than treating the four buildings independently, the design brief called for a complete waterfront neighbourhood, balancing private residences with landscaping, open space, marina access and shared amenity.

[smartcode_project:default project_id=136992 project_image_fid=293152]

For Sheida, Marina Point Apartments is ultimately an extension of the developer's longer-term involvement in Hope Island and its view of how the suburb is evolving.

"We were equally interested in the long-term future of Hope Island," he said.

"Its position between Brisbane and the central Gold Coast gives residents access to both, while improving transport connections are making the northern Gold Coast increasingly attractive as a permanent place to live."

Hope Island Marketplace is 1.3 kilometres from Marina Point, while Sanctuary Cove and Paradise Point are within six kilometres. Links Hope Island, The Pines and The Palms golf courses are also nearby, and the new Hope Island train station is under construction around five kilometres from the development.

Building 2 is under construction, with completion scheduled for 2027.

[smartcode_project_cta:default project_id=136992]

Marina Point Apartments continues The Sheida Group's 40-year Hope Island story

Sydney-based fund manager and developer EG is seeking to turn part of the former Roche pharmaceutical campus in Cromer into a 130-home residential community, introducing a mix of low-rise apartments, townhouses and duplexes to the tightly held Northern Beaches market.

The SJB-designed masterplan has been prepared for the 3.2-hectare site at <a href="https://www.apartments.com.au/new-apartments/100-south-creek-road-cromer-nsw-2099">100 South Creek Road</a>, part of the former Roche landholding that EG acquired for $55 million in 2017 through its Yield Plus Infrastructure Fund No. 2.

EG is proposing what SJB describes as a new "urban village" set within the site's significant existing tree canopy.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="482c9a58-49f1-4c53-a12e-aaa02336229f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.20.57%E2%80%AFAM.png?VersionId=hZP8_XfPnfNq500dbcjlpVwYU1ebhF9_" />

Around three hectares of the site is considered developable, with the balance incorporating a riparian corridor that would be rehabilitated and revegetated as part of the proposal.

The indicative masterplan comprises approximately 72 apartments in low-rise residential buildings and another 58 townhouses and duplexes.

The apartment component would include around five one-bedroom, 37 two-bedroom and 30 three-bedroom residences, while the townhouse and duplex component would be spread across several different housing typologies. The overall scheme would deliver around 19,500 sqm of gross floor area at an FSR of 0.6:1.

Parking for the apartment component is currently estimated at around 112 resident spaces and 14 visitor spaces, while the townhouse and duplex component would have 116 resident and 12 visitor spaces.

A significant part of the masterplan revolves around retaining the established landscape character of the former Roche campus.

SJB's plans show heavily treed setbacks along both Campbell Avenue and South Creek Road, a centrally located collection of significant native and exotic trees retained as communal open space, and the regeneration of the northern bushland area.

The existing creek corridor along the site's western edge would also be rehabilitated and revegetated, creating additional separation between the new homes and the neighbouring Northern Beaches Business Park.

A heritage-listed cottage and its garden setting would be retained and restored, with SJB flagging its potential adaptive reuse as communal space.

The proposal also includes new communal recreation areas, pedestrian connections to Campbell Avenue and South Creek Road, and a contribution toward improvements to the adjoining Michele Reserve.

Vehicular access would be restricted to South Creek Road, with no vehicle entry proposed from Campbell Avenue. The main internal road would largely follow the site's existing driveway to minimise the impact on established trees.

SJB said residential redevelopment presented an opportunity to retain the majority of the site's heritage-listed mature trees while delivering a broader range of housing types than typically seen across the Northern Beaches.

"The site being 3.27 hectares in area represents one of the largest vacant sites in common ownership in the Cromer and Dee Why area capable of residential renewal," SJB noted in the masterplan.

The architect said the proposal would particularly target housing diversity through townhouses and other "missing middle" typologies suitable for singles, young families, downsizers and retirees.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="e3f5d841-8491-427e-8ada-c70d3d03d6bc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.21.02%E2%80%AFAM.png?VersionId=xTV7r.q8lrTzC9vKzMS9zMbjm9wKwhgm" />

The site emerged following the subdivision of the former Roche campus into eastern and western parcels.

EG has already transformed the western portion into the Northern Beaches Business Park, which incorporates heritage-listed office space, modern warehouses and indoor recreation facilities.

The proposed residential community, referred to as Cromer East in SJB's plans, adjoins established housing to the north, east and south-east, while the business park sits beyond the creek corridor to the west.

It is also within 250 metres of Pittwater House School and Northern Beaches Secondary College, while bus stops within a three-to-five-minute walk provide connections to Dee Why, Brookvale and express services to the Sydney CBD. Cromer Park and the South Creek open space corridor are also nearby.

EG acquired the broader 7.5-hectare former Roche campus in 2017 for $55 million through its Yield Plus Infrastructure Fund No. 2. The campus at the time comprised more than 25,000 sqm of industrial and office buildings set within landscaped grounds.

The current residential site represents the eastern portion of that original holding.

EG's investment strategy for the fund has centred on acquiring income-producing real estate with longer-term rezoning and repositioning potential, particularly assets benefiting from infrastructure and changing land-use patterns.

EG also has an established residential track record across Sydney, including Bosco in Five Dock, Tempo in Drummoyne, The Flour Mill in Summer Hill and Pindari in Randwick.

The developer says it has delivered more than 1,000 homes to date, with a further 3,000-plus residences across its development pipeline.

First look: EG plans 130 apartments on former Roche pharmaceutical campus in Cromer

<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

SP Setia plans three-tower finale for Carlton’s former CUB precinct

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Melbourne and Coffs Harbour are approaching the peak of market cycle though there are none at the peak position, according to valuation firm Herron Todd White's industrial property clock for May.
There's none in the 'starting to decline' category as well, although competition is hot in the rising market position, with Sydney also a rising market. 
The others in this category are Hobart, Ballarat, Bendigo, Burnie, Devonport, Echuca, Gold Coast, Launceston, Lismore and Sunshine Coast. 
There are no changes to the clock as well in terms of positions. Two capital cities, Adelaide and Darwin, are at the bottom of the cycle with Perth approaching the bottom of the market as well. 
 
<a href="https://www.propertyobserver.com.au/images/2017/05/19/Screen%20Shot%202017-05-19%20at%2011.10.35%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/19/Screen%20Shot%202017-05-19%20at%2011.10.35%20AM.png" alt="">
Two other capital cities, Brisbane and Canberra, are at the start of the market recovery period, the clock shows. Others in recovery mode are Cairns, NSW Central Coast, Horsham, Mildura, Rockhampton and Tamworth.
While Coffs Harbour may be approaching the peak of the industrial market cycle, the rental market remains price sensitive with a broad range of rents being achieved which confirms the uncertainty in the market, say HTW. There remains a slight oversupply of smaller industrial bays in the lower price bracket and valuations of poorly leased property will invariably be lower than those with vacant possession for this owner-occupier dominated market. This is not the case for larger properties where investors are active and the strength of leases is vital to yield and value levels. 
There has been a low sale offering of large industrial property in 2017 and subsequently low volume of transactions. Available sales indicate firm yields, echoing the low interest rate climate. There is some development activity within the prime estates, with most purpose built to end user requirements. Land prices in Coffs Harbour should continue to trend upwards as supply diminishes, say HTW. 
So far in 2017, the industrial market in Melbourne has been tracking well, with a “noticeable increase in values” over the previous 12 months, according to HTW. The market has been assisted by continually low interest rates, low rental levels which continue to be stable and an increasing demand for smaller warehouse units. 
The industrial property market is expected to be fairly positive throughout 2017, says HTW, provided there is no oversupply or external shocks to the market.
 
 
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jonathanchancellor-7SQnKwU6yx

Melbourne, Coffs Harbour approaching peak of industrial market cycle: HTW May clock

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The eastern suburbs have continued to define the meaning of a hot, hot, hot property market, according to Herron Todd White’s recent report.
The property valuation firm says that although the east has been hot across the board.
It considers the $2 million to $3 million price bracket for houses and $1 million to $1.5 million price bracket for units to be the strongest price points in the current market.
Paddington has been a stand out suburb for houses with a 2016 median price of $2.125 million which is up 21.4% from 2015 (source: PriceFinder).
Paddington is a highly regarded suburb close to Sydney’s CBD and comprises mainly period style terrace homes.
"The high performing Paddington market has recently been driven by high quality renovations of terrace style housing which is popular with the owner-occupier market, mainly professional couples and small families.
An example of such a property is <a href="https://www.realestate.com.au/sold/property-house-nsw-paddington-124757578" target="_blank">2 Olive Street</a>, Paddington (above) which sold in March 2017 for $2.46 million.
"This property is a typical Paddington terrace comprising 3-bedroom and 1-bathroom accommodation with no car accommodation and is situated on 101 square metres of land," the report stated.
The home at 2 Olive Street is classified as being architect-redesigned and features a high quality renovation, exactly what the market demands, resulting in a very strong sale price.
"With Paddington being such a highly desirable location and having a limited supply of stock, we expect to see recent strong sales prices sustained and predict continued strong growth in the short to medium term," the report commented.
Within the eastern suburbs unit market, the suburb of Coogee has been a stand out performer, especially in the $1 million to $1.5 million price bracket.
The 2016 median price for Coogee units was $1,037,500 which is up 17.9% from 2015 (source: PriceFinder).
"As an example of what this median unit price will get you, 7/3-7 Kidman Street, Coogee recently sold for $1.125 million.
"This property was a near original 1970s unit comprising 2-bedrooms and 1-bathroom with a 1-car lock-up garage and features restricted ocean views.
"This market is driven by both investors and owner-occupiers which comprise a mixture of singles, couples and down-sizers.
"The desirable beachside location has always been a main driver for the Coogee unit market and with limited new unit development in the area, we expect to see the trend of strong growth continue into the future," the report stated.
The prestige market in the eastern suburbs is continuing to see strong sale results.
"As expected, the main drivers of this prestige market are blue-ribbon suburbs close to the city within popular lifestyle neighbourhoods, close proximity to private schools and with view corridors of the ocean or Sydney Harbour.
"Demand is still extremely strong for high quality renovated homes and units with cashed up and time poor buyers ready to move on the right property, without wanting to do the hard work themselves," the report suggested.
A recent example is 84 Paddington Street, Paddington which recently sold in March 2017 for $7.1 million.
This property comprises a 5-bedroom, 3-bathroom Victorian terrace with parking for three vehicles and situated on 191 square metres of land.
The property was previously sold on 6 March 2013 for $2.8 million prior to renovation.
"This continued strong demand and limited supply of prestige property will keep prices strong in the short to medium term."
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j.ballantyne1990-6AQqhLzZaK

Sydney's hot eastern suburbs residential market: HTW

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The south east of Queensland has received good but patchy rain with parts having received up to 100 millimetres recently, according to Herron Todd White’s latest report.
The property valuation firm says that the band of rain has extended as far west as St George and Roma however these areas have only seen grass rain and not the high volume harvesting rain that so many had hoped for.
“Most irrigators in the St George region appear to have come up about one watering short, even on reduced plantings.
"It will therefore be interesting to see what effect this will have on yields.
"Picking is now underway, so all have their fingers crossed that it will stay dry for the next couple of weeks or so in order to allow picking to be completed,” the report stated.
It noted recent months have seen some very solid sales particularly within the Condamine region.
"Three that spring to mind that we feel are consistent with the market are the holdings of No. 4 approximately 75 kilometres to the west of Condamine and the aggregation of Woodlands and Karreel, approximately 40 kilometres south west of Condamine.
"Both comprise mixed farming and grazing holdings with the cultivation on each reflecting in the order of $2,200 to $2,250 per hectare.
"We would view this as broadly consistent with the market today; a market that has seen sound to good quality cultivation strengthen by upwards of $500 per hectare over the past 12 to 18 months,” the report commented.
HTW has also noted the mid to late 2016 sale of Cotswold in the same region.
It sold for $14.1 million including approximately $500,000 worth of plant.
It comprises 7,410 hectares of country including some 640 hectares of centre pivot country underpinned by a 1,600 megalitre storage.
Water rights include two unsupplemented entitlements as well as overland flow.
The sale reflected approximately $6,175 per hectare for the irrigation country and around $1,750 per hectare for the dryland cultivation.
This sale is also viewed to be broadly consistent with the market,” the report stated.
In very recent times, market activity appears to have come right off HTW says.
“We anticipate that this is not because the market is lacking confidence, rather it is more to do with a poor start to the season broadly felt by everyone.
"We feel that many potential vendors are holding off until more favourable weather conditions arrive.
"The cattle market is still strong and it will only take a couple of good falls within the farming belt in the next month or two in order for things to turn around,” the report commented.
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South East Queensland rural property sales begin to improve: HTW

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The Illawarra residential market prices continue to grow strong, according to Herron Todd White’s recent report.
The property valuation firm says that various factors such as low interest rates, employment and decreasing affordability in Sydney are creating strong demand for the area.
“There has been strong growth in the Illawarra residential market for a number of years in all locations and property types.
The market is particularly driven by what is happening in Sydney.
There is a flow on effect from Sydney to Wollongong to the Shoalhaven.
Low interest rates, stable employment, improving infrastructure and decreasing affordability in Sydney all combine to create strong demand for residential property at all price levels.
There are a number of factors that could cause the market to change.
These include interest rate hikes, an over supply of new properties, an economic downturn in the region or a crash in the Sydney market.
Interest rates are currently at record lows and it appears that both owner occupiers and investors are willing to borrow more and more to fund transactions.
Any interest rate hike may cause investors in particular to hold off buying property until it becomes apparent that interest rates are not going to keep increasing.
Without as many investors in the market, demand will be lower and competition between buyers will be reduced,” the report stated.
Wollongong in particular is in the middle of a construction boom, especially in unit developments according to Herron Todd White.
“Wollongong is in the midst of a construction boom.
In particular new unit developments are at an all time high and the supply of new units are at unprecedented levels.
In addition there are many new land developments of varying sizes with the majority in West Dapto, Calderwood, Shell Cove and South Nowra.
As long as the supply is being met by strong demand the market will continue to be strong.
However all this new supply may exaggerate any downturn in the market if developers cannot offload their new stock,” the report advised.
Herron Todd White says that Illawarra’s economic situation is tied with its property market and therefore influences it.
“The Illawarra property market is strongly linked to the economic fortunes of the region.
The region continues to diversify from its mining and steel roots and has enjoyed good growth in medical and aged care and tourism sectors.
That said, market confidence is still derived from the steel and mining sectors.
Major downturns in these sectors could result in a downturn in the property markets.
With the region being more and more accessible to Sydney through improved infrastructure, the link between the Sydney and Illawarra property markets is closer than ever.
It is likely that the events that would cause a slow down in the Sydney market would also impact the Illawarra and if Sydney buyers were removed from the Illawarra market demand for property would be reduced,” the report stated.
A three bedroom house at <a href="https://www.realestate.com.au/property-house-nsw-figtree-125477566" target="_blank">9 Mark Street</a>, Figtree (above) has been listed for between $699,000 to $768,900.
Similarly a two bedroom house at <a href="https://www.realestate.com.au/property-house-nsw-woonona-125478226" target="_blank">45 Hillcrest Avenue</a>, Woonona (below) has been listed for $600,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/16/45%20Hillcrest%20Avenue.jpg" alt="">
A two bedroom house at <a href="https://www.realestate.com.au/sold/property-house-nsw-north+wollongong-125324826" target="_blank">1/4 Pleasant Avenue</a>, North Wollongong (below) was recently sold for $570,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/16/1_4%20Pleasant%20Avenue.jpg" alt="">
Similarly a four bedroom house at <a href="https://www.realestate.com.au/sold/property-house-nsw-horsley-125281798" target="_blank">21 Norman Clark Crescent</a>, Horsley (below) was recently sold for $955,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/16/21%20Norman%20Clark%20Crescent.jpg" alt="">
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Illawarra residential market continues to grow strong: HTW

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Sydney's St George area is continuing in its strong growth, according to a recent Herron Todd White (HTW) report.
The property valuation firm says that the St George area is continuing its strong growth period with the hottest price points for houses generally being $1 million to $2 million and $660,000 to $700,000 for units.
For houses, the suburb of Oatley has been a very strong performer, having a 2016 median house price of $1.602 million, up 14.5% from 2015, according to PriceFinder.
"This strong growth in Oatley is mainly driven by locality, with its village-like feel and well positioned homes on comparatively large blocks of land, many with good water views," the report stated.
"An example of a typical Oatley sale within this strong price point is 3 Gungah Bay Road (above) which sold on 04 January 2017 for $1.7 million.
"This property comprised a dated but well maintained, two storey, 5-bedroom, 4-bathroom residence with double garage on 765 square metres of land."
Oatley is also within close proximity of Hurstville which provides a high level of amenities and good public transport infrastructure.
The main buyer profiles within the suburb are owner-occupiers, predominantly families, with minimal investor demand.
“With Oatley being relatively affordable compared to some surrounding suburbs and strong owner-occupier demand, we expect to see sustained and continued growth in this market," the report said.
"In generalising the St George area, we recognize that there is still strong demand for the fixer upper, however there is a growing trend towards completed contemporary dwellings.
"Buyers are currently prepared to pay a premium for the privilege of being the first to occupy a residence and will part with their hard earned when they know they are getting the very latest inclusions and high quality finishes."
Generally these houses will provide good levels of accommodation (four to six bedrooms), home automation, high quality finishes and appliances and multi vehicle garaging (four to six cars).
The strongest results for this style of property are being found in the $2.5 million to $5 million range.
This is mainly being driven by overseas buyers, expats and locally based professionals.
"There could be a softening in this end of the market depending on interest rates, lending policies and exchange rates and overseas market conditions," the report advised.
"However this is seen as unlikely in the short to medium term.
"When analysing the unit market, Brighton Le Sands gets a notable mention as a strong performer with a 2016 median unit price of $680,500, up 4.7% from 2015.
"In a running theme, location has been the main driver of this market being within close proximity of the beach, an increasingly popular restaurant and café scene and good bus services.
"With many 1970s, walk-up style unit complexes within the suburb, it attracts investors and owner-occupiers alike."
A recent sale of a typical unit was 10/32-34 Queens Road (above) which sold in February 2017 for $675,000.
This was a mainly original 1970s unit with two bedrooms, one bathroom and one car garage, located on the top floor.
"Potential for new transport links and hubs within the vicinity of Brighton Le Sands is expected to drive strong growth in the short to medium term," the report advised.
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St George and Oatley residential market strength continues to grow: HTW

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In the past 12 months, $61 million worth of commercial scale Northern Territory freehold has sold - a strong increase on 2015, according to a recent Herron Todd White (HTW) report.
The property valuation firm says that despite the uptick in sales, water allocation and soils rights in the area are very tight.
“We are aware that Indian Sandalwood growers Quintis (formerly TFS) and also local African mahogany growers are finding it difficult to secure any expansion land that fits the bill,” the report stated.
“This tight supply has potential NT farmers (including foreign buyers) looking at pastoral leasehold land and its potential for landing a diversification permit to develop farm land.
“With improving profits from record live cattle export prices, local cattlemen have also been more active in acquiring smaller freehold (depot type) blocks.”
Sales included <a href="https://www.realcommercial.com.au/property-commercial+farming-nt-douglas+daly-501718973" target="_blank">Early Storms</a> (above) a well established, 629 hectare melon farm in the Douglas Daly (200 kilometres by road south of Darwin).
It made $9,765 per irrigated hectare over 279 hectares with 7.7 megalitres per hectare per annum ground water allocation.
<a href="https://www.realestate.com.au/sold/property-mixed+farming-nt-katherine-7821686" target="_blank">Phoenix Park</a> (below), on the outskirts of Katherine, was a strategic acquisition by a subsidiary of Hancock as a cattle spelling, feeding and processing facility for the company’s expanding herd in the NT.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/26/Phoenix%20Park.jpg" alt="">
This property last sold in 2008 for $5.8 million with relatively little improvement in between. It comprises a mix of irrigation land (plus land for irrigation expansion), dry land cropping and a spelling yard registered for 20,000 head of 350 kilogram cattle.
Two Rivers, a 14,120 hectare freehold with Stuart Highway frontage, was sold for $2.4 million to a southern family to develop as a live cattle export depot.
HTW said that in the past 12 months, there has more mango plantations sales throughout the Top End than in the past five combined.
Five commercial scale mango farms sold to locals or Australian based companies with long term experience in the NT.
Value rates are steady, generally between $20,000 to $30,000 per planted hectare for mature, old variety trees, with a premium for Calypso at around $40,000 plus per planted hectare.
The Oolloo Farms aggregation of four farms in Darwin, Katherine and Mataranka, sold for around $18 million.
However, HTW noted that the sale included an onerous lease in place to the sitting tenant for a net return of about 8%.
Northern Territory rural purchasers were concerned with long-term goals, according to Herron Todd White’s December 2016 report.
It noted the first Month in Review for 2016 stated that the year was shaping up to be another active year on the pastoral sales front in the Northern Territory and Kimberley.
"It’s fair to say that the year has not disappointed,” the HTW report stated.
"A lot of the interest has come from the big end of town, both overseas and Australian purchasers.
"Many of these purchasers appear to be more concerned with positioning themselves in terms of long term food security than short term price movements.
"However, they are also no doubt benefiting from buoyant live export prices at present.
"Despite the volume of sales this year, there are still parts of the Territory which have not been sold."
Of special interest is Kalala, 3,760 square kilometres at Daly Waters and Mount McMinn, 809 square kilometres, both being actively marketed at present.
At the time of writing these had not sold but we understand that they have both attracted good interest.
The NT government has recently announced a $4.1 million upgrade of the Berrimah Export Yards (the major marshalling point for live cattle exports).
The upgrade will involve construction of two shelters which will accommodate up to 4,000 head of cattle and assist in the year-round processing of cattle.
It has also been an active year for horticultural properties, especially mango plantations. Larger scale plantations such as Pine Creek Mango Plantation and Jabiru Tropical Orchards have sold.
A major Calypso plantation aggregation at Mataranka, Katherine and Berry Springs is also being marketed.
“For our local office, the highlight of the year was definitely the review of the unimproved capital values for the pastoral estate across the Northern Territory, which we carried out on behalf of the Territory Government.
"This project involved re-assessment of the unimproved carrying capacity of every pastoral lease in the Territory on an individual basis, then assessing their unimproved capital values based on this information.
"It was a big undertaking that required us to call in a variety of expert opinions to assist in providing consistency of approach across a variety of country types from Alice Springs to the Top End,” the report stated.
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NT rural market heats up with $61 million of sales: HTW

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NSW's Griffith residential market is approaching its peak, according to Herron Todd White’s April report.
The property valuation firm says that values have increased over the past six to nine months.
“The Griffith residential property market appears to be approaching the peak of the market.
"Values have been increasing in most market segments over the past six to nine months largely due to a shortage of stock relative to demand.
"The fear of missing out is pushing more affordable brackets ($250,000 to $350,000) well above expectations.
"The rise in the market is not limited to entry and middle market segments with buyers in the upper end of the market also showing a strong appetite producing strong results,” the report stated.
Low interest rates, shortage of land and optimism is driving the market at the present moment.
“So what is driving the market at present?
"A combination of things, including low interest rates, a shortage of land and the biggest factor being the optimism in the local agricultural sector and its impact on employment and investment.
"So what is likely to slow it down?
"The cost of money rising (interest rates), employment instability, the release of more land and the inability of the economy to retain its confidence,” the report warned.
A two bedroom house at <a href="https://www.realestate.com.au/property-house-nsw-griffith-125329774" target="_blank">14B Grimison Avenue</a>, Griffith (above) has been listed for $249,000.
Similarly a three bedroom house at <a href="https://www.realestate.com.au/property-house-nsw-griffith-125255310" target="_blank">62 Madden Drive</a>, Griffith (below) has been listed for $349,000.
The block of land was sold in 2015 for $95,000 with the house built in 2016.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/16/62%20Madden%20Drive.jpg" alt="">
A three bedroom house at <a href="https://www.realestate.com.au/sold/property-house-nsw-griffith-125166842" target="_blank">6 Evanside Parade</a>, Griffith (below) was recently sold for $300,000.
It was last sold in 2012 for $252,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/16/6%20Evanside%20Parade.jpg" alt="">
Similarly a four bedroom house at <a href="https://www.realestate.com.au/sold/property-house-nsw-griffith-125074086" target="_blank">72 Bromfield Street</a>, Griffith (below) was recently sold in April this year for $300,000.
It was last sold in 2008 for $282,500 and in 1996 for $147,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/16/72%20Bromfield%20Street.jpg" alt="">
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Griffith's residential market approaching its peak: HTW

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The current state of Melbourne's Outer South Eastern market would currently be described as slowly strengthening, according to Herron Todd White’s latest May report.
The property valuation firm says that interest in suburbs such as Clyde, Officer and Pakenham are increasing.
“With continued population growth, current low interest rates as well as readily available land, residents are looking to newly developing suburbs such as Clyde, Officer and Pakenham for the relatively affordable land or established homes.
“This is especially true for first home buyers and young families who are looking for a dwelling as opposed to a smaller inner city apartment or townhouse with limited backyard.
“This area is described as a growth corridor, with prices for new residential land noticeably increasing over the past 12 months as detailed in the below graph,” the report stated.
<a href="https://www.propertyobserver.com.au/images/2017/05/19/Screen%20Shot%202017-05-19%20at%209.55.20%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/19/Screen%20Shot%202017-05-19%20at%209.55.20%20am.jpg" alt="">
Herron Todd White says that investments in public transports, shops and major roads are also increasing the popularity of the area.
“With the government’s commitment to infrastructure and investment in the region including public transport, shopping precincts and major roads, the popularity of the area is expected to continue.
“The main factor that could potentially have an effect on property prices within this region would be interest rates.
“Being that the area is made up of young families and first home buyers, a rise in interest rates may discourage buyers from getting into the property market which could slow the rise in property demand and as such have an impact on property prices.
“However with continued growth in our population, demand for property within the region is expected to remain, with performance expected to be slow but steady,” the report commented.
A four bedroom house at <a href="https://www.realestate.com.au/property-house-vic-clyde+north-125507274" target="_blank">23 Frankland Street</a>, Clyde North (above) has been listed for between $680,000 to $740,000.
Similarly a three bedroom house at <a href="https://www.realestate.com.au/property-house-vic-clyde+north-125505346" target="_blank">12 Montevideo Lane</a>, Clyde North (below) has been listed for between $440,000 to $460,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/19/12%20Montevideo%20Lane.jpg" alt="">
A three bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-clyde+north-125326378" target="_blank">3 Nokota Lane</a>, Clyde North (below) was recently sold for $440,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/19/3%20Nokota%20Lane.jpg" alt="">
Similarly a four bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-clyde+north-125261662" target="_blank">3 Glenelg Street</a>, Clyde North (below) was recently sold in April for $525,421.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/19/3%20Glenelg%20Street.jpg" alt="">
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Melbourne's Outer South East residential market is beginning to strengthen: HTW

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The Coffs Harbour residential market is going through one of its strongest times, according to Herron Todd White’s recent report.
The property valuation firm says that demand for residential properties in Coffs Harbour is exceeding supply shortening selling periods and increasing values.
“The Coffs Coast is experiencing one of its strongest markets in recent times with demand exceeding supply in many areas which has resulted in shortened selling periods and substantial increases in values.
"Typically it is the affordable price point in the sub $550,000 market which has seen the strongest demand from both owner occupiers and investors, however market confidence has spread through all sectors of the market including rural residential which has seen a recent resurgence in demand,” the report stated.
Factors such as low cost of finance, population and limited stock is driving this growth in the area according to Herron Todd White.
“There are several factors driving the market including low cost of finance, increasing population due to lifestyle benefits for both retirees and families moving from southern regions, infrastructure upgrades in the form of the Pacific Highway, limited available stock for vacant land and diversity of housing product ranging from coastal to rural communities with good access to regional facilities provided at Coffs Harbour.
"To a lesser degree investors are being driven towards SMSF property investment and with the ALP pushing for restrictions on negative gearing, this may be driving investors to enter the market prior to possible changes to tax benefits.
"A major factor in the cooling of the market will be rising interest rates which will dampen long term consumer confidence, however continued population growth should see demand remain strong against the current limited supply.
"Wage growth is also an issue.
"With the exception of the public sector, wage growth and employment are not rising at the same rate as property prices.
"This will affect the affordability of property within regional localities which has traditionally been a major factor in deciding to relocate to regional New South Wales,” the report advised.
A two bedroom villa at <a href="https://www.realestate.com.au/property-villa-nsw-coffs+harbour-125308906" target="_blank">2/12 Pitt Street</a>, Coffs Harbour (above) has been listed for $332,000.
Similarly a three bedroom house at <a href="https://www.realestate.com.au/property-house-nsw-moonee+beach-125217646" target="_blank">10A Moonee Creek Drive</a>, Moonee Beach (below) has been listed for $515,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/16/10A%20Moonee%20Creek%20Drive.jpg" alt="">
A two bedroom house at <a href="https://www.realestate.com.au/sold/property-house-nsw-coffs+harbour-125325914" target="_blank">29 Masonary Road</a>, Coffs Harbour (below) was recently sold for $340,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/16/29%20Masonary%20Road.jpg" alt="">
Similarly a two bedroom villa at <a href="https://www.realestate.com.au/sold/property-villa-nsw-sawtell-125256346" target="_blank">2/49 Eighteenth Avenue</a>, Sawtell (below) was recently sold for $365,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/16/2_49%20Eighteenth%20Avenue.jpg" alt="">
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Coffs Harbour residential market the strongest in recent times: HTW

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2016 was a bumper year for the retail investment market on the Gold Coast and early indicators suggest that 2017 should hold its form as well, according to Herron Todd White’s recent report.
The property valuation firm says that retail is currently the strongest of the commercial asset classes on the Gold Coast, following the national trend of being a highly sought after investment for private individuals, SMSFs and syndicates.
However this high demand and reluctance of owners to sell is resulting in a very limited availability of stock and a reduced volume of sales.
"The result is that the yield gap between primary and secondary properties is narrowing," the report stated.
Some notable sales in 2016 include:
• Reedy Creek Shopping Centre, anchored by Woolworths, 5.8 percent;
• Moo Moos Steakhouse, a strata retail restaurant at Broadbeach, 6.2 percent;
• 7/11 and McDonalds at Palm Beach, 6 percent; and
• Norfolk Village Shopping Centre (no anchor tenant), 6.9 percent.
This demonstrates that an array of different property types including strata, freehold, national and local (albeit well established) operators are all achieving prices within 110 basis points of each other.
“In terms of looking at the year ahead, we often reference the Ray White January 2017 auction event which is one of the largest commercial auctions of the year.
Nine of the 23 properties sold on or before the auction, with active bidding on all but three of the properties.
All in all, a good indicator that market sentiment remains strong,” the report stated.
But with such a strong head of steam, it is important for investors to critically analyse what they are looking for in an investment, be it capital growth, a steady income stream or the opportunity to value add.
"With yield levels and interest rates at historic lows, further yield compression would appear unlikely.
In fact as the gap between primary and secondary property narrows, the risk of a correction increases for the latter.
A steady income stream is clearly an outcome any investor would be trying to achieve," the report advised.
But the reality is that consumer sentiment can be volatile and property owners are still prone to tenant businesses having periods of good and bad trading.
Securing a property with national tenants will be the best way to decrease this volatility, but it will come at a price.
"As we move into 2017 it will be important for investors to differentiate properties with a higher number of local businesses; this higher risk profile should command a higher investment return.
Value adding is an investment strategy reserved for the more entrepreneurial property owners out there.
The opportunities do not come up often and when they do are commonly disguised as a pretty average investment.
The benefits can be twofold if embarking on such a project - the prospect of increasing rental potential whilst attracting a firmer investment yield on completion to compound capital growth.
Patience and a level head will be keys to success in 2017," the report suggested.
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